What's the fascination with "beaten favorites"?

[gogasgoboom]

Often hear handicappers pointing out a horse was a beaten favorite last time out. Anyone factor that into their selections?

[shotgunner]

It’s more context of the field they faced previously. I factor it in, but it’s not super important.

[Brkn Headpole]

Couple different ways to look at it.

1. Do they tend to be overbet alot and burn a lot of cash?
 Not a horse to go back to.

2. Should the horse have been favorite last start or did it take alot of "non public cash"
ie The connections expected a big effort and either got overraced or wasn't as good as expected. I see alot of those horses come back to win the 2nd week after expecting better things.