Making stock market commentary from Twitter useful
Twitter has become a primary destination for stock market commentary and analysis:
From 2011-2014, conversations on Twitter around tagged equities ("cashtagged") have increased by 550%; reaching several million tweets per quarter. On average there are around 30 million tweets per day related to financial trading.
Due to the volume and unstructured nature of this information, it's difficult for personal investors to track and and make this data actionable, no matter how much they'd love to.
Solution
A tool that surfaces stock specific tweets from the most reliable market analysts and places them within the context of actual stock market movements.
Product
Proprietary Component: Punditt Score
The Punditt score is a measurement of how well a particular analyst's bearish or bullish stock related tweets have performed when compared to each particular stock's actual market performance.
Product
Current Incarnation: Features a leaderboard containing a list of Punditts ranked by their Punditt Scores. Users can click each Punditt's name to view a profile that contains recent stock related tweets as well as a record of a particular Punditt's score over time.
6-month trailing metrics
- # of Tweets Indexed and Scored: 12,948
- Users: 1,047* (Had at least 1 session*)
- Session Recency: 9.72% of returning users, return each day
- Returning Users: 25% of total users
- Total Punditt Profile views: 453
- Leaderboard Total Pageviews: 904
- Average time spent on leaderboard (all users): 0:01:39
- Average time spent on leaderboard (returning users): 0:02:03
- Bounce Rate: 60%
- % of New Users to Sign-up Conversion: 13.59%
Product
Beta Relaunch: The initial focus will be on individual stocks and allow users to see the relevant commentary (ranked based on each Punditt's score) associated with each. Users will also be able to determine which stocks a particular Punditt talks about most and gage their sentiment at a given point in time.*
*Redesign/Relaunch based on early quantitative/qualitative user feedback
Product/Feature Roadmap
-
3-5 Months (Goal: Improve overall UX, Increase sign-ups)
- Redesign & Relaunch
- 5-9 Months (Goal: Boost engagement, Increase sign-ups)
- New Features: Chrome Extension, Filtering, Up/Down Voting
- 9-15 Months (Goal: Expand data set, Boost Premium Conversions)
- New Features: Predictive analysis, Filtering by investor type, Data export, Introduce new data sources (StockTwits, SeekingAlpha, Yahoo Finance, etc.)
- 15-24 Months (Goal: Quicker access to data points, Boost user touch-points)
- New Products: Mobile App & Trading on Punditt
- New Feature: Deep search
Market Opportunity
Individual Stock Investors in US: 18 Million*
Individual Stock Investors using Social Media(Twitter, StockTwits) for research: 4.4 Million
Initial Target Market: $263.9 MM
Total Addressable Market: $1.1B
*Represents ONLY the top 3 online brokerages for individual traders in the US. Figures were found using bottom-up analysis.
Customer/User Acquisition
Current Methods:
- Content/Social Media Marketing (44.9% of all traffic)
- Twitter (84.56% of social traffic)
- Blogging ( 8.54% of social traffic)
- Facebook ( 6.40% of social traffic)
- Search (11.65% of all traffic)
- Email Marketing
Future (additional) Methods:
- Paid Media
- Twitter Ads
- Google AdWords
- Purchasing Ad space on financial blogs and stock market related websites
- Referral Program
- Cross Promotion Partnerships
Business Model
We are operating under a freemium model
- Basic Plan ($14.99/mo)
- Add 10 stocks to watchlist
- Access 5 Punditt Profiles
- Real-time email alerts: 10 stocks, 5 Punditts
- Premium ($29.99/mo)
- Add 30 stocks to watchlist
- Access to 10 Punditt Profiles
- Real-time email alerts: 30 stocks, 10 Punditts
- Pro ($59.99/mo)
- Add unlimited stocks to watchlist
- Access unlimited Punditt Profiles
- Real-time email alerts: Unlimited stocks, Unlimited Punditts
- Pre & Post Market Reports
Competitive Landscape
Web based analyst ratings
Curated, Social based stock analysis
- Punditt
- Market Prophit
Social sentiment analysis & prediction
- Sntmnt
- Data Minr
- Social Market Analytics
- Market Prohpit
- Gnip*
Stock research aggregated from the web
- Eagle Alpha
- TipRanks
- Traditional Online Brokerages
* Acquired by Twitter
Risks
- Changes in regulatory restrictions on social media usage for financial analysts and advisors
- Restricted access to tweets; Change of API terms from Twitter
- Decrease in stock market related tweets
How we can win
- Create positive alpha for retail investors
- User Experience/Product Simplicity
- Expansive data set
- Product differentiation (Punditt Score)
Punditt Pitch Deck.
By shows
