stock indexes to track most-hyped companies -Breaking
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© Reuters. FILEPHOTO: The Twitter logo was seen outside of the headquarters building in San Francisco (California), U.S.A, on January 11, 2021. REUTERS/Stephen Lam/File Photo
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By Sheila Dang
(Reuters) – What is the worth of Twitter fame? Two new stock indexes created by S&P Dow Jones Indices and Twitter (NYSE:) will unravel the mystery on Thursday, measuring the performance of the buzziest companies for investors with an eye on social media influence.
Since the dawn of Twitter, investors and traders can use it to get stock tips, follow breaking news, and even read tweets by CEOs, such as Tesla’s Elon Tesla, (NASDAQ:). Tesla recently polled its 64 million followers about selling 10% of their Tesla shares.
The Twitter Sentiment Index will measure the performance of the top 200 companies within the S&P 500 that have “the highest sentiment scores,” based on how the social network’s users are discussing the stocks, said S&P Dow Jones Indices.
Market capitalization will determine the weight of companies in this index. Another index, which will have equal weight, will assess the performance and top 50 companies.
These new indexes are being created as more people tweet about finance on Twitter, a San Francisco-based social network. This is due to the rise of cryptocurrency and other cryptocurrencies. Twitter stated that conversations about finance rose by 26% in 2020 compared to the year before.
S&P DJI said it will measure the Twitter sentiment of S&P 500 companies on a daily basis by analyzing tweets that contain a “cashtag,” a stock ticker feature that works similarly to hashtags, and scoring whether the tweets are more positive or negative. The indices will both be rebalanced every month.
Amazon.com Inc (NASDAQ:), JPMorgan Chase & Co (NYSE:) and Meta Platforms Inc, the new name for Facebook (NASDAQ:), will be among the companies in the Twitter Sentiment Index, S&P DJI said, though it declined to provide the full list.
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