S&P Dow Jones indexes track Twitter shares in real time to see how many people feel positive about 200 S&P 500 companies (Tesla) with the best sentiment ratings. Today, he launched two Twitter mood analysis tools to measure the level of positivity towards companies (or their profit potential) via “$ cashtags”. According to a press release, they will receive a “z-score” that reflects levels of positivity, quantified in proportion to positive words.
This move in some ways institutionalizes the madness of memes, although it does not measure the shares of memes (potentially fun revenge for Reddit’s WallStreetBets to return to the lurking), only large companies. And it could be a little harder for retail investor groups to fill Amazon with tweets. If nothing else, it seems that analyzing $ cashtag tweets is more likely to allow whales to fuck up retailers who throw money at $ cashtags and rockets. Large financial companies do not seek advice from Twitter; CNBC only cares when there is a wave on social media.
Or, in the words of Peter Roffman, Mr.lobal head of iinnovation isstrategy at S&P Dow Jones Indices: “Factor-based indices are a popular strategy for passive investors, so we’re excited to work with Twitter to bring this unique slope to the S&P 500.” Don’t feed traders with your tweets!
The release also implicitly points to GameStop upset earlier this year: “The conversations that take place and the opinions that are shared on social networks have an increasingly significant impact on the markets. On Twitter, financial talks in the US grew by more than 26% in 2020 compared to 2019, according to internal Twitter data, signaling a growing community on the platform. ”
If you’re trying to send a stock to the Moon, make sure it’s not on the S&P 500. Or stick to Discord. Or run your own mood analysis program on Twitter.
The mood analysis on Twitter will only be available to S&P Global Public data subscribers.
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