Tweeting for Dollars

7 April 2011 - Twitter may not yet have found a way to make money for itself but it is doing a good job of generating cash for its users, research suggests. A study conducted by a PhD student at the Technical University of Munich found that investors following stock market tweets could have achieved an average return rate of 15%. Timm Sprenger analysed 250,000 tweets sent over a six-month period. He predicts Twitter will increasingly offer specialised information to users. Thousands of stock-related messages are sent every day via tweets. Tweeting investors mark tweets according to company stock symbols. There was "a striking co-ordination" between what Twitter was saying about shares and other information from investors and analysts, he found. "I don't think it is the Holy Grail to make millions but it is a very credible and legitimate source," he said. He also found that more valuable information was retweeted, meaning that it reached a wider audience. The study formed the basis of the website TweetTrader.net where the real-time sentiment for individual stocks can be accessed. The site is currently in beta (trial).