Social media is becoming increasingly important in the investment arena, as its impact on crowds’ sentiment grows. Market Prophit compiles and analyzes the social media commentary that's related to investing, and develops statistics that can tell users both crowd and expert sentiment. According to Market Prophit's Igor Gonta, a few of the stocks buzzing in the past few trading days include:
- Twitter Inc TWTR
- Allergan, Inc. AGN
- Actavis plc ACT
Gonta told Benzinga that, even with Twitter’s bond downgrade last week, "Market Prophits [are] bullish on the stock.” The company gives this designation to social media's most skilled traders, he said.
MKM: 10 beaten-down stocks that could gain 10% by year end http://t.co/ghbsJJo9FD via @barronsonline @ben_levisohn $BTU $LULU $TWTR
— Barron's (@barronsonline) November 17, 2014
Top 5 equities traded by $AMTD clients on Friday: $BABA $AAPL $TWTR $GILD $VA
— Nicole Sherrod (@TDANSherrod) November 17, 2014
Allergan and Actavis, meanwhile, were subject to much discussion, as the former announced it had accepted a $66 billion takeover bid from Actavis.
While the sale put an end to hostile offers from both activist investor Bill Ackman (of Pershing Square) and Valeant Pharmaceuticals Intl Inc, the crowd still appears to be bearish on Allergan and Actavis, Gonta said. Social media's higher-tier users, though, remain bullish.
Crazy to think that $VRX will have more income from the $ACT buyout of $AGN than they made from their actual business in 3Q. $PSH #PSCM
— The Skeptic (@TheSkeptic21) November 17, 2014
With Actavis $ACT - Allergan $AGN vs Valleant $VRX-Allergan $AGN, it feels like the good guys won R&D !
— Nicole Sinclair (@nicoleusinclair) November 17, 2014
Top Performing Users
Market Prophit also analyzes users' performance to identify the top calls based on the “returns” of stocks they've recently tweeted about. Gonta shared four of the best calls:
UBS AG UBS
Long $ubs ... New pos ........... added to $lly
— Paul VanHouten (@turtletrader59) November 11, 2014
China Hgs Real Estate Inc HGSH
$HGSH early stage breakout in the works.... http://t.co/1ocSFJ5Nxw
— stt2318 (@stt2318) November 12, 2014
Cliffs Natural Resources Inc CLF
11-10-14: Daily Covered Call & Call Spread Report $CZR $CLF $CSIQ $ATVI $INTC $NVDA and more: http://t.co/9hlXG1ymTZ
— Ophir Gottlieb (@OphirGottlieb) November 10, 2014
Market Vectors-Coal ETF KOL:
NEW POST: The Quest to Find Footing http://t.co/8rIjWjf1XJ $BTU $KOL $GDX $GDXJ $XME
— Chess (@chessNwine) November 10, 2014
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