What is the value of being famous on Twitter? Two new stock indexes created by S&P Dow Jones Indices e Twitter can answer that question by measuring the performance of the hottest companies to investors, with an eye on social media influence.
The S&P 500 Twitter Sentiment Index will measure the performance of the top 200 companies within the S&P 500 who have “the highest sentiment scores” based on how social media users are discussing stocks, said the S&P Dow Jones Indices.
Index companies will be weighted by market capitalization. In addition, a second index will measure the performance of the top 50 companies with equal weight.
The new rates come at a time when finance tweets are on the rise on the San Francisco-based social media site, especially with the rise of cryptocurrencies.
Posts related to finances increased by more than 26% in 2020, compared to the previous year, said the Twitter.
S&P DJI said it will measure the sentiment of S&P 500 companies on Twitter on a daily basis, analyzing tweets that contain a “cashtag,” a stock quote feature that works similarly to hashtags, and scoring whether the tweets are more positive or negative. . Both indices will be rebalanced monthly.
Amazon.com, JPMorgan Chase and Meta Platforms, Facebook’s new name, will be among the companies listed on the Twitter Sentiment Index, said S&P DJI, who declined to provide the full list.
Reference: CNN Brasil
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