Can Twitter Help Predict Firm Value?

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Investors have long relied on information intermediaries-from financial analysts and advisors to the business press, credit rating agencies and auditors-to acquire timely and value-relevant information regarding the prospects of stocks. However, with the rise of the Internet and social media, individual investors are increasingly relying on each other as peer-to-peer sources of information. The author describes his research, which indicates that Twitter is another embodiment of the wisdom of crowds and that the aggregate opinion from individual tweets does help to predict earnings.
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