#PAWFINDAY2

1. Stephen Morse - FinTech, Big & Alternative Data
leveraging alternative data sources
to gain critical advantage
part 1: social data alpha
Stephen Morse | @stephenwmorse
Neudata | www.neudata.co

2. Stephen Morse – FinTech, Big & Alternative Data
Stephen Morse, CAIA
Consultant & Advisor in areas of FinTech, AI and Big Data
Neudata - alternative data discovery and intelligence
20 years in FinTech, data, disruptive technologies
– firms acquired/now a part of Barra/MSCI, Dow Jones, ICE
and Twitter
Formerly, Twitter - head, global financial data partnerships
Neudata

3. Stephen Morse – FinTech, Big & Alternative Data
what does this guy have in common…

4. Stephen Morse – FinTech, Big & Alternative Data
what does this guy have in common…with this guy?

5. Stephen Morse - FinTech, Big & Alternative Data
leveraging alternative data sources
to gain critical advantage
part 1: social data alpha
Stephen Morse | @stephenwmorse
Neudata | www.neudata.co

6. Stephen Morse – FinTech, Big & Alternative Data
market landscape

7. Stephen Morse - FinTech, Big & Alternative Data
big data…alternative data… new data…

8. Stephen Morse – FinTech, Big & Alternative Data
alternative
data:
Stephen Morse - AI, Big, Alternative DataStephen Morse - AI, Big, Alternative Data

9. Stephen Morse – FinTech, Big & Alternative Data
alternative data classification & tagging
Source: Neudata Ltd © 2016 ; www.neudata.co

10. Stephen Morse - FinTech, Big & Alternative Data
social data

11. Stephen Morse – FinTech, Big & Alternative Data
why care about social media data?
Source: Giphy

12. Stephen Morse – FinTech, Big & Alternative Data
Trump tweets - markets move
Source: CNN; Getty Images

13. Stephen Morse – FinTech, Big & Alternative Data
Trump on Toyota ($TM)
Source: Buzzfeed; Twitter

14. Stephen Morse – FinTech, Big & Alternative Data
Toyota ($TM) down 3.1%
Source: Buzzfeed; Bloomberg

15. Stephen Morse – FinTech, Big & Alternative Data
8 billion social media accounts
0 400 800 1200 1600 2000 2400
Facebook
WhatsApp
WeChat
QQ
Instagram
Tumblr
Twitter
Snapchat
Pinterest
LinkedIn
2.06 B
106
328
Monthly active users; select social networks charted. Source: Statista (Sept 2017)

16. Stephen Morse – FinTech, Big & Alternative Data
social media for finance
FinTech Ecosystem

17. Stephen Morse - FinTech, Big & Alternative Data
estimates data

18. Stephen Morse – FinTech, Big & Alternative Data
crowd-sourced estimates
Source: Estimize

19. Stephen Morse – FinTech, Big & Alternative Data
crowd-sourced estimates
Source: Estimize

20. Stephen Morse - FinTech, Big & Alternative Data
sentiment, volatility and other trading indicators

21. Stephen Morse – FinTech, Big & Alternative Data
sentiment, volatility and other trading indicators
Source: Thomson Reuters

22. Stephen Morse – FinTech, Big & Alternative Data
Wells Fargo ($WFC) - fake account scandal
Source: Bloomberg. Chart: Wells Fargo.

23. Stephen Morse – FinTech, Big & Alternative Data
sentiment, volatility and other trading indicators
Chart: Mylan ($MYL). Source: Bloomberg

24. Stephen Morse - FinTech, Big & Alternative Data
fundamental and consumer insights

25. Stephen Morse – FinTech, Big & Alternative Data
Pokémon GO' craze
Sources: Forbes; LikeFolio; Google Images

26. Stephen Morse – FinTech, Big & Alternative Data
Stranger Things sustains social popularity 90 days on
Netflix ($NFLX) +19%
Sources: TickerTags

27. Stephen Morse – FinTech, Big & Alternative Data
foot traffic down at Chipotle ($CMG) - stock falls 6%
Source: Foursquare

28. Stephen Morse - FinTech, Big & Alternative Data
breaking news / event detection

29. Stephen Morse – FinTech, Big & Alternative Data
Carl Icahn

30. Stephen Morse – FinTech, Big & Alternative Data
Carl Icahn tweets on Apple ($AAPL)

31. Stephen Morse – FinTech, Big & Alternative Data
Carl Icahn’s tweet boosts Apple ($AAPL) $17B
Source: Yahoo!Finance

32. Stephen Morse – FinTech, Big & Alternative Data
Elon Musk tweets on Tesla ($TSLA)
Source: IBTimes; Twitter

33. Stephen Morse – FinTech, Big & Alternative Data
Elon Musk tweets - Tesla ($TSLA) jumps 2%
Source: IBTimes

34. Stephen Morse – FinTech, Big & Alternative Data
Hillary Clinton tweets on drug price gouging
Source: Fortune

35. Stephen Morse – FinTech, Big & Alternative Data
Clinton tweets - biotech ETF ($IBB) down 5%
Source: Fortune

36. Stephen Morse – FinTech, Big & Alternative Data
28% of M&A deals break on Twitter
Source: Selerity

37. Stephen Morse – FinTech, Big & Alternative Data
EU / Ireland tax ruling on Apple ($AAPL)
Source: Bloomberg; Twitter

38. Stephen Morse – FinTech, Big & Alternative Data
EU / Ireland tax ruling on Apple ($AAPL), down 3%
Source:Bloomberg

39. Stephen Morse – FinTech, Big & Alternative Data
Verizon ($VZ) reaches agreement with unions
Source: DataMinr

40. Stephen Morse – FinTech, Big & Alternative Data
refinery explosion - distillate futures spike 5%
Source: DataMinr : Google Images; WBRZ.com

41. Stephen Morse - FinTech, Big & Alternative Data
geo-political

42. Stephen Morse – FinTech, Big & Alternative Data
Turkish attempted coup unfolds on social media
Source: CNN; Gokhan Tan; Getty Images

43. Stephen Morse – FinTech, Big & Alternative Data
Turkish attempted coup unfolds on social media
Source: Bloomberg; Twitter

44. Stephen Morse – FinTech, Big & Alternative Data
Turkish attempted coup unfolds on social media
Source: Bloomberg

45. Stephen Morse – FinTech, Big & Alternative Data
Brexit
Source: Bloomberg

46. Stephen Morse - FinTech, Big & Alternative Data
view from the ivory tower

47. Stephen Morse – FinTech, Big & Alternative Data
Twitter predictive of unemployment numbers
Source: University of Michigan Job Loss Index; The Wall Street Journal

48. Stephen Morse – FinTech, Big & Alternative Data
view from the ivory tower
• The Wisdom of Twitter Crowds: Predicting Stock Market Reactions to FOMC Meetings via Twitter Feeds - Andrew Lo, MIT
• The Value of Crowdsourcing: Evidence from Earnings Forecasts - Adebambo, Bliss - University of San Diego
• The wisdom of the crowds: crowdsourcing earnings estimates - Deutsche Bank
• A nonlinear impact: evidences of causal effects of social media on market prices - Souza, Aste, University College London
• Quantifying the effects of online bullishness on international financial markets - Mao, Counts, Bollen - ECB
• Computing trading strategies based on financial sentiment data using evolutionary optimization - Ronald Hochreiter
• The 'Sixth' Factor -- Social Media Factor Derived Directly from Tweet Sentiments - Liew, Budavari - Johns Hopkins University
• Using Social Media to Measure Labor Market Flows - Shapiro et al., University of Michigan
• Using Tweets to Predict the Stock Market - Hu, Jiao, Zhu - Stanford University

49. Stephen Morse - FinTech, Big & Alternative Data
Thank you!
Stephen Morse | @stephenwmorse
+1-917-553-4845 | stephenwmorse@gmailcom
Neudata …alternative data discovery and intelligence
www.neudata.co