Oct 19, 2011

Posted by in Stock Reports | 0 Comments

Internet Stocks

Investing in Internet Stocks

Internet Stocks

Once upon a time, in a land filled with stock tickers that we all occupy…there are many social networking communities assisting in creating awareness in internet stocks in many different directions…Let us now take a look at what we call New World Order in the marketing arena.

Twitter (http://twitter.com) spinoffs like StockTwits (http://stocktwits.com), FINIF (www.finif.com) and Stocial (www.stocial.com) have become incubators for stockpickers, and barometers of intraday trends. Okay, much of the tweet stream is market noise, or the usual misdirection from the misguided. Regardless of technology, that’s never likely to change.

Internet Stocks have grown ten-fold over the past several years thanks to social network communities!

But there must be some value to them, because the five-year-old Twitter ecosystem and its internet stock-oriented forums have taken off this year. Twitter itself now counts more than 100 million active users and, contrary to the law of large numbers, another 26 million tweepers (Twitter followers) are expected to start tweeting by years’ end. Tweet volume has doubled in 2011, to about a billion tweets a week-not all of which can be attributed to Ashton Kutcher and Demi Moore.

Key to the usage surge is a simple-but-elegant feature of StockTwits that lets subscribers follow conversations by ticker, not just by tweeter. StockTwits tweepers add a “$” to the ticker of the company they are discussing to their messages, making it easy to round up all the views fit to print on, say, Apple by searching “$APPL.” Even privately traded companies, like Facebook ($FBOOK), get tags; and the dollar-sign plus ticker search on the Twitter platform pops up a stream of comments on a given internet stocks.

Internet Stock

Other providers, such as Stocial (www.stocial.com), have been able to stand on StockTwits’ shoulders and build similar ecosystems. Still in beta and available by invitation only, Stocial’s formal rollout is expected in a month. The site aggregates Web news, market data and member sentiment on individual internet stock tickers via member tweets on Twitter; the weighs the relevance of these inputs through natural language analysis, a computer-generated means of understanding human language.

Stocial relies on the same “$” ticker tag as StockTwits to identify stocks and other market-related content over Twitter; members can chooses tweets as they stream, or select them by comment-relevance/popularity. Stocial charts price spikes against spikes in tweet volume intraday, to identify which way U.S.-listed stocks are trending.

Trending sentiment definitely has an impact on stocks and the market in general. But don’t confuse cause and effect. Point being Stocial CEO Fahad Kamr guesstimates that about a quarter million Twitter users tweet about the stock market on a regular basis. That certainly sounds like a lot, but it the big picture it is still only a very small scale of overall number of traders and investors in the market and that does not include the big money institutional piece of the pie controlling the lion’s share of the volume.

The StockRunway Summary: The release of tweeting trends involving internet stocks could help inform you-but weigh specific trade advice carefully. There may be collective wisdom in crowds, but most of us individual crowd members don’t know what the hell we’re talking about. That doesn’t stop us from tweeting about it. Take it for what it may be worth while doing your own due diligence always!

Until next time…The Captain is signing off for now…Trade Smart, Use Discipline and Stay onboard the StockRunway for stock market data that makes a difference in YOUR portfolio!

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