the blog

I wanted to write a followup post to take a closer look on how Twitter is affecting specific markets. With our recent Twitter integration, we’re still figuring out the impact of how local conversations affect the renters decision-making process.  Let’s take a closer look on how it is affecting the stock market and traders, wholesalers of consumer goods, and the rental market.

Stock Markets

Stocktwits.com, a San Francisco based company, specializes in tracking conversations around stocks to give investors insight on stocks. Funded by veteran Wall Street investors, Stocktwits is a simple tool that combines twitter with stock charts. But the magic is in the Twitter conversations and its surprising ability to gauge public opinion.

According to the BusinessWeek titled, “StockTwits May Change How You Trade”, the transparency of a Twitter and the recorded track record allows traders to identify who to follow and who not to follow.

Just like the credibility and objectivity crisis of sell-side analysts in 2001 led to a boom in financial blogs like Seeking Alpha and Barry Ritholtz’s The Big Picture, the credibility crisis afflicting mainstream financial media today has led to a boom in investor social networks. Traders and investors alike have come to view these platforms as trusted filters that help them make more informed decisions because they can discuss and interpret the news with their peers. At the same time, unlike financial bloggers who make their mark by writing commentary and opinion pieces, StockTwits users are essentially creating a trading record that’s scrutinized on a daily basis. A trader’s reputation is always on the line, and that’s the beauty of the financial social Web—it forces people to be accountable.

Wholesalers of Goods

Dell, over the past year and a half, has sold over $1 million in personal computers on Twitter. People sign up to receive Dell alerts, and are sent messages when discounted products are available. Dell turned a simple chat tool into a distribution channel.  According to InternetNews:

Less altruistically, some businesses have discovered that Twitter is an effective way of communicating with consumers. Dell (NASDAQ: DELL) says Twitter has produced $1 million in revenue over the past year and a half through sale alerts. People who sign up to follow Dell on Twitter receive messages when discounted products are available the company’s Home Outlet Store. They can click over to purchase the product or forward the information to others.

Also cited as how Jet Blue is announcing discounts on Twitter and gaining some traction with consumers.

Rental Market

We give people searching for a place to live real advice from renters living in that area. Via Twitter, we feel potential renters can get a sense for the neighborhood vibe, types of people living in the area, and identify locals to ask for feedback.

Again, as stated on a previous post, Twitter seems to be hosting conversations that may prove to be very relevant to multiple industries, including the rental search.  With Twitter, we are expanding the conversation beyond just our site and into the real-time social web.

Here is a slideshow created by a Twitter enthusiast:

My conclusion, though Twitter may not be an end all source for stock advice, shopping, or rentals, it suppliments the experience with information, data, and consumer views in real-time.  Once a place for geeks to talk about Technology, Twitter showing its versatility and proving it can be used for more than just answering the question, “What are you doing?”.