Hedge funds use satellite imagery to predict revenues

Hedge funds use satellite imagery to predict revenues

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US: Analysts at hedge funds are using analysis of satellite imagery to learn more about business and predict revenues. They are including their findings in the quarterly and annual reports also.

Recently, UBS Investment Research issued its earnings preview for Wal-Mart”s second quarter, which publicly revealed that UBS used satellite imagery to gather data about the parking lots at Wal-Mart stores. Neil Currie, the UBS analyst who studied the satellite data, concluded that there was enough correlation between the images of the parking lot and Wal-Mart’s quarterly earnings. Currie purchased the analysis from a Chicago-based firm called Remote Sensing Metrics LLC, which had sourced the satellite imagery of more than 100 Wal-Mart stores. The analysts at Remote Sensing Metrics counted the cars in Wal-Mart’s parking lots to know the customer flow. They used the data to predict the company’s quarterly revenue.

Source: cnbc.com