Is AI failing your stock research? See why GAAP metrics might be misleading you.

14 Apr 2026 · 1 min

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ChatGPT fails basic financial analysis, confusing GAAP earnings with economic earnings when asked about Domino's Pizza and S&P 500 companies. The AI cites a New Constructs report on core earnings but misrepresents it as economic earnings, a distinction that matters for spotting real value.

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Heads up, Google ChatGPT will not give you an accurate list of companies where economic earnings are greater than GAAP earnings. And you know what, I decided I wanted to share a little bit on this front. I went into ChatGPT and I asked it, show me the difference between GAAP earnings and economic earnings for Domino's Pizza. Let's see here. GAAP earnings, what most investors see. Economic earnings, what actually creates value. That's true. That's the right formula. I don't get any numbers here, do I? If you go into our AI, you will get a very specific formula. How about how many stocks in the S&P 500 have economic earnings greater than GAAP earnings right now? Here's what the answer from ChatGPT is, my friends. The best available data on this comes from new constructs, S&P 500 GAAP versus core economic earnings, which is the closest Apples-to-apples measure of economic earnings greater than GAAP earnings. And by the way, this is incorrect. This report they're talking about was based on core earnings, which is not the same as economic earnings.