SEC "Likes" Social Media

If there’s one person in the world who gets the intersection of the social web with investing, it’s Howard Lindzon. So when the SEC ruled Tuesday that company postings on sites like StockTwits/Facebook/Twitter were as good as news releases and company websites (as long as investors were aware of the use of those sites), I immediately turned to Howard for his thoughts. And sure enough, he had a great post today.

One of the most powerful points he made spoke to the fine line that StockTwits walks as a finance social site. They carefully split the difference between 1.) allowing managed /curated content, tools and control necessary for compliance and governance and 2.) enabling the spontaneous, multi-source, lighting-quick conversation paradigm that makes social media so incredible. As he put it:

Rules matter and if they are clearly stated and thoughtfully enforced, communities can thrive (learn, mentor, make a little coin). We [ed. StockTwits] added some basic financial features like the ability to create disclosures/tracking and the removal of the delete function to ensure trust is at the forefront.  No matter what others call us or think, Stocktwits is a NEWSWIRE. Information is flowing from one to many, all day, every day and it is full of context.

The social web will continue to grow and the power of the content being created on that web will continue to impact even the most regulated industries. How other platforms can adapt and fuel that change, like StockTwits has done, will be fascinating to watch.

Check out the full blog here.

Stocktoberfest: Social Finance Conversation on Tap

Last year, Gnip and StockTwits partnered in order to bring this incredible social finance conversation to market – in both real-time and historical products. Given that relationship, we’ve worked closely with StockTwits and have been consistently impressed with how the trading community platform they’ve been building has progressed.

So this last week it was incredibly exciting to attend Stocktoberfest on Coronado Island, and to watch other attendees get a look into just how far this awesome product has come. What really sunk in for me personally was the extent to which the platform has evolved and how leveraged it now is.

In order to get a platform to actually work, you need a few things: community critical mass (check!), producers (check!), and consumers (check!). StockTwits has done an incredible job engaging the community directly on-site, and the latest API allows app developers to weave highly focused (by equity or currency) conversations, bi-directionally, into their apps in real-time.

From a community standpoint, checkout what StockTwits has pulled together:

  • 50+ activities (messages) posted per minute during market hours
  • 70+% of platform activities are “native” to the StockTwits platform
  • 600+ charts shared each day
  • 3000+ symbols covered each day
  • 6 million+ investors and traders read StockTwits content each month across distribution network and API partners
  • average stocktwits.com user spends 26 minutes on-site per visit
  • 200K+ Registered users
  • 400K+ Messages a month
  • 70+ Million API requests per month
  • 26% of StockTwits user access via mobile

The Financial charting and equity analysis ecosystem is vast, and because of the work StockTwits has done, that ecosystem can incorporate relevant social conversation directly into platforms and products. By doing so, players in this space can take advantage of the community StockTwits has already built, which lifts their tools, products, and platforms into social. Building community, whether focused or broad, is obviously a hard nut to crack. The more integrations you have, the more the overall community benefits; everybody wins. ChartIQ is one beautiful example of a product leveraging the StockTwits platform that proves this point.

I left Stocktoberfest giddy over where this stream is now. Seeing, and talking to, so many of the StockTwits platform partners was just awesome!

The impact “social” is having across the Finance space is tremendous; as is StockTwits’ role in it. We’re excited for the next few months and what our continuing work with them will bring.

Stage for Stocktoberfest

Using Social Data to Predict Financial Markets

Seth McGuire, Gnip’s director of assets and financial technology, was on both Fox Business’ After the Bell and Bloomberg’s Money Moves to discuss how social data is being used by hedge funds as another layer of data to analyze the markets. Gnip is currently working with about a dozen hedge funds that have over $1 Billion AUM

Watch Seth on After the Bell

Watch the latest video at video.foxbusiness.com

Watch Seth on Money Moves

Launching Gnip MarketStream & Partnership with StockTwits

While the market has been on its roller coaster ride across the past month, Gnip has kept its collective head down and stayed busy on behalf of our Investment Management clients (hedge funds, HFTs, asset managers, etc.). That hard work has paid off and we have two exciting announcements to make today.

  • Launch of Gnip MarketStream: Our hedge fund clients have been quite vocal in their desire for a package incorporating the most relevant social data streams into a single low-latency, high-volume solution. We’re proud to answer their needs with the launch of Gnip MarketStream, a realtime data solution that packages the incredibly rich and broad “voice of the market” Twitter stream with the uniquely deep and targeted “voice of the trader” StockTwits stream.
  • Premium Partnership with StockTwits: An integral component of the Gnip MarketStream is StockTwits social media data. We’re thrilled to announce this partnership with StockTwits, the leading realtime financial platform for the investment community and creator of the $(TICKER) tag. The StockTwits stream is a curated, defined-demographic, realtime social data stream focused on investment decisions and analysis. Gnip now provides streaming access to the full StockTwits firehose of social data, and offers access to historical content as far back as 2009.

While the use of social media data by the investment community has included use of this data in news analysis and equity research, the primary adoption of this data across the last six months has been as a trading indicator. By combining the strengths of both the Twitter stream and the StockTwits stream, Gnip MarketStream provides investment professionals unparalleled access to relevant social data at time when social media has become an increasingly vital channel for news and market sentiment.

For more information about Gnip MarketStream or StockTwits data, contact trading@gnip.com.