What Is Net Social Sentiment
Prospero regularly ingests data from social media sites like Reddit and Facebook to understand how consumers and investors alike view the company, it's brands, or the stock. Posts and comments that speak favorably of the company (Positive sentiment) are subtracted from those that speak unfavorably (Negative Sentiment) to get a final, Net Social Sentiment score.
How to use Net Social Sentiment?
Net Social Sentiment is measured from 0 to 100. A high rating (80+) posts on social media are overall highly positive and a lower rating of (<20) social media posts are much more negative than positive.
When looking at Net Social Sentiment, be aware that it is volatile, as the public is fickle. It is not uncommon to see big swings from positive sentiment to negative that could result in an even bigger swing in price. It is also not uncommon to see a stock unaffected by social sentiment, as has been the case with facebook. From 2018 through 2021, they experienced significant criticism from the public and congress related to privacy concerns, and this earned them negative social sentiment. Despite this, their usage and revenues continued to go up, significantly increasing their stock price. Net Social Sentiment can be very helpful when combined with other ratings. Stocks with high Upside Breakout and Net Social Sentiment could provide a great signal to time your entry point into a stock with long term potential.
Update Frequency and Usage for Net Social Sentiment
Net Social Sentiment updates 8 times a day. Because of this you can generally count on it to include timely information to trade on. But still be careful as sometimes the stock is done climbing by the time the social sentiment swings in a highly positive direction or done falling by the time it swings negative. One way or the other a lot of money can be made on social sentiment so it is important to keep up with what is happening with this metric over the course of the day.