Tag Archives: twitter

JPMorgan: Twitter Hashtag Trends Against Bank

According to Bloomberg,

JPMorgan Chase & Co., the target of at least eight Justice Department investigations, was mocked and taunted by Twitter users after asking followers to send questions to an executive using the hashtag #AskJPM.

JPMorgan Headquarters (Bloomberg)

JPMorgan Headquarters (Bloomberg)

The online forum, which the bank canceled late yesterday, was intended in part to give college students an opportunity to communicate directly with a senior executive, said Brian Marchiony, a spokesman for the New York-based company.

“#Badidea! Back to the drawing board,” the bank posted less than six hours after its original post, which drew more than 6,000 responses from users in that span, according to social media tracking service Topsy.

The “Snarkpocalypse,” as @ReformedBroker dubbed it, started after the bank’s official Twitter account posted a call for questions at 1:26 p.m. in New York for investment bank Vice Chairman James Lee, using #AskJPM.

JPMorgan, the biggest U.S. bank, faces criminal probes including one into possible bribery in Asia and another examining its relationship with Ponzi scheme operator Bernard Madoff. The firm also has been negotiating an agreement with the U.S. to resolve multiple mortgage-bond probes, and two ex-employees were indicted for allegedly trying to cover up a record trading loss last year.

JPMorgan’s call for questions provoked jeers from Twitter users, who responded with sarcastic posts about the bank’s mounting legal woes.

“Can I have my house back?” @AdamColeman4 posted. “Is it true ‘JPM stands for ‘Just Pay More’?’’ asked @SconsetCapital.

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Twitter Soars and U.S. Stocks Drop as GDP Fuels Fed Concern

U.S. Stocks Fall as GDP Fuels Stimulus Concern; Twitter Soars (Bloomberg)

U.S. Stocks Fall as GDP Fuels Stimulus Concern; Twitter Soars (Bloomberg)

According to Bloomberg, U.S. stocks fell, dragging the Standard & Poor’s 500 Index to its biggest loss in two months, as speculation the Federal Reserve may scale back stimulus amid faster-than-estimated economic growth overshadowed a move by the European Central Bank to cut a key interest rate.

Twitter Inc., which raised $1.82 billion in its initial public offering, rallied 73 percent in its debut. Qualcomm Inc. dropped 3.8 percent after the largest maker of smartphone chips predicted quarterly sales that missed analysts’ estimates. Whole Foods Market Inc. slumped 11 percent after cutting its profit forecast. J.C. Penney Co. jumped 5.6 percent after posting its first rise in monthly same-store sales in two years.

The S&P 500 fell 1.3 percent, the most since Aug. 27, to 1,747.15 at 4 p.m. in New York. The Dow Jones Industrial Average (INDU) slid 152.90 points, or 1 percent, to 15,593.98. The Nasdaq Composite Index dropped 1.9 percent for the biggest decline in a month. About 7.6 billion shares changed hands on U.S. exchanges, the busiest trading since Sept. 20.

“The market will be volatile,” Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co. in Bryn Mawr, Pennsylvania, said in a phone interview. His firm oversees about $7 billion. “You had some good economic news today and we’ll see what the payrolls numbers are tomorrow. The fear is that with better-than-expected economic numbers, tapering will commence sooner rather than later.”

The Dow climbed to a record yesterday and the S&P 500 (SPX) closed at a one-week high as Fed officials said economic weakness warrants continued stimulus from the central bank. The broad gauge of American equities has rallied 23 percent this year, challenging 2009 for the best annual gain in a decade, as corporate earnings beat estimates and the central bank kept interest rates low to spur economic growth.

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Twitter’s IPO May Value It at $11.1 Billion

Source: Bloomberg News

Source: Bloomberg News

According to The Wall Street Journal, Twitter Inc. on Thursday said it would price its shares at $17 to $20 in an initial public offering, valuing the messaging service at up to $11.1 billion, a number seen as conservative even for a company facing widening losses.

The proposed market value would makeTwitter worth nearly twice as much asGroupon Inc., GRPN +3.11% the daily deals company, but less than one-tenth of social-networking rival Facebook Inc.

As proposed, Twitter’s IPO could raise as much as $1.6 billion for the company, whose service has grown to more than 230 million monthly active users since the first “tweet” was sent in 2006.

Analysts said the company might yet raise the target price. If the offering is well received, it could signal that investors are willing to wager on a big future for social-media companies even in the absence of profits, which Twitter doesn’t have. The deal comes amid the best year for U.S.-listed IPOs since 2007 based on number of deals.

With a price range established, Twitter can now begin to pitch investors who would have access to the starting IPO price. The company is expected to settle on a final price on Nov. 6, according to a marketing document reviewed by The Wall Street Journal. Twitter shares would then begin trading the next day on the New York Stock Exchange NYX -0.12% under the symbol TWTR.

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A Hedge Fund Dogfight, Live, Mesmerizes Wall Street

dbpix-icahn-ackman-articleInlineFor a half-hour on Friday afternoon, the eyes of Wall Street were not on the usual fixations, like the fiscal talks in Washington, or Apple’s earnings or a potential takeover of Dell.

Instead, they were turned to the cable channel CNBC, watching verbal fisticuffs that could rival anything on reality TV, a spat between two hedge fund magnates with a decade-long grudge against each other.

Nominally, the two titans, Carl C. Icahn and William A. Ackman, called into CNBC to discuss their contrasting views on Herbalife, a nutritional supplements company. Instead, they slung invective back and forth in a fight that riveted traders and Twitter alike.

How sophisticated was the debate?

“He’s like a crybaby in the schoolyard,” Mr. Icahn thundered in his thick Queens accent. He later declared that his foe was “the quintessential example that if you want a friend on Wall Street, get a dog.”

“This is not an honest guy who keeps his word,” Mr. Ackman later shot back. “This is a guy who takes advantage of little people.”

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Intrepid traders and Investment Managers Have Begun Using Social-networking Data in Their Trading Strategies



As reported by Wall Street Journal’s Michelle Price:

Ever on the lookout for new ways to make money, intrepid traders and investment managers have begun using social-networking data in their trading strategies.

Some firms are experimenting with messages on Twitter. The scale and velocity of data produced by Twitter, with its 175 million users, has struck some traders and academics as a potential goldmine of information.

The idea isn’t revolutionary. News-led trading strategies use algorithms to scan news updates and use that information to trade automatically.

Although tweets are an unstructured cacophony of thoughts, some studies have claimed that the data can be sifted for trading signals. A ‘buy’ trading signal might include positive chatter about a company, or broadly positive sentiment towards a sector.

Studies by Mines ParisTech and the Technische Universität München found a correlation between Twitter traffic and trading patterns. Using methods derived from computational linguistics, the TUM researchers found a correlation between the content of 250,000 stock-related Tweets and movements in the market. The study showed the level of bullishness detected in the sampled stock-related Tweets was associated with “abnormal” returns in some stocks, and that changes in message volume could predict next-day trading volume.

Another study, published by the University of Manchester and Indiana University last October, focused on the relationship between broad Twitter sentiment and market movements. The researchers argued that by reading and categorizing millions of Tweets on how individuals were feeling into one of six mood states—including calm, alert, sure, vital, kind and happy—it is possible to predict with 88% accuracy how liquid stocks will behave.

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