New findings about social networking site
Research suggests that Twitter is doing well at generating money for many of its users.
A PhD student has conducted a comprehensive study at Technical University of Munich which shows investors following stock market tweets could gain an average return rate of 15 per cent. Tweets totalling 250,000 were sent over a six-month period for analysis by Timm Sprenger. He predicts Twitter will offer even more specialised information to users in the future
Thousands of stock-related messages are sent every day via tweets. Typically, investors mark tweets according to company stock symbols.
The student found what he describes as a "striking co-ordination" between what Twitter was saying about shares and other information from investors and analysts He then discovered that most valuable information was retweeted, reaching a wider audience.
A beta version of TweetTrader.net, where the real-time sentiment for individual stocks can be accessed, was created after the study. Mr Sprenger conducted similar research using Twitter on the federal elections in Germany last year. He was able to predict the final results for each political party to within 2 per cent of the votes they received.
Twitter already records the most discussed subjects on the micro-blogging platform through its Trending Topics feed and Mr Sprenger concluded that it will increasingly offer more specialised versions of the service.