Twitter Sentiment Mirrors Facebook Stock Prices?

18th May 2012 44 Comments

If you had traded based on signals today to buy/sell Facebook stock, how would you have done?

Probably pretty well!

We’ve been closely monitoring Twitter’s social data and its relation to the Facebook stock price. What we found is pretty interesting. The positive and negative views on Twitter mirrored the fluctuations in Facebook stock price today.

The graph below plots Twitter chatter related to the IPO against Facebook stock prices. You’ll see that every time the volume of negative comments increase, Facebook stock price dropped within 20 minutes – noting an interesting correlation between Twitter sentiment and stock price fluctuations.

facebook day 1 trading: sentiment vs price

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