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Since investing involves doing as much research as possible, it's not surprising that investors should take to Twitter to follow the latest news and updates on the stocks they're considering.
Since investing involves doing as much research as possible, it's not surprising that investors should take to Twitter to follow the latest news and updates on the stocks they’re considering.
Even though you can’t predict that stock market (but wouldn’t that be nice?) there is a study that revealed an algorithm could be used to “financially exploit tweets,” according to the Financial Times.
Johan Bollen and Huina Mao of Indiana University discovered there was a direct connection between how the calmness of Twitter and the Dow’s movement. The calmer people were, the more likely the Dow would rally. And in the middle of the Recession, they predicted the direction of the Dow, two to six days in advance, with 87.6% accuracy.
Even if you don’t have all the fancy equipment to process millions of tweets at once, the platform can be a good source of information simply by following posts about the company in which you’re interested.
Bloomberg has ranked the stocks that had the most Twitter postings in May. It looked at posts for U.S. common stocks that contained the $ and the ticker. To determine the legitimacy of a post, Bloomberg considered correlation with news from reputable news organizations, number of messages from a curated set of Twitter users, distribution of postings according to users and distribution of postings according to time of day.
The top two most mentioned stocks left the rest of the top 10 in the dust when it came to how many Twitter postings they had.
Symbol: LNKD
Industry: Internet
Closing price (7/1/13): $183.12
Market cap: $19 billion
Postings in May: 8,269
Change over April: 97.7%
One-month return: -12.79%
One-year return: 74.33%
9. Netflix
Symbol: NFLX
Industry: Internet
Closing price (7/1/13): $224.28
Market cap: 12.1 billion
Postings in May: 8,648
Change over April: -46.7%
One-month return: 4.71%
One-year return: 256.64%
Amazon.com
8. Vringo
Symbol: VRNG
Industry: Telecommunications
Closing price (7/1/13): $3.09
Market cap: $246 million
Postings in May: 8,781
Change over April: -27.5
One-month return: 10.99%
One-year return: -17.41%
Symbol: MSFT
Industry: Software
Closing price (7/1/13): $34.36
Market cap: $290 billion
Postings in May: 9,821
Change over April: -22.3%
One-month return: 6.16%
One-year return: 23.21%
One-year return: 23.21%
CBS Interactive
Symbol: BAC
Industry: Banks
Closing price (7/1/13): $12.92
Market cap: $141.8 billion
Postings in May: 13,022
Change over April: 66%
One-month return: 10.97%
One-year return: 86.43%
Blog.alertsec.com
Symbol: FB
Industry: Internet
Closing price (7/1/13): $24.81
Market cap: $56.8 billion
Postings in May: 21,058
Change over April: 12.6%
One-month return: -12.32%
One-year return: -17.74%
Symbol: GOOG
Industry: Internet
Closing price (7/1/13): $887.89
Market cap: $290.5 billion
Postings in May: 25,452
Change over April: 5.6%
One-month return: 5.66%
One-year return: 49.99%
Google Glass from Google.com
Symbol: BBRY
Industry: Computers
Closing price (7/1/13): $10.28
Market cap: $7.6 billion
Postings in May: 28,445
Change over April: 6.3%
One-month return: -14.33%
One-year return: 35.09%
Symbol: TSLA
Industry: Auto manufacturers
Closing price (7/1/13): $117.18
Market cap: $11.7 billion
Postings in May: 46,534
Change over April: 585.6%
One-month return: 81.07%
One-year return: 231.39%
Tesla.com
Symbol: AAPL
Industry: Computers
Closing price (7/1/13): $409.22
Market cap: $406.3 billion
Postings in May: 69,170
Change over April: -34.9%
One-month return: 2.25%
One-year return: -20.48%
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