When a tweet is more than just 280 characters and a snarky GIF, it can have a substantial impact on the stock market, and potentially your wallet. Over the last few months, tweets from Kylie Jenner, the Hollywood Reporter, Elon Musk, and Donald Trump have influenced the financial market by millions, and sometimes billions, of dollars.
If you’re looking for a new way to track these tweets in real-time, check out our platform, TweetTraders. This app seamlessly turns tweets about stocks or cryptocurrency into occurrences that you can act on in real-time that can lead to financial profits.
sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad.
— Kylie Jenner (@KylieJenner) February 21, 2018
On February 21, reality star and cosmetic line owner Kylie Jenner (@KylieJenner) tweeted to her 25.6 million followers that she is no longer using Snapchat after its redesign. Doing so is widely credited with decreasing the market value of Snap, Inc’s stock by about $1.5 billion by the end of the following trading day. Before this tweet, Jenner had been one of Snapchat’s most influential users, posting numerous stories a day, making her a major part of the platform.
Of the incident, Daniel Ives, Chief Strategy Officer and Head of Technology at GBH Insights told CNN, “We believe this is an overreaction as Wall Street is hypersensitive to the app redesign… (Jenner) carries a loud mouthpiece that speaks to today’s knee-jerk reaction in shares.”
Whether this tweet was an overreaction or not, Snapchat’s stock was down from $18.64 on February 20, to an intraday low of $17.05 on February 22, eliminating 8.53 percent of the total market value. The stock has yet to recover from the feedback from Jenner and other users, along with its redesign and negative user engagement trends, as it closed on October 2 at $8.18 a share.
The Hollywood Reporter
— Hollywood Reporter (@THR) July 27, 2018
On July 27, The Hollywood Reporter (@THR) tweeted to its 2.89 million followers that The New Yorker was about to release an article that features allegations from six women of sexual misconduct by Leslie Moonves, CBS Corporation Chairman, and CEO. News of this announcement and the impact it could have sent CBS’ stock down over 6 percent that day, eliminating $1.1 billion of market value without the article even hitting the press.
Once the article was published, CBS’ stock lost more than $2.2 billion, or 11.34 percent market value, in the first full trading day as it went from $57.42 a share to $50.91 a share. The stock has seemed to have bounced back, as it closed on September 28 at $57.45 a share.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
On August 7, Elon Musk, Cheif Executive of Tesla, tweeted to 22.8 million followers his surprise announcement to take the electric-car company market private. If this was achieved, it would be the biggest buyout in history. The impact of this tweet created $3 billion of market value in under 24 hours.
Movement within the stock market was almost immediate and mostly positive, which sent Tesla shares from $362.24 at the time of Musk’s tweet to a close of $379.57, giving it a gain of 4.78 percent. By the next morning, Tesla shares were at $379.83, representing an increase of 4.86 percent at the time of the tweet and a total estimated market capitalization of over $3 billion.
The Securities and Exchange Commission (SEC) ended up investigating Musk for this tweet, citing security fraud. The complaint, filed by the federal government, stated that “funding for this multi-billion dollar transaction has been secured, and the only contingency was a shareholder vote. In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source”. Ultimately, this tweet cost Musk $20 million and his seat as Chairman on Tesla’s board.
Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world. We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!
— Donald J. Trump (@realDonaldTrump) March 1, 2018
Since elected President, the market has adapted to tweets from Donald Trump (@realDonaldTrump). On March 1, Trump tweeted to his 54.9 million followers a statement regarding the foreign trade that had significant influence. Once Trump stated that steel and aluminum needed “fair, free and smart trade”, followed by alluding he’d announce tariffs on foreign imports, investors of US-based steel companies raised some eyebrows.
The next day, United States Steel Corporation, Nucor Corporation, Steel Dynamics, Inc., and AK Steel Holding Corporation gained a combined $2.4 billion in estimated market value. The biggest jump was from AK Steel, rising about 13.2 percent at intraday, followed by Nucor Corporation with a gain of 9.49 percent.
Using TweetTraders to Monitor the Market
It’s clear that celebrities, influencers, and major news outlets can impact stocks and the market value of various companies, and with TweetTraders, you’re able to access these tweets in real-time for a potential profit. All it takes is three easy steps. First, enter the tickers you want to track. Then, set up any number of keywords you want to use to trigger alerts. Finally, pick the type of alert you want to receive, whether it be a notification, text, or email. Once you do, you’ll be sent alerts when one of your keywords has been triggered.
Thanks to our succinct interface, users of TweetTraders can identify the influencers that are having the most impact on stocks and cryptocurrencies, and validate trading strategies depending on how these tweets gain leverage. And, since TweetTraders uses historical data down to the minute, users will experience an improved trade execution based on when to buy or sell, as it incorporates past trends.
To be one of the first to experience TweetTraders, sign up to become a beta user and enjoy the platform for free during this period. In return for being a free user, we’d like you to provide feedback on ways we can improve the app prior to its official launch later this year.
TweetTraders is powered by our proprietary platform here at Ennate called Kernel. It is a streaming data integration and rapid application development platform built by our engineers and developers to reduce the cost of developing new AI-centered applications to leverage multiple data feeds.
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