Crowds on wall street: Extracting value from collaborative investing platforms

Gang Wang, Tianyi Wang, Bolun Wang, Divya Sambasivan, Zengbin Zhang, Haitao Zheng, Ben Y. Zhao

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In crowdsourced systems, it is often difficult to separate the highly capable "experts" from the average worker. In this paper, we study the problem of evaluating and identifying experts in the context of SeekingAlpha and StockTwits, two crowdsourced investment services that are encroaching on a space dominated for decades by large investment banks. We seek to understand the quality and impact of content on collaborative investment platforms, by empirically analyzing complete datasets of SeekingAlpha articles (9 years) and StockTwits messages (4 years). We develop sentiment analysis tools and correlate contributed content to the historical performance of relevant stocks. While SeekingAlpha articles and StockTwits messages provide minimal correlation to stock performance in aggregate, a subset of experts contribute more valuable (predictive) content. We show that these authors can be easily identified by user interactions, and investments using their analysis significantly outperform broader markets. Finally, we conduct a user survey that sheds light on users views of SeekingAlpha content and stock manipulation.

Original languageEnglish (US)
Title of host publicationCSCW 2015 - Proceedings of the 2015 ACM International Conference on Computer-Supported Cooperative Work and Social Computing
PublisherAssociation for Computing Machinery, Inc
Pages17-30
Number of pages14
ISBN (Electronic)9781450329224
DOIs
StatePublished - Feb 28 2015
Externally publishedYes
Event18th ACM International Conference on Computer-Supported Cooperative Work and Social Computing, CSCW 2015 - BC, Canada
Duration: Mar 14 2015Mar 18 2015

Publication series

NameCSCW 2015 - Proceedings of the 2015 ACM International Conference on Computer-Supported Cooperative Work and Social Computing

Other

Other18th ACM International Conference on Computer-Supported Cooperative Work and Social Computing, CSCW 2015
CountryCanada
CityBC
Period3/14/153/18/15

Keywords

  • Crowdsourcing
  • Sentiment Analysis
  • Stock Market

ASJC Scopus subject areas

  • Computer Networks and Communications

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