Social Sentiment Drop
When social sentiment for a brand or stock moves down by a statistically significant amount within a small enough timeframe, we call that a Sentiment Drop.
It indicates that there is a consumer shift regarding the products and brands that the company makes. Generally speaking, sentiment drops occur prior to an decrease in revenue/profit numbers being reported in the media or to Wall St.
Here’s an example of where we saw a social sentiment drop and used it to predict that Tesla sales would fall flat.
The opposite is called a social sentiment jump.
This makes social sentiment jumps a powerful indicator in investing. To get started harnessing the power of social data in investing, you need to sign up for LikeFolio and open a brokerage account with TD Ameritrade right now.
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