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Re:Amazon.com Announces Second Quarter Sales Up 20% by wutbrodo on Friday July 26, 2019 @02:37AM (#20532842)
This assumes that people operate only on expected value and don't care about variance at all, which is incorrect empirically, theoretically, and intuitively. The premium you pay for reducing variance is called a "risk premium", and it follows pretty trivially from the diminishing marginal utility of money (though there are many other ways to derive/explain it). This is the entire reason that insurance exists as a product: it's not designed solely to cover existential risks or to prey on the irrational.
Re:Amazon.com Announces Second Quarter Sales Up 20% by HugThem on Friday July 26, 2019 @04:25AM (#20533230)
Well, if you pay me more then $0.05 for the $0.6/-$0.5 coin flip, I will happily sell you some. How much do you want?
Re:Amazon.com Announces Second Quarter Sales Up 20% by fbreton on Friday July 26, 2019 @05:02AM (#20533386)
I think GP disagreed with your assumption that a $1.1/-$1 coin flip was worth $0.05, so they'd pay more for the $0.6/-$0.5 coin flip than for the $1.1/-$1 flip, but still less than $0.05.
Re:Amazon.com Announces Second Quarter Sales Up 20% by HugThem on Friday July 26, 2019 @05:09AM (#20533416)
If that is true, then I will happily buy $1.1/-$1 flips for $0.049 from them!
Re:Amazon.com Announces Second Quarter Sales Up 20% by fbreton on Friday July 26, 2019 @05:40AM (#20533538)
They would pay a premium to avoid uncertainty, so they wouldn't accept that offer either. The uncertainty is the same whether you sell or buy the flips. I don't know you, but I guess you wouldn't pay $499K for a $1M/$0 flip, and you wouldn't sell such a flip for $499K either. This is the same phenomenon on a much smaller scale.
Re:Amazon.com Announces Second Quarter Sales Up 20% by HugThem on Friday July 26, 2019 @06:01AM (#20533610)

    I guess you wouldn't pay $499K for a $1M/$0 flip
No. But the discussion here is about shares. And they are not $499k a piece.

We are discussing if the share price of a company that publishes numbers in line with expectations should go up.

Re:Amazon.com Announces Second Quarter Sales Up 20% by kgwgk on Friday July 26, 2019 @12:42PM (#20536114)
What do you mean by “expectations”? If Amazon trades a $2000, is the expectation that it will stay at $2000 forever? Or is the expectation that will go up because it will surpass expectations?

If by expectations we mean the numbers published by sell-side analysts they may or may not be close to the actual market expectations.