Researchers said that even if Twitter does not yet found a way to make money for itself but it is now doing a god job in generating cash for its user.
Students of PhD in Technical University of Munich conducted a study and found out that investors following stock market tweets could have achieved an average return of 15%.
250,000 tweets sent over a period of six month has been analyzed by Timm Sprenger and predicted that twitter will increasingly offer specialized information users.
Every day, thousands of stock-related messages are being received by twitter via tweets. Investors who tweets uses a mark according to their company stock symbols.
His further study made him discover a striking coordination between what Twitter was saying about shares and other information from investors and analysts.
He said in one of his statement that even if it is not the Holy Grail to make millions but it is still a very credible and legitimate source.
Such study has formed a basis for the new website TweetTrader.net but its status is currently in trial. The said site will provide a real-time sentiment for individual stocks to be accessed.
Last year in Germay, Mr. Sprenger also conducted a similar study using Twitter and found out the final results for each political party to within 2% of the votes they received.
He said they got as close as the research institutions that spent hundreds of thousands of pounds.
As of now, after extrapolating the information it has been the most talk about in Trending Topics feed.
In the future, it is expected to give a more specialized version of the service according to Mr. Sprenger.
“Twitter mood predicts the stock market” a paper published by the researchers last October which claimed that the change in emotion expressed via twitter would be followed by an equivalent change in the Dow Jones index.
They said they could predict its movements with 87% accuracy.