Two firms I have more than a passing relationship — Yahoo Finance and StockTwits — have formally announced a deal to place the curated StockTwit content directly onto Yahoo Finance. (I am a regular on Yahoo Finance, and FusionIQ offers several products in the stock twits marketplace).
Lets use Google as an example of what happens if you punch up any stock in Yahoo Finance. The left hand margin has a new entry called “Market pulse.” Select that and you pull a stream of all the comments from StockTwits that have the symbol GOOG in it. These include user generated charts, commentary, analysis and research — live and in real time.
This is a game changer versus the prior versions of online stock discussions. Three factors make this an enormous improvement over the static message boards of olde:
1) Social Network for Stocks: Stocktwits has all of the features of Twitter — you can see how many followers a person has, who they follow, how many tweets, etc. Hence, this introduces a “Wisdom of Crowds” factor into the previously anonymous, unreliable stock commentary.
2) Curated Messages: Much of the usual nonsense of stock comments — touts, pump-and-dump-ers, trolls, etc. have been removed. What you left with is a stream of honest commentary. Its the internet equivalent of peer review.
3) Embeddable Charts, Video: Chart.ly is a division of Stocktwits, and it has an incredibly user friendly technology that allows the easy sharing of charts and screencasts.
The bottom line is that StockTwits is a powerful platform that can b a disruptive technology. It has the potential to upend online stock discussions.
It may even help to identify the next generation of emerging analysts and fund managers.