At Bloom we’ve been super busy working hard to produce our brand new product – Whisper Wealth Management. This helps to bring the apparent unpredictability of social media and the science of the Stock Market together.
By cutting through the noise of social conversations and harnessing the important discussions, we can produce real-time analytics which reflect the activity occurring across the social sphere which is the most influential and has the potential to drive a change in the price of particular stocks and shares.
Using Whisper Wealth Management, we listened to the real-time social conversations surrounding Diageo and BSkyB via Twitter data feeds in the build-up to, during and immediately prior to this week’s regulatory announcements. We are able to compare how social conversations and market announcements react to and reflect each other. In addition, we are also able to gain a deeper understanding of the often overlooked social forces which can also guide share prices.
As the conversations progress and the announcements draw nearer, we are able to see the spikes in conversation regarding targeted keywords and changes in sentiment.
Using Whisper Wealth management we are able to instantly recognise unique properties of a company’s individual social profile and build an awareness of the changes in these properties which represent a significant shift. In comparing the conversations surrounding Diageo and BSkyB, we can already see that both companies are showing hugely different levels and patterns of activity. By understanding and monitoring each company’s activity on an individual level, we can recognise when unusual discussions are occurring. In this case around a new event, the announcement.
When comparing the daily activity in terms of tweets per minute in the BSkyB conversation, there is clear evidence that the regulatory announcement shifted the daily activity away from its expected daily pattern.
Analysing these shifts in activity, alongside the sentiment and mood of the discussion, is crucial in discerning where the conversation is going, and thus how the share price may be affected.
Whisper Wealth Management also allows us to identify exactly who the True Influencers of the conversation are. It also monitors the ability of these influencers to affect the opinion and mood of the overall discussion, which in turn has the potential to also affect the value of the company’s shares.
Considering these metrics with regards to the BSkyB conversation from 6am this morning, we can see that the sentiment of the influencers discussing the announcement is having a direct effect on the sentiment of the overall conversation. The ability for the influencers to affect the sentiment of the general conversation at critical times is crucial information to be aware of.
In addition to Whisper Wealth Management’s other functions, this helps us develop an awareness of how and why the share price is being affected by the Social buzz. This then extends our knowledge and understanding of all of the factors affecting the markets.
Whisper Wealth Management will be launched in Spring 2014. In the meantime, if you want to know more then give us a shout at [email protected] or 0113 887 8200