Nasdaq listed multi-asset brokerage TD Ameritrade has just announced the release of an advanced tool for social media sentiment analysis. The company has enabled a new layer within its thinkorswim platform technology that allows traders to delve deep into a company’s products before taking a decision on how to trade a stock.
TD Ameritrade has gone one step further than the typical social media Analytics tools and is offering a sentiment analysis on certain products of a list of companies. The new layer of technology effectively measures consumer sentiment towards a given product, thereby allowing much more in-depth analysis of a company’s prospective earnings.
Social media sentiment analysis and volumes of certain brands are helpful for investors when taking decisions. If a trader knows the sentiment of consumers towards a new Apple iPhone release or a new Disney movie project, the revenues of a given company could be projected much more accurately.
Social sentiment on Disney's products as compared to revenues, Source: TD Ameritrade
The tool is much more focused on the real economy and on 'Main Street' with traders being able not only to analyze the trends in sentiment towards certain products, but also view the income share that such products comprise in the company’s balance sheet.
The new social sentiment analysis solution is a result of the collaboration of TD Ameritrade with social data firm LikeFolio. The new tool builds on the already existing social sentiment analysis tools which are focusing on the mentions of the companies themselves.
Commenting on the new angle on social research, the Managing Director of Trading at TD Ameritrade, Nicole Sherrod, said: "The new layer does not focus on what investors are saying about a stock in social media. It focuses on what consumers are saying about the products that the company makes. Traders can analyze what people think of a core brand in the company portfolio or they can look at a roll up of all the brands.”
Currently the tool is available on 25 stocks, with more companies being added to the social analytics lens of TD Ameritrade’s thinkorswim Trading Platform on an ongoing basis. The list of firms that are currently available includes Amazon, Apple, Disney, McDonalds, Facebook, Google, Netflix, Microsoft and many more.
