>

My Sunday Washington Post Business Section column is out. This morning, we look at How Twitter is becoming your first source of investment news.

Here’s an excerpt from the column:

“Are you sensing a pattern here? Getting more and more of our news from the social network is having significant repercussions for markets — and your money.

These sorts of obscure and wonky analyses never used to see the light of the day outside of academia. Today, however, Twitter has created interconnected communities of professionals that encourage these memes to spread fast and wide.

In less than seven years, Twitter has gone mainstream. Companies such as StockTwits have built entire networks on he Twitter platform, populated with several hundred thousand traders. (Disclosure: I am a venture investor in StockTwits.) Even the Bloomberg data service now has curated Twitter feeds on its terminals.

Twitter has become a powerful tool for traders, investors and journalists. Academia has noticed. Sandy Pentland and Yaniv Altshuler of the MIT media lab in Boston are trying to determine how investors are using Twitter to gain an edge in the markets. Traders are incorporating social media into their information consumption, and it is tremendously useful to them.”

Full column is here

Here is my page G6 artwork:


>


Source:
How Twitter is becoming your first source of investment news
Barry Ritholtz
Washington Post, April 21 2013   http://www.washingtonpost.com/business/how-twitter-is-becoming-your-first-source-of-investment-news/2013/04/19/19211044-a7b3-11e2-a8e2-5b98cb59187f_story.html

Category: Apprenticed Investor, Investing, Technology

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

5 Responses to “How Twitter Became Your 1st Source of Investment News”

  1. rd says:

    I see Twitter being a major source of information for trading but not investment. Who is going to purchase a stock, ETF, or mutual fund with a possible 10 year holding horizon based on somebody’s twitter comment?

    However, trading is based on what is happening now and is as likely react on an instantaneous basis to misinformation as information.

    • Thats a fair point — but I was referring to the broader sense. Twitter drives much of the conversation, its where journalists find their ideas that work their way into the mainstream . . .

  2. jbegan says:

    Everything I know about trading originated on Twitter one way or the other. My understanding of trading prior to Twitter was strictly fundamental as proposed by Jim Cramer and similar sources. Thank God I found twitter to fill in the blanks and as a source of current material and explanation of TA.

  3. Pantmaker says:

    Twitter, Stocktwits, etc. are like Yahoo Finance message boards on Ritalin.

  4. [...] Ritholtz: How Twitter Became Your 1st Source of Investment News [...]