This document discusses using social media sentiment analysis to analyze stock market movements. It provides a case study of analyzing sentiment about Research In Motion (RIM/Blackberry) on Twitter around announcements of executive resignations. It found spikes in negative sentiment before RIM's stock price declined and an unexpected positive sentiment shift shortly after the market opened as the price continued falling briefly. DataSift can aggregate social media data by location, time, author influence, and other categories to provide insights.

1. Social Sentiment
& Stock Markets
The canary in the
coalmine
Research In Motion
Case Study

2. Testing the correlation between Public Sentiment on
Twitter and Stock Price
DataSift provides funds
with new data and
insights to drive trading
decisions
Sentiment and Semantic
analysis can be used to
identify real-time trends
and swings in sentiment
towards stocks, industries
and news.
Example correlation between
negative spike in sentiment and
price decline for DJI index-price on
17-Jan-2012
Social Media Content Analysis
Dow Jones 2012-01-17 (15 minute time frame)

3. Case in Point: Research-In-Motion (Blackberry)
Jan 21 - RIM’s co-CEOs announce resignation
Mentions of RIM surge on
Announcement
Twitter
of
Resignation
Sentiment of Tweets mostly
pessimistic
Spike in negative sentiment
RIM Social Media Content (1 hour time frame)

4. A Global Topic of Conversation
Which countries did the Tweets come from?
Canada
30%
UK
20%
USA
30%
APAC
10%

5. Markets Open – as expected, RIM Tumbles
RIM Social Media Content (15 minute time frame)
① Surprising spike of
positive sentiment at
beginning of trading
hours (14:30 UCT)
②
② As expected, RIM stock
price drops on market-
opening
①

6. Stock price declines for 20 mins, but social sentiment turns-around
– 5 minutes later, stock reaches support level
1. As expected Stock
Declines
2. Sentiment Inflection
Point
Sentiment on Twitter
① Stock
declines switches to positive value
around 14:45(09:45 ECT),
despite price still falling.
5 min latter the stock price
reaches the support level at
15.88.
3. Support Level
③ Support
Tested
② Sentiment
Inflection Level
This level is tested again
Point Tested
after 15:20 and holds, as
the sentiment of social
media content remain
positive.

7. DataSift – a powerful platform for creating insights from
social media
To help make sense from social data, DataSift can aggregate data by:
Geographic location
Timezone
Author's social influence Social media platform
(Klout score)
Gender
Number of followers
and up to 160 other categories...
Language

8. Social Influencers were good canaries
RIM Social Media Content (Klout Score above 40)
8

9. To learn more
visit
www.datasift.com/
finance