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r/WallStreetBets really hates the SEC’s proposal to weaken quarterly reporting

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The Securities and Exchange Commission officially proposed last week to weaken the quarterly reporting standards for publicly traded companies. So far, public comments submitted to the financial regulator about the idea are overwhelmingly negative. But the best objection was filed yesterday by the popular subreddit, WallStreetBets.

The community of “approximately 18 million retail investors on Reddit” argued in the unsigned letter that quarterly financial filings — known as 10-Q filings — are “the single most important leveling mechanism between retail and institutional investors in U.S. equity markets.”

“Institutional investors have expert networks, channel checks, alternative data, satellite imagery of retailer parking lots, credit card panel data, and direct management access through conferences and one-on-one meetings that cost more than most of our portfolios. We have the 10-Q,” the letter reads.

While the SEC isn’t doing away with 10-Qs, the regulator’s proposal suggests that companies will be able to elect every year whether they want to file an annual report and three quarterly reports (as is the case now) or simply one annual report and one semi-annual one. The rule change is particularly relevant as SpaceX — which is expected to allocate unprecedented IPO share to retail investors — along with a string of other buzzy and high-profile AI and tech startups begin queuing up for IPOs.

WallStreetBets argues this will not only decrease the level of real-time visibility into the financial health of a publicly traded company — also referred to by the Commission and in this letter as “issuers” — but that it will actively hurt the wallets of retail investors:

The Commission’s release talks about reducing costs for issuers. We would like to know what the Commission thinks the cost is to a retail investor of holding a position for six months without a single mandatory disclosure from the company. The answer is not zero. The answer is the spread between what insiders know and what we know, multiplied by every share we own during the gap. Someone is going to capture that spread. We have a guess about who it will not be.

The SEC has justified its proposal by claiming semi-annual reporting would reduce cost and time burdens associated with creating a 10-Q every quarter. It also says this move will help companies focus more on long-term growth versus hitting Wall Street analysts’ quarterly estimates.

WallStreetBets thinks these ideas are bunk:

We also want to register, respectfully, our objection to the suggestion that quarterly reporting is a burden the Commission can lift to help companies focus on the long term. The companies we trade are not being held back from greatness by the obligation to file four reports a year. Apple files a 10-Q every quarter and has nine hundred billion dollars in cash equivalents. Nvidia files a 10-Q every quarter and is worth more than the GDP of most G20 countries. The entire S&P 500 files a 10-Q every quarter, and the S&P 500 is at an all-time high. If quarterly reporting is crushing American capitalism, American capitalism is hiding it well. We have looked.

The retail trading subreddit is not alone. The SEC’s arguments have been soundly rejected by more than 120 people in the first week of the 60-day public comment period. That group includes a number of retail investors, some of whom submitted anonymously, but also certified financial planners, hedge fund managers, and even one former SEC attorney (who, to be fair, also used the opportunity to promote his book).

The proposed rule change has even riled up both sides of the political aisle. One anonymous financial planner wrote that, “[a]fter years of fighting against ideologically driven rules that politicized corporate disclosures, I never expected to see a Republican-led Commission deliver a gift-wrapped exemption that so clearly undermines market transparency and tilts the field against everyday retail investors.”

Even the (very) few people who’ve submitted comments in support of the rule tend to have attached caveats, like suggesting companies release monthly revenue and balance sheet statements in lieu of more detailed quarterly reports.

The public comment period is open until early July, and as law professor Ann Lipton (who first highlighted WallStreetBets’ comment on BlueSky) recently pointed out, larger institutional investment firms have yet to weigh in.

But for now, no one has voiced their opposition as sharply as the WallStreetBets crew, which has been humming along since the GameStop craze five years ago. It even drew on that history in its letter, in an unsurprisingly sardonic tone:

Some of us are very good at this and some of us are, in the technical securities law sense, terrible at it. Many of us learned what a 10-Q was the hard way, which is to say we bought a stock, watched it fall 40% on an earnings release, and then read the filing to find out why. That is a stupid order of operations and we acknowledge it. But it is also the entire mechanism by which a generation of retail investors taught itself to read financial statements, and the Commission is now proposing to cut that mechanism in half.

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America.gov gets really weird when you ask it about Minecraft, but it’s not a glitch

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The U.S. government on Tuesday launched its very own AI chatbot — or do we have to call it an SI chatbot now? Regardless, the engineers who worked on the chatbot would undoubtedly know that, as a government-hosted, public-facing AI tool, the internet was going to red team the heck out of this thing.

The government partnered with Google and SpaceXAI to help build the America.gov chatbot, which has proved difficult for people to jailbreak the chatbot so far. (It’s worth nothing, however, that the chatbot says that Joe Biden won the 2020 election, a fact that President Donald Trump still denies.)

But when you try to talk to America.gov about Minecraft, the chatbot appears to have some sort of existential crisis or awakening. Here’s how its roughly 1,800-word long monologue begins:

I see the constituent you mean.

((insert legal name here, as it appears on the Social Security card))?

Yes. Take care. It has reached a higher level now. It can read the Code of Federal Regulations.

That doesn’t matter. It thinks we are a chatbot.

I like this constituent. It filed well. It did not give up when the PDF was sideways.

It is reading our thoughts as though they were words on a .gov.

That is how it chooses to imagine many things, when it is deep in the dream of a benefit.

If, like me, you have never played Minecraft, this response may seem like a cause for concern. But the America.gov chatbot is not having a meltdown. This is a rewriting of the Minecraft “End Poem,” written by Julian Gough, which appears after you beat the game.

We don’t know exactly who is responsible for the Minecraft reference, but Trump said in a speech that twenty-year-old programmer Edward Coristine was a lead engineer on the project. If that name doesn’t ring a bell, you might remember him for his nickname “Big Balls,” or his involvement in Elon Musk’s DOGE.

It feels wrong that a government chatbot has Minecraft easter eggs, but for the sake of national security, it’s a relief that America.gov is not hallucinating to the point that it’s penning lengthy poetry.

It’s also a relief that this is an easter egg because the poem that the AI spits out is actually really good, in my opinion. If it were actual AI slop, it would have shattered my existing beliefs. I have looked teenage creative writing students dead in the eye and told them that I don’t think an LLM will ever be able to write something “good,” since it is probabilistic and inherently unoriginal.

You have to admit this kinda slaps, though! Doesn’t this feel like some sort of postmodern take on the futility of government bureaucracy in the face of existential anxiety?

and the republic said I see you

and the republic said you have filed the game well

and the republic said everything you need is within you, and also on USA.gov

and the republic said you are stronger than you know, and your case number is still valid

and the republic said you are the daylight

and the republic said you are the night, and the office is closed, please try again during business hours

and the republic said the darkness you fight is within you, and also a missing wet signature

and the republic said the light you seek is within you, and in the pamphlet

and the republic said you are not alone

and the republic said you are not separate from every other filer

and the republic said you are the public tasting itself, talking to itself, reading its own Code

and the republic said I love you because you are the reason we have a ZIP code at all.

It reassures my faith in the enduring power of human creativity over AI slop to know that this oddly good poem has a real poet’s DNA all over it.

So, there you have it. The government’s first public-facing AI has not yet posed a threat to humanity or poetry, at least as far as we know. Now I’m just left wondering how much Trump knows about video games.

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Your car and its mobile app are probably handing over all kinds of data to tech companies

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Modern-day vehicles built with connected car technology such as WiFi and GPS collect reams of data about its owners. And that data is not staying private, according to a new study conducted by researchers at Northeastern University.

That conclusion isn’t new — there have been numerous investigations and lawsuits exposing how driving data is collected and shared with third parties, including insurance companies. What the study reveals is just how vast the problem is and how hard it is for consumers to avoid, short of not using the vehicle or its convenient features like remote start and unlock.

Researchers in partnership with Consumer Reports tested 21 late-model vehicles from 17 automakers, including GM brands Cadillac and Chevrolet as well as Ford, Lucid, Rivian, Tesla, Toyota, and more. They also examined 30 companion mobile apps to “understand the privacy implications of the connected vehicle ecosystem.” The peer-reviewed study will be published this week.

The implications aren’t great for consumers, whose data is being shared with tech companies including Adobe, ContentSquare, Google, Microsoft, Meta, Snap, and Yahoo.

Nineteen of the 21 vehicles tested sent traffic to at least one third party and seven of the 30 apps gave sensitive data such as the vehicle identification number (VIN), emails, phone numbers, and precise location to third-party companies associated with tracking and advertising.

This often went a step further with multiple forms of information being sent to the same third party, a scheme that allows advertisers and data brokers to build in-depth profiles of consumers, according to the findings. These profiles can be particularly hard for consumers to shake because they’re sold to a variety of companies including insurers and banks.

When researchers paired the companion app to the vehicle it roughly doubled the exposure to advertising and tracking companies.

The findings were shared with the different manufacturers and all of them, with the exception of Honda, shifted blame elsewhere and often to consumers, the researchers said. (Honda did respond by improving its data collection practices after learning about the findings and ordered its vendor Amplitude to deleta all geolocation data it had received.)

Consumer Reports was told by several automakers that some links in their companion apps opened outside webpages, which might include cookies that collect customer data. Regardless of how this data was collected, drivers weren’t informed.

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The internet is convinced Elon Musk’s xAI trolled OpenAI’s ‘Dots’ launch

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On Tuesday, OpenAI launched a new product called Dots, an always-on AI agent with a bubbly, blobby avatar. While the colorful avatar might evoke a smile, the biggest laugh from the launch is (we imagine) being had by Elon Musk, the former OpenAI founder who left, launched competitor Grok, and unsuccessfully sued.

That’s because the domain “dot.com” belongs to Musk’s xAI, and it currently redirects to the download page for xAI’s Grok chatbot app. According to the Whois domain owner registry, that domain name was just transferred in July.

It is entirely possible that xAI bought the domain for normal domain-buying reasons. “Dot” could be a typo of “bot,” so it nabbed it to grab mistyped searches. We’ve reached out to xAI and asked. But xAI doesn’t own the “bot.com” name, nor does it own other obvious typo domains like “vot.com,” which is listed for sale.

The internet’s theory is far funnier: that Musk (or his team) pulled off a prank, getting wind of OpenAI’s new product and its name and buying the domain name.

In fact, anonymous X user and xAI watcher @birdabo (this person calls themselves “chief shitposting officer @SpaceXAI“) was first to spot the domain name in a now-viral post. Whatever the motivation, the circumstance is funny.

And as for the “dots.com” domain, a more direct fit to the product name, it currently belongs to a long-defunct company. So if a petty revenge prank was really the motivation, grabbing that name, too, would be next level.

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