Analyzing Social Media Sentiment On Peabody Energy, Netflix And Apple
As social media continues to gain relevance in the investment world, knowing what the crowd is saying is becoming increasingly indispensable.
Market Prophit compiles and analyzes investing-related social media commentary and develops statistics that tell users what both the crowd and experts (or Market Prophits) are thinking.
Benzinga spoke with Igor Gonta, the company’s CEO, on Thursday. Gonta provided an updated summary of what’s going on in the Twitterverse.
Old King Coal
Gonta first looked into coal. “On the ‘old’ economy front, the coal industry has been hurting for a while and [shows] no signs of letting up today,” he explained. Peabody Energy Corporation (NYSE: BTU) is down substantially as of Thursday, after announcing layoffs. “This following a downgrade of the stock a few days ago, it's down big again today,” Market Prophit’s CEO added.
“The Crowd sentiment is squarely bearish on this stock, while the Market Prophits – who also were bearish like the Crowd – have recently turned to a more neutral stance with respect to sentiment,” he explained.
The New Monarchs
On the other hand, the "new" economy is alive and well, Gonta assured. Netflix, Inc. (NASDAQ: NFLX)’s stock rocketed higher on its stock split plans. “Crowd sentiment is bearish after the runup, while Market Prophits are bullish and started diverging from the Crowd on June 2 before the huge runup,” the CEO expounded.
Gonta then went into the largest company in the world, Apple Inc. (NASDAQ: AAPL). “We haven't checked in on Apple in a while, so we thought that they just had their developer conference, it would be a good time to see what the sentiment was. The Crowd is bullish on AAPL, while the Market Prophits are bearish. The spread between the two is very large and they started to diverge on May 29,” Gonta concluded.
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