Stockal, a firm that analyzes social and analyst sentiment, recently reviewed analyst behavior surrounding five different companies’ earnings. Using their Confidence Meter, which measures the aggregated opinion of over 200 Wall Street analysts, we can see how confidence Wall Street analysts are in certain stocks, and how they interpreted earnings.
The original article published on Benzinga can be found here.
Stockal recently tested their proprietary Confidence Meter and Sentiment Index to see how well they correlated with the share price movement of new-age stocks and blue chip “traditional” stocks in the second quarter.
The Confidence Meter is a measure of aggregated opinion of over 200 Wall Street analysts. The Sentiment Index is generated by an algorithm that analyzes social media buzz to identify changes in the sentiment of conversations related to a stock over time.
In the study, Stockal created two pairs of modern and traditional stocks: retailers Amazon.com, Inc. AMZN and Wal-Mart Stores, Inc. WMT, CitiGroup Inc C, and Paypal Holdings Inc PYPL
Over the quarter, the test found that the new-age stocks correlated much strong with the Sentiment Index–the measure of social media buzz–than the analyst-based Confidence Meter. While Amazon’s share price rose 7.7 percent, it’s sentiment rose from -900 to +100, while its Confidence Meter only increased from 83 percent to 86 percent.
During that same time, Walmart’s share price rose four percent. It’s Confidence Meter rose from 30 percent to 41 percent, while it’s sentiment only had a range of 75, going from -25 to +50.
The financial stocks yielded similar results. While Paypal’s stock price increased 7.5 percent, its sentiment climbed from -125 to +50 while its Confidence Meter only rose four points to 69 percent.
Citigroup, however, saw an increase in the Confidence Meter from 54 percent to 58 percent to go along with its 4.5 percent price increase. Meanwhile its sentiment remained flat at 50.
As published on 29th July 2016 in Benzinga
AMZN– Amazon.com, Inc. is a global e-retailer.
AMZN – Amazon.com, Inc
|Fundamentals||Previously closed at||753.78|
|Analysts opinion||Today is Amazon’s Prime Day – a shopping event which allows amazon’s Prime members to shop at Amazon with deep discounts. According to analyst estimates, last year’s Prime day drove about $375 Million worth Sales, and this year it is expected to be around $800 Million. Analyst confidence meter, a proprietary algorithm of Stockal gives 84% buy based on analyst ratings.|
|Sentiments||The stock is flat today in early trading, since a few Prime customers reported difficulties in checking out, and Amazon tweeted that it is working on resolving the issue. The sentiment index is 50% positive according to Stockal proprietary algorithm.|
|Social Media Pulse||The stock has 98% higher social media chatter than usual.|
Disclaimer: This blog contains an aggregated view of analysts and opinions by the author. Do not consider this as financial advice. See http://stockal.com/legalities/
AMZN – Amazon.com Inc is a global E-Retailer.
AMZN – Amazon.com Inc
|Fundamentals||Previously closed at||717.93|
|Analysts opinion||This has been a bad week for retailers, while E-retailing has been booming. Consumer spending trends have not changed much, so this shows that people have just shifted to an online shopping experience. While retailers have just begun to offer their businesses online, the already established e-retail giant, Amazon has bullish sentiments from analysts. Analyst Confidence Meter, a proprietary algorithm of Stockal, reads an 80% “buy”.|
|Donald Trump, said that Jeff Bezos, who is owner of Amazon and founder of Washington Post, is using his newspaper to avoid taxes by Amazon. Due to this news, there may be negative sentiments, however, in the long run, analysts believe the stock is bullish.|
|Sentiments||The Sentiment Index, a proprietary algorithm of Stockal, reads a 100% positive sentiments.|
|Social Media Pulse||The stock has 2% lower social media chatter than usual.|
AMZN – Amazon.com Inc is an e-commerce company, engaged in the sales of variety of products and services online.
AMZN – Amazon.com Inc
|Fundamentals||Previously closed at||602.00|
|Analyst opinion||Amazon reported its Q1 earnings yesterday after market close, and it crushed all estimates to announce an EPS of $1.07 and a revenue of $29.1Billion, up 28% from last year. Revenue from AWS, its cloud storage services is up 64% and it accounted for 56% of the company’s profits this quarter. In the global market Tablet sales is down, but Amazon managed to ship 2.2 million tablets in Q1, which is more than 5400% rise! Analysts. Credit Suisse raised its price target for Amazon to $880.|
|Sentiments||Due to Amazon’s amazing revenue reports, the shares were up 9% pre-market.|
|Social Media Pulse||The stock has 22% lower social chatter than usual.|