Digital Influence Weekly - Financial Followers Flip for Findings and Foursquare

by Digital Influencer, 4/15/2011 3:48:17 PM | with 0 comments
April 16th is Foursquare Day. That’s right, a day just for Foursquare. How will you celebrate? Well if you don’t have Foursquare downloaded to your mobile device yet, you can always learn to play regular Foursquare.

And now to the Digital Influence Weekly…

I’ve been seeing some interesting postings between how the financial business world and the social media world are interacting that I think you might enjoy.

It’s not exactly new that the financial world uses social media to conduct research and spread information, but an interesting and relevant article came up yesterday from Seeking Alpha, a popular online stock analysis and intelligence news site and social network. It discusses a study on how social media and Seeking Alpha serve as “predictors” for stocks and earnings.

Some key findings include:

- Social media sentiment extracted from Seeking Alpha articles has a stronger association with contemporaneous and future stock returns than traditional media sentiment in the Wall Street Journal.
- Social media sentiment embodied in Seeking Alpha articles is more successful at predicting future earnings surprises.

Read the rest of the Seeking Alpha article for more information. Many respondents disagree with the research, but most comments on this site usually are in disagreement with the article they comment on. However, like with any financial intelligence, it’s up to the user to decide whether to act on it or not.

On the lighter side of social media and finance, the Wall Street Journal is on Foursquare. Why in the world would the WSJ team up with Foursquare? Because “The Wall Street Journal wants to help you explore New York.” They offer tips on activities and locations around the city as well as exclusive badges that you can earn. I think it’s a fun idea and a good one, because honestly, their longtime pay structure for online content turns away so many new readers who aren’t likely to pay for a print subscription and have no real need to purchase an online subscription since they’re already getting news from elsewhere.

So do you plan on interacting with others online regarding financial intelligence?

Full Disclosure: My older brother is a contributor for Seeking Alpha. However, I’ve been aware of Seeking Alpha since long before he began contributing. He is in no way connected to the article mentioned above. Plus I never really understand what he’s saying.

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