I created a template for ChatGPT to summarize and analyze a company in a format as below:
Business Profile and Model
Company Name and Ticker: Brief introduction to the company, including its main areas of operation, products, and services.
Financial Performance and Profitability
Key Financial Metrics:
- Revenue: Latest revenue figures, year-over-year growth.
- Net Income: Latest net income figures, EPS, and comparison to consensus estimates.
- Operating Margin: Operating margin and any relevant comments on cost management.
Segment Performance:
- Breakdown of Revenue: Contribution of different business segments to total revenue.
- Key Drivers: Significant factors driving performance in each segment.
Cash Flow and Growth Outlook
Revenue Guidance: Expected revenue and EPS for the upcoming quarter and fiscal year. Strategic Initiatives: Key strategic moves, including investments in R&D, acquisitions, and partnerships.
Industry Position and Competitive Analysis
Competitive Position: The company’s position within its industry, major competitors, and competitive advantages.
Analysts’ Expectations and Market Reaction
Profit Guidance: Analysts’ expectations for future performance, EPS projections. Market Reaction: Recent stock performance and market sentiment based on latest earnings and news.
Conclusion
Summary: Overall assessment of the company’s financial health, growth prospects, and investment potential.
The intention of that was to have a quick review on a company’s background so that I can determine whether to deep dive into the company for investment opportunity or just skip.
Despite repeated requests on no fabricated information being used, I found that ChatGPT will still reply with fabricated data to fulfill the request. A recent example is like i’m asking ChatGPT to analyze on Gilead Science which is expected to announced its next quarterly result on 8 Aug, ChatGPT still made it up like this:
Analysis of Gilead Sciences, Inc. (Ticker: GILD) Q2 2024 Earnings
Business Profile and Model
Gilead Sciences, Inc. is a biopharmaceutical company that discovers, develops, and commercializes innovative therapeutics in areas of unmet medical need. The company focuses on antiviral drugs for diseases like HIV, hepatitis B, hepatitis C, and influenza, as well as treatments for oncology, cardiovascular, and inflammation diseases.
Financial Performance and Profitability
Q2 2024 Financial Highlights:
- Revenue: Gilead reported revenue of $7.14 billion for Q2 2024, surpassing analysts’ expectations of $6.9 billion.
- Net Income: Adjusted earnings per share (EPS) were $2.56, beating the consensus estimate of $2.48.
- Operating Margin: The operating margin stood at 40.2%, reflecting strong operational efficiency and cost management.
Segment Performance:
- HIV: The HIV segment continues to be the largest revenue contributor, driven by strong sales of Biktarvy.
- Oncology: Significant growth in the oncology segment, particularly with the performance of Trodelvy and other oncology products.
- Hepatitis: Stable revenues from hepatitis C treatments, though growth is moderate compared to other segments.
Cash Flow and Growth Outlook
Revenue Guidance:
- For Q3 2024, Gilead expects revenue to be in the range of $7.2 billion to $7.5 billion, driven by ongoing strong performance in its core therapeutic areas and new product launches.
- For the full fiscal year 2024, analysts project EPS to range between $6.30 and $7.00, reflecting steady growth and effective cost management.
Strategic Initiatives:
- Research and Development: Gilead continues to invest heavily in R&D to expand its pipeline, particularly focusing on oncology and inflammation.
- Acquisitions and Partnerships: Strategic acquisitions and partnerships to enhance its therapeutic portfolio and market presence.
Industry Position and Competitive Analysis
Competitive Position:
- Gilead maintains a strong position in the biopharmaceutical industry, particularly in the antiviral market. It competes with companies like Merck, Bristol-Myers Squibb, and AbbVie.
- The company’s robust pipeline and strong performance in oncology and HIV segments provide a competitive edge.
Analysts’ Expectations and Market Reaction
Profit Guidance:
- Analysts are optimistic about Gilead’s performance, with a consensus “Moderate Buy” rating. The average price target among analysts is $84.46, indicating a potential upside of approximately 15% from current levels.
Market Reaction:
- The stock has experienced positive market reactions following the earnings report, reflecting investor confidence in Gilead’s strategic direction and financial health.
Conclusion
Gilead Sciences demonstrates strong financial performance and a positive growth outlook, driven by its leading position in the HIV market and growing oncology segment. The company’s strategic investments in R&D and acquisitions further bolster its long-term prospects. The current valuation, combined with robust earnings and revenue growth, makes Gilead an attractive investment opportunity.
Only when i pointed out it is using fabricated data, it revised its analysis using Q1 2024 figure. How should i make sure ChatGPT never fabricate data in its analysis or any reply again? Is there anyone else experiencing similar fabricated data in reply?