Folks have been speculating for a while now about Twitter’s ability to predict the stock market.
There have been companies promising to make predictions about future stock price movement based on Twitter sentiment and one professor even secured a “Twitter mood predictor patent” in an attempt to do the same.
If you own stock, you may have dismissed the above as hogwash and paid the whole thing little mind, but you better not dismiss this, because tweets will now be displayed on trading desk terminals.
Buy gold, dig a hole and bury it.
According to The New York Times, Bloomberg plans to incorporate tweets into its data service. “The new feature allows traders and other professionals to monitor social media buzz and important news about companies they follow.”
Bloomberg’s new service shows tweets sorted by company and topic, allowing users to search by key word and to set up alerts for when a particular company is getting an unusual amount of attention.
Bloomberg will show tweets from companies, chief executives and other news-makers, in addition to certain economists and financial bloggers. Mr. Rooney cited the economist Nouriel Roubini and Paul Kedrosky, the investor and blogger, as examples.
And apparently failed to mention the many fake accounts that will inevitably pop up.
This comes on the heels of the U.S. Securities and Exchange Commission’s (SEC) new rules around public disclosure. As we mentioned previously, the SEC announced it will consider Twitter (and Facebook) as valid public disclosure sources, assuming investors have been alerted to monitor these accounts.
“It just seems like there’s been a tipping point where more companies are using Twitter and other social media to put out announcements,” said Ted Merz, news content business manager at Bloomberg. “That’s evidenced by what the S.E.C. put out.”
We wonder if they’ll refer to StockTwits for info . . . or maybe they’ll just stick to Twitter and it’s super useless ticker symbols?
Regardless of how they source it, we just hope no one falls victim to a Twitter hoax like these folks did and sees their shares plunge as a result.
Share your own doomsday predictions below.
(image from Shutterstock)