Social Media Trends Spawn Sentiment Analysis – Bloomberg

Netflix

The torrent of posts on Twitter Inc. last year about Netflix Inc. (NFLX) might have tipped off investors to stock swings that erased about $8 billion from the movie-rental company’s market value in three months.

Topsy Labs Inc., a site that searches data on the microblogging service, analyzed tweets during a period around Netflix’s decision last September to split its DVD and streaming businesses. By examining posts such as “just canceled my Netflix subscription,” Topsy was able to pick up signals of a coming drop. Now, it’s taking those results to help build a new service to aid investors in predicting other stock moves.

“Information dissemination is now largely not through publication, but through conversation,” said Rishab Ghosh, co- founder and vice president of research at Topsy, based in San Francisco. “We’ve actually been able to show that you can take that data, put it through processing, and relate it to the market return for a specific stock.”

Topsy is one of several companies, including WiseWindow and Derwent Capital Markets, that use so-called sentiment analysis, a cutting-edge field where companies examine the chatter on Twitter, Facebook Inc. and blogs to help them predict stock movements, market trends and the success of new products.

Social media’s growing influence throughout the world, such as the protests in the Middle East during the “Arab Spring,” has made sentiment analysis an important tool in other areas, such as the measurement of political risk. It also may have broad applications in gauging voter attitudes during, for instance, an election year.

via Social Media Trends Spawn Sentiment Analysis – Bloomberg.

Strange Random Media Quote:

“We are so cleverly manipulated and influenced by the media and establishments on both the right and left, that the truth has become hopelessly lost in semantics.” – Jules Carlysle (Author of the book “Dumbass” –  Canadian Author and Humorist, b.1970)

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Posted on January 23, 2012, in Article and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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