A Brief Word on SENTIMENT

DUMB.

If I had a dollar for every time we were asked (at Stocktwits) to provide a sentiment measure, I would be running an old media company.

Ameritrade $AMTD and Etrade $ETFC have probably got the best retail sentiment indicators – retail investors that buy odd-lots. I don’t think anyone has retired off this sentiment indicator.

PRICE is sentiment.

The new web is not about feelings and ‘happiness’ index’s.

It’s about ideas and curation. In the financial world I would add speed and breadth.

My sentiment on sentiment is :(

10 comments

  1. Hey Andy. I never assume anything and we have been building sentiment data from day one. We will give the customer what they want and have our own spin on sentiment. We like people short stocktwits. Allows for upside surpises.

  2. Hey Andy. I never assume anything and we have been building sentiment data from day one. We will give the customer what they want and have our own spin on sentiment. We like people short stocktwits. Allows for upside surpises.

  3. AndyFinkle says:

    That’s sad. It sounds like you ‘assume’ that Stocktwits sentiment will be a contrary indicator – and that somehow if that’s how it ended up, it would mean Stocktwits failed.

    Not only would a sentiment indicator be a brilliant and natural addition to Stocktwits, it would offer another potential revenue stream. Back in the day firms like fidelity paid clueless loons like Elaine Gazarelli $5 million dollars just to tell them that she ‘liked’ or ‘disliked’ the market.

    As someone who did much A/B testing for startups over the years, I can assure you that ultimately Stocktwits would be able to correlate some fantastic data. Perhaps the ‘recommended’ stream would be spot on, while the ‘general’ stream was a contra indicator (OR VISE-VERSA!). Stocktwits has a large and broad enough group of investors that there would however definably be a correlation. And once the math was done, and the correlation flushed out- that would be actionable by us, the Stocktwits community. Isn’t that what Stocktwits is all about.

    Still short Stocktwits but long Howard Lindzon :-)

    http://twitter.com/A_F

  4. AndyFinkle says:

    That's sad. It sounds like you 'assume' that Stocktwits sentiment will be a contrary indicator – and that somehow if that's how it ended up, it would mean Stocktwits failed.

    Not only would a sentiment indicator be a brilliant and natural addition to Stocktwits, it would offer another potential revenue stream. Back in the day firms like fidelity paid clueless loons like Elaine Gazarelli $5 million dollars just to tell them that she 'liked' or 'disliked' the market.

    As someone who did much A/B testing for startups over the years, I can assure you that ultimately Stocktwits would be able to correlate some fantastic data. Perhaps the 'recommended' stream would be spot on, while the 'general' stream was a contra indicator (OR VISE-VERSA!). Stocktwits has a large and broad enough group of investors that there would however definably be a correlation. And once the math was done, and the correlation flushed out- that would be actionable by us, the Stocktwits community. Isn't that what Stocktwits is all about.

    Still short Stocktwits but long Howard Lindzon :-)

    http://twitter.com/A_F

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