Crowdsourced earnings forecasts are less pessimistically biased than Wall Street (i.e., sell-side) analysts' forecasts before earnings announcements. Based on this observation, we examine how crowdsourced forecasts influence investors' evaluation of Street earnings surprises. Using crowdsourced...

This study examines whether crowdsourced forecasts of earnings and revenues help investors unravel bias in earnings announcement news, which is commonly derived from analyst forecasts. Our results suggest that investors, on average, understand and price the predictive signals reflected in...