StockTwits

StockTwits is a social media platform designed for sharing ideas between investors, traders, and entrepreneurs.[1] The company was co-founded by Howard Lindzon and Soren Macbeth in 2009. The company received the first Shorty Award in the 2008 finance category. Time magazine listed the company as one of its 2010 "50 best websites." The company was also named one of the "top 10 most innovative companies in finance" in 2012 by FastCompany. In June 2013, StockTwits had 230,000 active members. By mid-2019, that figure had increased to 2 million, and the company premiered free online trading via an iOS app.[2]

StockTwits
Typewebsite
Industryinternet
Founded2008
FounderHoward Lindzon and Soren Macbeth
Headquarters
New York
,
USA
Area served
World wide
Websitestocktwits.com

History

The idea for the company came from a 2008 blog post where Lindzon suggested that Twitter would be great for stocks and markets even though he once passed on the opportunity to invest in the company.[3] Lindzon teamed up with Soren Macbeth to form the company in 2009. The company utilized Twitter's application programming interface (API) to integrate StockTwits as its own "highly graphical platform of market news, sentiment and stock-picking tools."[4] StockTwits utilized "cashtags" with the stock ticker symbol, similar to the Twitter hashtag, as a way of indexing people's thoughts and ideas about a company and the stock.[5]

StockTwits received the first Shorty Award in the 2008 finance category.[6][7]

Incorporation of the company Abnormal Returns in 2010 boosted the content available to StockTwits subscribers.[8]

StockTwits began offering a service in 2011 that allows companies to manage and monitor information within the service.[9] Lindzon says it also allows a company to "monitor discussion about the company."[9]

Time magazine listed StockTwits as one of its 2010 "50 best websites."[10] StockTwits was named one of the "top 10 most innovative companies in finance" in 2012 by FastCompany.[11]

As of June 2013, StockTwits had raised $8.6 million in venture capital but has not yet made a profit.[12] Fifty percent of the company's revenue comes from financial data sold to clients including Bloomberg L.P. and Google.[12] Lindzon believes a "cultural change" is needed for the large financial institutions to embrace this technology and that change may take as long as five years.[12]

In June 2016, StockTwits Inc. announced that Ian Rosen, a co-founder of Even Financial and former general manager at MarketWatch as Chief Executive Officer.[13]

In January 2017, StockTwits Inc. acquired Investing Discovery Platform SparkFin Inc.[14]

Use

In 2013, StockTwits had over 230,000 active members; by 2020 that number had increased to 3 million. Lindzon encourages new traders to spend time on StockTwits learning the language.[15] He says that "You don’t learn Spanish in one day, and you’re not going to learn how to invest in stocks in one day. Treat it like a language."[15] Lindzon coauthored the book The StockTwits Edge: 40 Actionable Trade Set-Ups from Real Market Pros with Philip Pearlman and Ivaylo Ivanoff to assist new users with getting the most out of the service.[16]

StockTwits allows users to communicate to Ticker Streams in real time with the use of cashtags. Users are also able to communicate directly using the "@" symbol before a username, a feature seen on Twitter.

Content featured on StockTwits can also be shared to the StockTwits extended network which includes sites such as Yahoo Finance and CNN Money. Users also have the ability to share content to their personal Twitter, LinkedIn and Facebook accounts.[17]

As of 2012 StockTwits has an open API allowing other sites such as TradingView, LikeAssets and HootSuite to integrate their users with StockTwits.[18]

Controversy

Twitter incorporated the cashtags into their platform in 2012 effectively "hijacking" the StockTwits idea.[5] In response to this announcement, Lindzon blogged that "It's interesting that Twitter has hijacked our creation of $TICKER i.e. $AAPL".[5] He went on to note that "You can hijack a plane but it does not mean you know how to fly it."[5] Lindzon sold all of his Twitter stock in 2012 as a result of this controversy.[19]

References
  1. Huang, Daniel (21 April 2015). "Retail Traders Wield Social Media for Investing Fame". Wall Street Journal. ISSN 0099-9660. Retrieved 18 May 2018.
  2. "Stocktwits Archives". Finovate. Retrieved 29 June 2020.
  3. Ryan (22 February 2013). "Howard Lindzon CEO and Co-Founder StockTwits". zurb.com. Retrieved 9 May 2013.
  4. Hogan, Mike (8 October 2011). "Tell Us How You Feel About Stocks". Barron's. Retrieved 8 May 2013.
  5. Wong, Matthew (17 August 2012). "VCs and Start-Ups Pin Their Hopes on Pinterest". The Wall Street Journal. Retrieved 28 May 2013.
  6. staff (11 February 2009). "The year's best producers of short* content". Shorty Awards. Retrieved 29 May 2013.
  7. Van Buskirk, Eliot (12 February 2009). "The Shorty Awards: Why Nerds Hate Twitter". Wired. Retrieved 29 May 2013.
  8. Macsai, Dan (June 2010). "Trading Places: Inside the Internet's first financial-news network-a mashup of CNBC, the Bloomberg terminal, and the real-time Web". Fast Company. Retrieved 29 June 2013.
  9. Geron, Tomio (17 August 2011). "StockTwits Grows With Wild Stock Market". Forbes. Retrieved 8 May 2013.
  10. Staff (25 August 2010). "50 Best Websites 2010". Time. Retrieved 28 May 2013.
  11. Staff. "Top 10 most innovative companies in finance". Retrieved 28 May 2013.
  12. Rose, Sally (4 June 2013). "This StockTwit is no fool". The Australian Financial Review. Retrieved 8 June 2013.
  13. Katie Roof (6 July 2016). "StockTwits raises funding, gets new CEO". Tech Crunch. Retrieved 7 July 2016.
  14. Editorial, Reuters. "BRIEF-STOCKTWITS TO ACQUIRE INVESTING DISCOVERY PLATFORM SPARKFIN". U.S. Retrieved 18 May 2018.
  15. Stalter, Kate (22 September 2011). "Capture Price Growth with These 6 Stocks". Forbes. Retrieved 8 May 2013.
  16. Lindzon, Howard; Pearlman, Philip; Ivanhoff, Ivaylo (2011). The StockTwits Edge: 40 Actionable Trade Set-Ups from Real Market Pros. Wiley Trading. ISBN 978-1118029053.
  17. staff (27 March 2012). "StockTwits Streams Now on MSN Money!". StockTwits. Retrieved 21 June 2013.
  18. Staff. "StockTwits App Integrations". StockTwits. Retrieved 21 June 2013.
  19. Taylor, Colleen (1 July 2012). "Howard Lindzon on Why He Sold His Twitter Stock, And The 'Hijack' Of StockTwits' Cashtags [TCTV]". TechCrunch. Retrieved 9 May 2013.

Further reading
  • Lindzon, Howard; Pearlman, Philip; Ivanhoff, Ivaylo (2011). The StockTwits Edge: 40 Actionable Trade Set-Ups from Real Market Pros. Wiley Trading. ISBN 978-1118029053.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.