The S&P Dow Jones Indices is monitoring inventory Twitter in real-time to see how positively individuals really feel about 200 S&P 500 corporations (Tesla) with the highest sentiment scores. Today, it launched two Twitter sentiment evaluation instruments to measure the extent of positivity towards corporations (or their revenue potential) through “$cashtags.” According to the press launch, they’ll be given a “z-score” reflecting ranges of positivity, quantified in proportion to constructive phrases.
The transfer type of institutionalizes meme inventory frenzy, although it’s not measuring meme shares (doubtlessly enjoyable revenge for Reddit’s WallStreetBets to get again at lurkers), solely massive corporations. And it is likely to be slightly more durable for bands of retail buyers to tank Amazon with dunk tweets. If something, analyzing $cashtag tweets appear extra prone to allow whales to screw retail merchants throwing cash $cashtags and rockets. Large monetary companies aren’t sourcing suggestions from Twitter; CNBC solely cares when there’s a social media-generated wave to experience.
Or, within the phrases of Peter Roffman, global head of innovation and strategy 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 tilt to the S&P 500.” Don’t feed the merchants your tweets!
The launch additionally implicitly nods to the GameStop upset earlier this yr: “The conversations taking place and opinions being shared on social media have an increasingly significant impact on markets. On Twitter, finance conversations in the US were up more than 26% in 2020 from 2019 according to Twitter internal data, signaling a growing community on the platform.”
If you’re making an attempt to ship a inventory to the moon, be sure it’s not on the S&P 500. Or stick with Discord. Or run your personal Twitter sentiment evaluation program.
G/O Media could get a fee
The Twitter sentiment evaluation will solely be accessible to S&P Global Public knowledge subscribers.
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https://gizmodo.com/s-p-trying-to-snag-some-of-that-snazzy-meme-stock-energ-1848085706