This presentation discusses the importance of Twitter Data in financial space. How the crowd-sourced data points can be used to unveil market-moving signals for financial investment and trading.

1. Leveraging Crowd-
Sourced Signals from
Twitter to Drive Financial
Trading

2. It is known that a single post on
Twitter can have a startling impact.

3. The same is also true
when it comes to the
financial market.

4. For instance…
In January 2013, a series of fake tweets were posted
about a company called Audience, claiming that they
were being investiged for “fraud”.

5. The stocks plunged down by
28%.

6. In another case, fake twitter accounts that mimicked well-
known short-selling firms posted tweets claiming that the
FDA had seized clinical-trial records of Sarepta Therapeutics
on the suspicions of “doctored” results.

7. Sarepta Therapeutics’ stock
fell down by 16% as a result.

8. However, the perpetrator
could only gain $97 from this!
Reason being the quick bounce
back of the stocks after other
investors swiftly figured out the
issue.

9. These examples unveil a lot
about how the financial trading
domain uses Twitter data.

10. Since 2013, growth in this area has accelerated significantly
with the SEC confirming companies can use Twitter to comply
with their fair disclosure obligations (“Reg FD” applies to
Twitter).

11. In the present age, the data-savvy investors are already
performing real-time advanced analytics on million of tweets
via Big Data technologies to capture the market moving
indicators.

12. For example, Bloomberg
(@TheTerminal) leverages Twitter
Data at scale to help quantify
market trends, calculate investor
sentiment on an individual company
level, and inform their users of
breaking business news & current
events as they unfold on Twitter.

13. In fact, such is the importance of tweets in the
financial market that Twitter’s official blog has
started a post series by compiling
“Finance Tweets of the Month”.

14. Let’s look at an example!

15. Elon Musk responds to short-sellers following Tesla record results
After Tesla’s earnings in April, he responded to short sellers in Tesla as the stock climbed.

16. Specific applications of Twitter
Data in
financial space
From fundamental analysis
and expert networks, to
event detection and
sentiment analytics.

17. Fundamental and
consumer analysis
Twitter Data can very well be used by
investors who are interested in long-
terms prospects of investments and
fundamental approach to security
valuations — including what’s fueling
product sales and earnings.

18. Digital expert networks
Various types of digital expert
networks can be built by utilizing
twitter data in conjunction with
other datasets. The specialization of
these networks can be wide --
ranging from smart homes and
crypto coins to Spanish politics and
European economy.

19. Consumer panels
Consumer panels can be formed
via Twitter users which can be
further utilized to derive insights
around various products,
services and events.
Example: consumer reaction to
United Airlines.

20. Detecting movements
in consumer behavior
Twitter conversations around brands
and products can be analyzed to
unveil early indicators of change in
broad consumer purchase intent for
a brand that could practically
influence equity price.

21. Connecting trending
business drivers with
stock investment
A crowd-sourced association
taxonomy of tags that parse the
world’s conversations on Twitter to
connect trending topics with
companies in which investment can
be done. The tags can be brands,
celebrity endorsers, topics, cultural
movements, and more — anything
that could influence the business.

22. Sentiment analytics

23. Sentiment analysis can use
natural language processing,
artificial intelligence, text
mining and computational
linguistics to identify the
attitude of a person with
respect to a topic.
It’s a crucial aspect of
behavioral finance, which
associates human emotion
(fear, greed, hope and
overconfidence, joy, etc.) with
market anomalies like sharp
rise or fall in stock price.

24. Depending on the
conversation
(cashtagged tweets) on
Twitter, sentiment
analytics can rate the
bull and bear market
on a specific scale.
1
Buy and Sell indicator
for stocks and ETFs can
be revealed by
analyzing large pool of
twitter users.
2
Influncers’ and
professional investors’
tweets can also reveal
the future movement
of the market. It can be
applied on equities,
ETFs, FX pairs, as well
as commodities.
3

25. The Bigger Picture
Machine learning techniques powered by Twitter Data that cross-
references plethora of other data sets—from maps to identify
users’ locations, to patent data, to stocks’ fluctuations—can
identify tweets and trends with impact, derived from
unconventional patterns and “clusters” of similar tweets.

26. A tool for short-terms trading as well
Twitter data is one small piece of a much bigger
mosaic. But many of the momentum-oriented short-
term traders are also buying and selling completely
based on social media.

27. PromptCloud’s Custom Web
Data Extraction Solution

28. PromptCloud, as a data solutions
company, can crawl and extract data
from Twitter at scale and deliver clean
data feeds at desired frequency
according to the pre-specified format.

29. Check out
our case
study on
Twitter Crawl
Click here

30. Looking to apply
Twitter Data in
your business?
Reach out to us at sales@promptcloud.com
to discuss your requirements.
www.promptcloud.com