Tech's Factor Narrative: Profitability Beats Innovation
- Joseph Mezrich
- Feb 18
- 2 min read
AI-based techniques, such as natural language processing (NLP) analysis of earnings calls, can reveal management or analyst sentiment about a company, potentially helping to predict market behavior. But what about investors' sentiment? Factor trends—the patterns of which factors generate returns and which factors are dismissed by the market—provide insights into investors' sentiment based on their factor narrative.
