Market Overview

How LikeFolio Predicted Good News For Bebe Stores

How LikeFolio Predicted Good News For Bebe Stores
Related BEBE
Earnings Scheduled For September 1, 2016
How Far Is Wall Street Behind The Consumer?

Andy Swan is a three-time financial technology entrepreneur. He co-founded his most recent company LikeFolio in 2013 with his brother.

LikeFolio finds trends in publicly-traded companies by analyzing social media and helps investors find companies they want to invest in by highlighting which ones they capture, post and tweet about the most.

Swan recently joined Benzinga’s #PreMarket Prep to talk about some of the unique things LikeFolio is finding with the social media data, including an indicator bebe stores, inc. (NASDAQ: BEBE) earnings.

Related Link: Why This NYSE Floor Trader Is Warning Against Transocean

LikeFolio Focused On Teen Retailers

Last November, Swan explained that his team started looking at the teen retailers like Abercrombie & Fitch Co. (NYSE: ANF), Aeropostale Inc (NYSE: ARO) and, of course, bebe.

The team noticed that all of those companies were down compared to the year prior, in terms of both number of mentions on social media and sentiment users had toward them. Except for one: bebe.

“We noticed there that actually volumes were up. The number of people talking about purchase decisions at the stores was up and the overall sentiment was much higher than the rest of the group,” Swan said.

LikeFolio In Action

So, the LikeFolio team put out a note on that data and suggested that things may not be as bad for the stock as it looked, adding that it might be having a better-than-expected quarter.

Earlier this week, bebe reported an 8 percent gain in its same-store sales. Shares jumped almost 20 percent. Swan said it was cool to see the confirmation of the LikeFolio data.

“Not every piece of data is useful,” he said. “But when you can find a signal like that, which is what we aim to do — sort of outlier cases — there is value.”

Swan also talked about, Inc. (NASDAQ: AMZN) and Tesla Motors Inc (NASDAQ: TSLA).

Check out his full interview here:

Don’t forget to tune in to Benzinga’s #PreMarket Prep broadcast Monday-Friday 8-9:45 a.m. ET for a live, interactive morning show with veteran traders and featured finance industry experts ready to answer your questions for the trading day.

Posted-In: abercrombie & fitch Aeropostale Andy Swan Bebe bebe StoresTop Stories Exclusives Interview Best of Benzinga


Related Articles (AMZN + ANF)

View Comments and Join the Discussion!