Wall Street analysts are reducing their earnings expectations for 2025, raising concerns among investors about potential risks associated with high stock valuations. Estimates for earnings per share (EPS) for the S&P 500 have been cut, despite the index's recent rally, which has been largely driven by valuation expansion rather than earnings growth. Additionally, projections for small-cap earnings have been halved since early 2022, while small-cap stocks are trading at similar levels to those in early 2022. Currently, around 60% of S&P 500 companies are experiencing positive EPS growth, an increase from approximately 50% in the first quarter of 2023. The downward revision of profit forecasts this year appears more significant than in previous years, prompting questions about whether investors should be concerned about the sustainability of stock prices amidst these changes.