Twitter Inc (NYSE:TWTR)’s massive data has become extremely important for the financial industry, especially traders. Information services juggernaut Thomson Reuters Corporation (NYSE:TRI) (TSE:TRI-B) announced that it will add Twitter data to its Eikon trading terminal. The New York-based financial information company said it has incorporated stock-specific sentiment analysis gained from the microblogging site to its flagship trading terminal. Thomson Reuters plans to expand the service to other asset classes as well over the next few months.
Twitter feeds to be used to create charts for traders
Without disclosing financial terms of the deal, a Thomson Reuters Corporation (NYSE:TRI) (TSE:TRI-B) spokesperson said that it’s not an agreement directly with Twitter Inc (NYSE:TWTR). Instead, the financial information provider will combine proprietary Twitter feeds with many third-party feeds for the analysis. After collecting this kind of data, Thomson Reuters will create charts and visualizations. Traders can use these charts to track specific people and tweets.
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Thomson Reuters Corporation (NYSE:TRI) (TSE:TRI-B) said it will initially use only Twitter Inc (NYSE:TWTR) feeds. But the company will add more content sources like blogs over time. Eikon has more than 120,000 users. The company has spent more than $1 billion on Eikon to challenge Bloomberg. Twitter has increasingly become the center stage of conversations around how various industries and businesses are progressing.
Financial industry finally realizes the importance of Twitter data
It’s a bit surprising that the financial industry took so long to realize the importance of Twitter Inc (NYSE:TWTR) data. A large number of investors and traders have already been using the microblogging site as a news source. According to Aite Group data, more than 50% of quantitative firms have already been using “machine-readable news feeds.”
The sheer volume of data has made it difficult for human traders to interpret every piece of information and immediately spot trends. The addition of sentiment analysis to Eikon will turn Twitter Inc (NYSE:TWTR) content into actionable and quantitative insight for traders.
Twitter Inc (NYSE:TWTR) shares ticked up 1.92% to $66.50 in pre-market trading Tuesday.