Social Media Analytical Tools
Summary: While we know that news and company performance reports drive stock market prices, public/social sentiment may play an equally important role.
Social media has fundamentally changed the way that we interact with each other and exchange information. As a result, there has been an effort to measure the “sentiments” available on social media like Twitter, to ascertain people’s opinions about a multitude of topics. While we know that news and company performance reports drive stock market prices, public/social sentiment may play an equally important role.
The problem is that there’s a huge amount of social chatter, making it difficult to analyze it in its raw form. However, the suite of social analysis tools available in Power E*TRADE may help you leverage consumer insights based on Twitter posts. This quantified and codified data may help you find new trading ideas using current social sentiment metrics and timely trend reports.
There are three main social media analytical tools available on Power E*TRADE that you can use to help inform your trading strategies: 1) Social Sentiment scans in Live Action; 2) real-time Social Sentiment metrics in the Quotes page; and 3) exclusive Trend Watch reports, powered by Likefolio.
Detailed below is a more in-depth look at each of these tools that provide actionable market intelligence:
1. Social Sentiment scans in Live Action - lets you scan for stocks and ETFs based on social buzz metrics to help uncover potential trade ideas based on the sentiment of millions of Twitter users.
Top and Bottom - the stocks and ETFs with the most positive and most negative sentiment based on the algorithm’s filtering of relevant tweets, synthesized into a net Buzz Score (the measure of the deviation of a stock’s sentiment from its normal state).
2. Social Sentiment metrics on the Quotes Page – lets you tap into the current public opinion for any company/security. Simply pull up the Quote page for the security you’re interested in and view the Buzz Score and Buzz Volume.
Buzz Scores – positive scores are generally associated with a favorable market sentiment while negative scores reflect an unfavorable sentiment. (Note: Buzz metrics are available for individual securities and ETFs that have sufficient social media data.)
Buzz Volume – indicates the amount of volume of the current Social Buzz. Higher levels of volume may indicate a stronger Buzz Score indication.
3. Trend Watch - lets you access social data to identify shifts in consumer behavior on Main Street before it becomes news on Wall Street. This data generally falls under three categories:
Purchase Intent: Shows the number of people talking about doing business with a particular company. Purchase Intent is even more important (and predictive) than consumer happiness because it’s a live look into actual consumer spending behaviors.
Consumer Happiness: a measure of how happy or unhappy customers are about the goods and services sold by a particular company.
Macro Trend Information: shows the synthesis of consumer metrics that point to major shifts in consumer behavior. This data gives investors the opportunity to take advantage of these shifts early-on. Each month a new, exclusive report is published on several topics.
In summary, Power E*TRADE has the tools that can help you uncover potential trading opportunities by leveraging the power of social media. Log on and launch Power E*TRADE for additional insights about a possible investment before you make your next move.