Explained
Social sentiment vs news sentiment
Social sentiment scores what investors post on StockTwits, Reddit and X. News sentiment scores what journalists write. One is the crowd, the other the press.
| Social sentiment | News sentiment | |
|---|---|---|
| Comes from | Posts by investors and traders | Articles, headlines and wire stories |
| Who writes it | Anyone with an account | Journalists and press offices |
| Speed | Minutes, around the clock | Hours, around events and filings |
| Tone | Opinionated, written to persuade | Written to inform, usually balanced |
| Main weakness | A loud few can swing it | Slow, and tied to what editors cover |
What is the difference between social sentiment and news sentiment?
Who is talking. Social sentiment is a reading of investors themselves: whether the people posting about a ticker on StockTwits or Reddit lean bullish or bearish. News sentiment is a reading of the coverage: whether headlines and articles about the company read as good or bad news.
They often disagree. A results day can bring neutral, careful headlines and a furious crowd, or the other way round. Neither is the company's own view, which is in its filings.
How is each one measured?
StockTwits scores its own symbol streams, so its sentiment is the platform's reading of posts tagged to a ticker. News sentiment is usually a model scoring the words in headlines and articles. Both are samples: one of the people who post, the other of the outlets that write.
Which one moves first?
Usually social, because posting is instant and reporting takes time. But first is not right. A crowd can react to a rumour the news never confirms, and a story can land days after the crowd has moved on.
Social sentiment on this site
StockTwits' own sentiment score for every US stock and ETF we read, beside its watchers, message volume and the Reddit posts naming it. We do not score news sentiment for tickers, and we do not score the tone of Reddit posts: they are counted, not judged.
Stock social sentimentAlternative data for stocks
Social sentiment vs News sentiment: common questions
- Is social media sentiment reliable for stocks?
- It is a reliable reading of what people who post are saying, and nothing more. It leans toward active retail traders, and a few loud accounts can move it.
- Is news sentiment better than social sentiment?
- Neither is better; they measure different people. Reading both, with the filings, gives a fuller picture than either alone.
Related
Not investment advice. Kovered publishes StockTwits watcher, sentiment and message volume readings and counts of public Reddit posts that name a stock or ETF, plus, for listed consumer companies, readings of the brands they own. It does not publish share prices, forecasts, ratings or recommendations to buy, sell or hold anything. Do your own research. Read the full notice.