(Reuters) – What is the worth of being Twitter-famous? Two new inventory indexes created by S&P Dow Jones Indices and Twitter will unravel the thriller on Thursday, measuring the efficiency of the buzziest firms for traders with a watch on social media affect.
Twitter has lengthy performed a central position for traders and merchants to share inventory ideas, sustain with breaking firm information and observe the most recent musings from CEOs like Tesla’s Elon Musk, who lately polled his 64 million followers on whether or not he ought to promote 10% of his Tesla shares.
The S&P 500 Twitter Sentiment Index will measure the efficiency of the highest 200 firms inside the S&P 500 which have “the best sentiment scores,” based mostly on how the social community’s customers are discussing the shares, stated S&P Dow Jones Indices.
The businesses inside the index will probably be weighted by market capitalization. A second index will measure the efficiency of the highest 50 firms with equal weight.
The brand new indexes come as tweets about finance are rising on the San Francisco-based social media website, significantly with the expansion of cryptocurrencies. Finance-related conversations had been up greater than 26% in 2020 from the earlier 12 months, Twitter stated.
S&P DJI stated it should measure the Twitter sentiment of S&P 500 firms every day by analyzing tweets that comprise a “cashtag,” a inventory ticker function that works equally to hashtags, and scoring whether or not the tweets are extra constructive or unfavourable. Each indices will probably be rebalanced month-to-month.
Amazon.com Inc, JPMorgan Chase & Co and Meta Platforms Inc, the brand new identify for Fb, will probably be among the many firms within the Twitter Sentiment Index, S&P DJI stated, although it declined to supply the complete record.
(Reporting by Sheila Dang in Dallas; Modifying by Leslie Adler)