Saturday, December 26, 2009, 6:14PM ET - U.S. Markets Closed.

"The Human Ticker": StockTwits and the Power of Social Leverage

Posted Aug 26, 2009 04:13pm EDT by Aaron Task in Investing, Networking and Communication, Information Technology
It's fashionable these days to criticize social networking sites for their inability to connect with teens (NYT on Twitter), potential to ruin friendships (WSJ on Facebook) and lack of profitability (all).

But beneath the surface - in this case on top of Twitter's platform - some entrepreneurs are seeking to turn the power of social networking into actual businesses.

Take, for example, StockTwits.com, which bills itself as "Bloomberg for the little guy and gal."

After just seven months, StockTwits.com has 90,000 users and over 1000 unique contributors sharing ideas about stocks and the economy in a community built on Twitter's open software architecture.

Unlike the "computer generated" tickers at the bottom of CNBC or Bloomberg TV, StockTwits is "the human ticker," says co-founder Howard Lindzon.

As with other financial networking sites, StockTwits is based on the idea contributors who prove themselves savvy traders will gain followers. In turn the "networking effect makes [top members] more inclined to contribute more, which makes the community smarter," says Lindzon, a VC investor and partner at Knight's Bridge Capital.

Lindzon joined me from the Nasdaq, which has partnered with StockTwits.com for its "Data Junkies" campaign.

26 Comments

shags1_23
shags1_23 - Wednesday August 26, 2009 04:58PM EDT

140 characters is just the right amount to pass on wisdom and insights on the stock market, like this little pearl of knowledge: when the mo

raymond
raymond - Wednesday August 26, 2009 04:59PM EDT

for children only

SANTA SEZ....
SANTA SEZ.... - Wednesday August 26, 2009 04:59PM EDT

Why would anyone invest when they are out of money and suicidal?

Yahoo! Finance User
Yahoo! Finance User - Wednesday August 26, 2009 04:59PM EDT

Oh Twit!

SANTA SEZ....
SANTA SEZ.... - Wednesday August 26, 2009 04:59PM EDT

Why would anyone invest when they are out of money and suicidal?

Yahoo! Finance User
Yahoo! Finance User - Wednesday August 26, 2009 05:23PM EDT

Sounds like a bunch of Twit

Yahoo! Finance User
Yahoo! Finance User - Wednesday August 26, 2009 05:02PM EDT

I see Howard mentioned that he is working with NASDAQ, isn't that Bernie Madoff's old stomping ground.

Yahoo! Finance User
Yahoo! Finance User - Wednesday August 26, 2009 05:31PM EDT

Oh--NO ! I was deleted for wanting help American women who got stuck in Nigeria ! Talk about Diplomacy !

Nick
Nick - Wednesday August 26, 2009 05:36PM EDT

shags1_23: u cn gt lot mre info n 140 chr f u js drp a fw ltrs. lk 4nstnc th bst stk tp tht i hrd tdy s a pur cmdt ply n AU. wht u ned 2 do

Red W. Blue
Red W. Blue - Wednesday August 26, 2009 06:24PM EDT

Stock market investments involve risking assets! Immature children shoud not play in the market zones they might injure innocent people and hurt themselves!

Polski
Polski - Wednesday August 26, 2009 08:39PM EDT

A good thing about all these inter-chatter posts and social Leveraging is that the people can feel the pulse of the Economy much faster than the olden Normal means of reading and listening to the media. Take the current rise is Gas, the people "at the pumps" are talking to each other, and telling "to cut back" on travel, restaurants, and spending. The current price raising has been subtle, but noticed.

Polski
Polski - Wednesday August 26, 2009 08:44PM EDT

Reminds me of infomercials, you think you are getting News, but it is only a push to sell something. You only think it is a stock analysis?

Jesse
Jesse - Wednesday August 26, 2009 08:50PM EDT

I just checked out stocktwits.com. Are you a real company? That UI is gross. Hire a designer or someone rather than get your brother's friend's sister in law's cousin twice removed to do it. Everything about the UI is repulsive.

Jesse
Jesse - Wednesday August 26, 2009 08:50PM EDT

I just checked out stocktwits.com. Are you a real company? That UI is gross. Hire a designer or someone rather than get your brother's friend's sister in law's cousin twice removed to do it. Everything about the UI is repulsive.

Lb
Lb - Wednesday August 26, 2009 09:15PM EDT

This is what happens when "financial news" is nothing more than oil execs sabotaging alternative fuels and unrealistic investors expecting housing to rebound before employment does (people with jobs buy houses. Not rocket science). When stocks are discovered and/or recommended by text message junkies (especially in an economy being watered down by more dollars being printed) it's time to brace yourself. We have been trying to "dig" our way out of a hole. Frightening to think how much worse it can get. Maybe McStocktips with every french fry purchase.

Yahoo! Finance User
Yahoo! Finance User - Wednesday August 26, 2009 09:34PM EDT

Another worthless interview from the biggest TWIT of them all--Aaron Task.

Robin
Robin - Wednesday August 26, 2009 10:09PM EDT

Come on....... October 29......2009!!!!!! Preparing to swoop in like a vulture and feast on the dead when this market crashes beyond imagination!! Made my money going up and now I'm gonna make it when it goes DOWnnnnnnnn!!!

chubby
chubby - Wednesday August 26, 2009 10:23PM EDT

If the stocktwits are anything like the ranting, unfocused, illiterate, misinformed people that post here, why would anyone look to them for investment advice?

Yahoo! Finance User
Yahoo! Finance User - Wednesday August 26, 2009 11:49PM EDT

Excactly. Who cares what you had for lunch! Social Internet sites are useless dribble and are now being targeted for company PR and marketing as is the case here. The Internet used to be a place for thinkers, no the morons are coming on and the other great vampire squid, Google is taking over.

K
K - Thursday August 27, 2009 05:23AM EDT

LOL at old mate, forgetting the name of CNBC, that tells more more about the times than a lot of other things..

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