Stock market prediction using Twitter

A recent paper presented at the ACM International Conference on Web Search & Data Mining uses a simulation to show that a trading strategy based on Twitter conversations can outperform the Dow Jones and basic trading strategies. Using twitter and stock market data over a four-month period, the study also finds that the number of distinct twitter conversations about a stock is a strong predictor of stock trading volume. A higher number of distinct conversations is also positively related to higher stock prices while lower number of conversations can predict a lower stock price.

 

The main trading room of the Tokyo Stock Excha...

Image via Wikipedia

 

 

 

While past research has looked the sentiment, positive or negative, of tweets to predict stock price, little research has focused on the volume of tweets and the ways that tweets are linked to other tweets, topics or users. Further, past work has mostly studied the overall stock market indexes, and not individual stocks.

 

A key limitation of the study is that the market lost value during the examined time period. Thus the Twitter based strategy outperformed other strategies by losing the least amount.

 

For the study, the researchers simulated a series of investments between March 1, 2010 and June 30, 2010 and analyzed performance using several investment strategies.

 

Read more here and here. See the paper here.

 

 

 

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Social Media Demographics

This infographic by OnlineMBA.com displays the demographics (Gender, Age, Education and Income) of users for the top social media websites. College educated folks form a majority of users, as do women. Overall, Pinterest is dominated by women, while Google+ has mostly men users.

A Case Study in Social Media Demographics
Via: OnlineMBA.com

See the original infographic at OnlineMBA.

LinkedIn’s ‘Follow Company’ button

Earlier last month, LinkedIn launched a ‘Follow Company’ button, much on the lines of similar subscription / follow models on Facebook and Google+. This allows companies to add a ‘Follow’ button to their web properties. In the words of LinkedIn, clicking this button will enable companies to engage with existing and potential employees and customers.

 

Whether you are looking to stay up-to-date on company news, career opportunities or industry trends, following companies on LinkedIn is a great and easy way to gain insights and stay connected

 
This feature portends an uptick in adoption of LinkedIn by firms for not just recruitment, but also brand building efforts.

 

 

Get the code for the follow button here and read more here.

What Facebook knows about you

The fact that Facebook keeps a record of all user data does not come as a surprise. Facebook has admitted to this in its ToS as well as through various media releases. However, the implications of this fact – how much data Facebook has on each of its users and what it knows about them – come through only when one can actually ‘see’ the data for oneself.

An Austrian law student, Max Schrems, asked Facebook to send him all the data it had stored about him – he received a CD with 1222 PDF files. The below video visualizes what Facebook knows about him.

Homegrown Social Media in China

China is home to 500 million internet users, who spend 2.7 hours a day online. The Great Firewall of China blocks several western social media sites, including Facebook, Twitter, YouTube and WordPress. This has resulted in the mega-success of several homegrown alternatives. The below infographic by GPlus provides details about user motivations, comparative digital consumption habits and lists the most successful Chinese social media sites.

 

INFOGRAPHIC: A Social Media Revolution - China's Answer to Social Networking

Image via GPlus

See the original image at INFOGRAPHIC: A Social Media Revolution – China’s Answer to Social Networking | GPlus.com.

Google Music for Artists

The public launch of Google Music for consumers has been accompanied by a truly disruptive move by Google – Google Music for Artists. This offers artists a means to bypass traditional music publishers and go directly to the consumer. Google will take a one time setup fee of $25 and 30% of sales proceeds. Other key features include the ability to set album and track prices, create an artist page on the Android Market, sell music via Youtube, and close integration with Google+. This move hammers the last nails into the coffins of the purveyors of non-digital music distribution models and shrinking platforms like MySpace.

Image via Google

With Google Music you set your own retail prices for albums and tracks. You can quickly make your own promotions, like limited time price reductions, or make some tracks available as album-only purchases. The choices are yours.

You keep 70% of what you take in, paid to you monthly.

Every artist or band has a page within Android Market to help Google Music users find out more about you. The artist page includes your bio, photo, links and the original music you have available for sale.

Our integration with YouTube helps you sell your songs with a buy link in your music videos.

The Case of Orabrush: Building a multi-million dollar company using Youtube

Google’s blog tells the story of how an entrepreneur used Youtube based video ads to market millions of Orabrush – a tongue cleaner. After the failure of a $40,000 traditional ad campaign, the firm spent $500 on making a Youtube video (see the video here or below). After 2 years of increasing success (reflected in sales of over a million Orabrush), they approached Walmart. Again, when a $20,000 TV pitch failed to catch the attention of Walmart execs, the firm spent $28 on targeted FaceBook ads. Today Walmart and CVS carry the product at over 10,500 locations, making Orabrush the “first product to go from no sales online or offline, to nationwide retail distribution just using YouTube. ”

Image via Google

Their first ad is below:

Read more at Official Google Blog: The Orabrush story: How a Utah man used YouTube to build a multi-million dollar business.