Yes, the sum of present values of future income streams. I understand that. What I am pointing out is a bunch of analysts putting marks on the wall, a company crushing those estimates with strong future guidance, and then the stock dropping off.
The market doesn't entirely act as a measure of sum of future income streams anymore. It should be a scale, but some big players put their weight on the scale as well.
In many ways, it has become a casino whereby the house (big hedge funds) move prices to where they want them to make a profit. They know retail investors will flood into great results and guidance. Sometimes it seems that they take advantage of that, depressing prices for awhile, waiting until retail sells out of a lowered position, and then they come in and scoop up the shares that they want at the prices they want. They also leverage the media to move prices. I think coordination, collusion, and manipulation have been on the rise.
Take a listen to this.