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How to Validate an Investment Thesis Using Alternative Data

A practical step-by-step process for using search, social, traffic, and sentiment data to confirm or challenge an investment thesis before it gets tested by earnings.

Every investment thesis rests on assumptions about the world: demand is recovering, market share is shifting, a product is resonating with consumers, or a brand is losing relevance. Traditional financial data tests those assumptions with a lag of 30-90 days when a company reports. Alternative data lets you test them in near real time. This post is a practical guide to how that works.


The core logic

An investment thesis is usually a prediction about a future state: "this company's revenue will beat consensus next quarter," or "this brand is gaining share in a growing category," or "consumer de

Paradox Intelligence Research

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