The Ultimate Guide to Social Media Sentiment Analysis of Stocks and Cryptocurrency

Social Media Sentiment Analysis for Stocks and Crypto. Utradea graphs real-time social momentum, sentiment, and social media trading signals

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The Ultimate Guide to Social Media Sentiment Analysis of Stocks and Cryptocurrency

Stuart Mooney

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Social Media Sentiment Analysis for Stocks and Crypto

Utradea graphs real-time social momentum, sentiment, and popularity of the stocks and crypto you trade. With the abundance of stock and crypto material on social media, an increasing number of retail and professional investors are leveraging trends and information from social media platforms to make investment and trading decisions.

The problem is that monitoring sentiment and trends for stocks and crypto on social networks like Twitter, Stocktwits, and Reddit is time-consuming. It is also difficult to find insights when you are looking at individual Tweets, threads, and post history. Utradea graphs real-time social momentum, sentiment, and other financial metrics for stocks and crypto in one easy-to-use dashboard. You can become a more successful investor by incorporating the Utradea Social Sentiment Dashboard to track social sentiment for the stocks/crypto your own, apply the information to investment research, or use the real-time data to improve your trading.

The Most Powerful Stock and Crypto Social Sentiment Dashboard

Here is a troubling fact, most stocks and crypto social sentiment data providers and platforms don't provide accurate social media tracking data. We've seen dozens of platforms that show sentiment based on a few tweets, when in reality, the stock/crypto we are looking at has over 1,000 tweets in the same time period. The main reason is that it is tough to collect, aggregate, manage, and display millions of social media posts and data in real-time. If you are using inaccurate information to make investment or trading decisions, then you're already at a disadvantage. Imagine making an investment decision based on an incorrect PE (Price to Earnings) Ratio. The same applies to social media sentiment data for stocks and cryptocurrency.

Utradea is the most powerful stock and crypto social sentiment dashboard because we collect data at the tweet/post level, aggregate it, and present it intuitively - all in real-time. This is no simple feat, but one that our team was able to tackle. By providing you with the most accurate stock and crypto social media sentiment data, presenting it in a way that is easy to understand and in real-time, you can make better investment decisions.

Why You Should Be Tracking Social Media Trends for Stocks and Crypto

The influence of social media on financial markets is here to stay, as younger generations start saving and investing. We've seen a substantial increase in retail investors joining the market, and over 150 million people have an online investment/trading account. This carries both opportunities and risks. Information sharing and discussion on internet platforms can improve market transparency and efficiency.

Social media, particularly Twitter, can act as a window to the general sentiment of investors. Here is an interesting statistic, in a 24hr period we see over 100,000 Tweets and 350 million impressions for the top 50 tickers. There are still thousands of stocks and crypto that are tacked but don't hit the top 50. Tracking the social media sentiment and momentum towards a company or crypto gives you a view of opinions that could impact the price. There is a complex interaction between sentiment, fundamentals, and asset prices. Some researchers find that “filtering” sentiment - removing the effects of recent price action on retail sentiment - leads to an even stronger predictive signal.

How To Use Utradea's Social Sentiment Dashboard

There are a ton of powerful metrics provided in the Utradea Social Sentiment Dashboard, but it is super easy to use. The following sections highlight the key metrics and how to use them to track your favorite stocks/crypto or discover new investment/trading opportunities.

Trending Stocks and Crypto on Twitter and Stocktwits

You can choose to look at trends from either Twitter or Stocktwits. They each provide a different perspective of because the platforms are somewhat different in nature. If you are not familiar with the, I would spend a bit of time on the platforms to get a feel for the communities. Twitter is ideal for a real-time view of popular stocks, trending stocks, and real-time market news. Stocktwits is great for identifying up and coming stocks, as well as strong social momentum, especially when tickers start to trend as “hot” stocks on Stocktwits.

In general, if you are looking for cryptocurrency social sentiment and trends, Twitter is the best source. The volume of crypto-related cashtag is typically two to three times greater than equities. Twitter is the primary source for crypto news, sentiment, and trends.

social media sentiment stocks and crypto - twitter and stocktwits - utradea.com

Selecting a Timeframe for Social Trends

You can choose a timeframe between 4 hours and 3 months. This is useful because it allows you to look at long-term perspective of trends or dive into the most recent short-term trends. We have seen macro sentiment and social momentum trends occur over a 1-month or 3-month timeframe, which provides a great overview of a stock or crypto. There have also been cases where looking at the 4 hour or 12 hour timeframe allowed us to identify a spike in social chatter, momentum, and sentiment, which was used as a leading indicator of price movement.

social media sentiment stocks and crypto - timeframe - utradea.com

Stock and Crypto Social Sentiment Metrics: Selecting a Metric for the Dashboard

There are 15 different metrics you can select to discover stock and crypto trends, analyze data, and gain insights. The multitude of combinations might seem overwhelming, but it is very simple to start charting this information. A suggested starting place is to combine social data with stock/crypto data. For example, looking at the number of impressions and trading volume over a period of time.

Now let's dive into each metric you can view in the Social Sentiment Dashboard:

Note: The metrics are provided on a ticker basis - so it pulls data from Twitter and Stocktwits by the $ (cashtag). Any Tweet or post that contains the $TICKER (example: $TSLA or $BTC) is captured

Posts: the number of tweets or posts for a selected timeframe. Useful to understand the social momentum.

Comments: the number of comments for a selected timeframe. Useful to see the engagement.

Likes: the number of likes for a selected timeframe. Useful to see the engagement with tweets and posts.

Impressions: the number of users that see the tweet or post. Useful to understand how much reach a stock or crypt is getting. For example, if a Twitter account has a following of 10,000 people and they Tweet $TSLA, then there will by 10,000 $TLSA impressions.

Sentiment: the overall positive or negative sentiment for a selected timeframe. Values are shown on a scale between -100 and +100. The sentiment value is a combination of both positive and negative sentiment, to provide one sentiment score. A positive sentiment score indicates positive sentiment, and a negative sentiment score indicates negative sentiment. The larger the score the more positive or negative the sentiment is.

72hr, 1w, 2w, 1m Moving Average: the moving average for the number of tweets or posts for a selected timeframe. The moving average timeframe can be selected for 72hrs, 1week, 2week or 1 month. Useful to see how the volume of posts has changed over time to gauge the strength of the trend.

Google Trend: the search popularity for the ticker for a given timeframe. Values are shown on a scale between 0 and 100. Useful to see the overall interest in a stock/crypto, based on global search results. Google is the number 1 search engine in the world, knowing what stocks and crypto investors are searching for is powerful information.

Price: shows the price of the stock/crypto for the selected timeframe. Values are shown in USD, unless it is a Canadian ticker. Crypto is shown in COIN/USD. Useful to see how the price of an asset changes relative to social metrics.

Volume: shows the trading volume of a stock/crypto for the selected timeframe. Values are shown in shares or coins traded. Useful as a trading signal, in both high and low volume instances.

10k, 100k, 500k Followers: shows the number of tweets or posts by an account with 10k, 100k, or 500k followers for the selected timeframe. Useful to see what stocks/crypto the “whale” accounts are tweeting or posting about.

Note: when displaying these metrics, you have the option to show them as either a line chart or bar chart. As mentioned earlier, there are multiple combinations of metrics you can use for insight discovery and trend tracking.

social media sentiment stocks and crypto - metrics - utradea.com

Social Media Sentiment Stocks and Crypto Overview

The Overview provides a snapshot of the most common metrics used to understand trends. For a selected timeframe, the change in posts, comments, likes, and impressions are displayed. This is useful for seeing significant increases in social momentum and trends, which usually indicates there is something significantly positive or negative occurring, and will likely impact the price of the stock or crypto.

social media sentiment stocks and crypto - overview and trends - utradea.com

Direct Feed

The Direct Feed is a real-time feed of the most recent Tweets or Stocktwits posts of the selected stock/crypto. This is especially helpful for Twitter, because you don't have to filter through several tweets just to find ones that have the cashtag you are looking for. You can also click on a specific time interval to Tweets or posts for the selected time interval. For example, if there is a spike in posts or impressions between 2:15pm and 2:30pm, you select the bar and you will see the tweets from that time interval.

social media sentiment stocks and crypto - direct twitter and stocktwits feed - utradea.com

Filtered Feed

The Filtered Feed is a real-time feed of Tweets or Stocktwits posts with spam and bot accounts removed. The Utradea Social Sentiment Machine Learning Algorithm detects bot and spam accounts, removing them form the feed, so you have access to information produced by real people, and trusted sources. We know spam and misinformation is an issue, especially in the investing space, so the filtered feed allows you to quickly find quality insights and information from your Twitter or Stocktwits feed.

social media sentiment stocks and crypto - filtered twitter and stocktwits feed - utradea.com

Influencer Feed

The Influencer Feed shows you the most recent Tweets and Stocktwits posts from accounts with the largest followings, known as “whales”. We know the power of social media, and accounts with large followings typically have a greater impact because they are seen by the most number of Twitter and Stocktwits users. It is especially useful to know if an account with a large following is talking about a stock/crypto with a small market cap. You can quickly identify accounts that might be pumping/dumping certain stocks or crypto, or if a large news source is talking about a specific company or cryptocurrency.

social media sentiment stocks and crypto - influencer twitter and stocktwits feed - utradea.com

Social Sentiment Screener for Stocks and Crypto

This is the best way to find trending stocks and crypto. There are over 50 metrics to choose from, and you can have up to six selected at one time. There is also the ability to sort the metrics by ascending or descending order. This is my go-to for the top trending stocks and crypto across Twitter and Stocktwits, and the main place to keep track of the stocks/crypto you own and find new investment/trading opportunities. Let's dive into the Social Sentiment Screener Metrics

For the metrics listed in the section Social Sentiment Metrics: Selecting a Metric for the Dashboard there are three options to select from, and we will use Posts as an example:

  1. Posts - the number of posts for the selected timeframe
  2. Posts Previous - the number of posts for the previously selected timeframe
  3. Posts Change - the change in number of posts from the previous timeframe to the current selected timeframe

The metric value, previous metric value, and change in metric value are available for Posts, Comments, Likes, Impressions, Sentiment, 10K Followers, 100K Followers, and 500K Followers.

Now let's dive into the additional metrics for the Utradea Social Sentiment Dashboard screener. I will provide a high-level view here, but if you are unfamiliar with the definitions, there are a ton of great sources online to explain the benefit of these metrics and how they can be used to inform investing and trading decisions.

Price

  • Previous Close: the previous close price of the stock or crypto for the selected timeframe
  • Price: the current price of the stock or crypto for the selected timeframe
  • Change: the change, in value amount, of the stock or crypto for the selected timeframe
  • Change %: the percent change of the stock or crypto for the selected timeframe
  • Volume: the trading volume of a stock/crypto for the selected timeframe
  • Previous Volume: the previous trading volume of a stock/crypto for the selected timeframe
  • Volume Change: the percent change in trading volume of a stock/crypto for the selected timeframe
  • PE Ratio: the Price to Earnings ratio of the stock
  • YTD Change: the Year to Date change in the price of the stock or crypto
  • Market Cap: the Market Capitalization of the stock/crypto

Stock Info

  • DCF: Discounted Cash Flow valuation represented as price per share
  • Employees: number of employees for the company

Earnings

  • Days till Earnings: the number of days until the company releases earnings
  • Days to Dividend: the number of days until the company pays a dividend (if dividend payouts are applicable)

Price Change History: the price change history for a selected timeframe, with one of the following selections: 24 hr, 48 hr, 72 hr, 1 week, 2-week, 1 month, 3-month, 6-month, 1 year, 2-year 3-year, 5 year

Avg Volume History: the average volume history for a selected timeframe, with one of the following selections: 24 hr, 48 hr, 72 hr, 1 week, 2-week, 1 month, 3-month, 6-month, 1 year, 2-year 3-year, 5 year

Options - the following information is available for both call options and put options

  • Intrinsic Value: the value any given option would have if it were exercised today
  • Value Change: the change in the value the option would have if it were exercised today vs the previously selected time frame
  • Prior Value: the change in the value the option would have if it were exercised today vs the previously selected time frame
  • Implied Volatility: the expected volatility of a stock over the life of the option
  • IV Change: the change in the expected volatility of a stock over the life of the option vs the previously selected timeframe
  • Prior IV: the expected volatility of a stock over the life of the option at the previous point in time for the selected timeframe

User Stats

  • Unique Users Posting: the number of unique users mentioning the stock/crypto for the selected timeframe. Useful to see if the same accounts are posting the same stock, or if there is diverse interest from several different accounts.
  • Posts per User: the average number of posts per user mentioning the stock/crypto for the selected timeframe. Useful ratio to see if people are just mentioning the stock/crypto once, or multiple times over a selected timeframe.
  • Avg Account Age (Mths): the average age of the accounts, in months, for the stock/crypto for the selected timeframe. Useful to help identify tickers that have several bots (newer accounts) or a more reputable following (older accounts).
  • Avg Following: the average number of followers each account has for the stock/crypto for the selected timeframe.

social media sentiment stocks and crypto - twitter and stocktwits screener - utradea.com

Find Your Next Great Investment with Social Sentiment Data

We have talked about the power of social media for investors in the stocks and crypto space. Being able to track stock and crypto trends across social media platforms is extremely valuable for today's investors. The Utradea Social Sentiment Dashboard allows you to quickly and easily see how your current stocks/crypto are trending or find new investment opportunities through the screener.

There was a lot to cover, but once you start using the Utradea Social Sentiment Dashboard, it becomes second nature and an irreplaceable alternative data source for your investment research and decision-making process. By providing you with the most accurate stock and crypto social media sentiment data, presenting it in a way that is easy to understand and in real-time, you can make better investment decisions. Good luck and happy investing and trading!