- LikeFolio is launching its new smartphone app Thursday in partnership with TD Ameritrade.
- The app provides immediate alerts whenever an influential person posts a market-moving tweet on a stock.
- The app will allow users to subscribe and follow the tweets from influencer channels such as "President Donald Trump," "The Kardashian Sisters," "Elon Musk" and "Hedge Fund Managers."
It's bold new world for trading where stocks can plunge instantly from an off-the-cuff tweet from the President or shares can surge because Kim Kardashian appeared on Instagram wearing a certain brand.
Now retail investors can keep up with the humming algorithms already keeping track of this stuff on Wall Street for hedge funds.
A firm called LikeFolio, which tracks sentiment on social networks in an attempt to predict future stock price moves, is launching a new app for iPhone and Android Thursday in a partnership with TD Ameritrade which provides alerts whenever an influential person posts a market-moving tweet on a stock.
Wall Street firms are increasingly using social media mentions and sentiment analysis in company research reports. Likefolio has been successful at spotting for clients some positive turnaround in shares of UnderArmour and Chipotle.
"Immediate alerts when powerful people tweet about public companies is a total game changer," founder Andy Swan told CNBC.
The app will allow users to subscribe and follow the tweets from influencers such as "President Donald Trump," "The Kardashian Sisters," "Elon Musk" and "Hedge Fund Managers." The alerts will come only when they are commenting on a publicly-traded company.
TD Ameritrade customers will receive exclusive access to premium channels in the app.
"As social data becomes more pervasive and powerful, we actively seek out new ways to help our clients leverage this information for their own investing decisions," John Hart, managing director, trading and product development at TD Ameritrade said.
The jury is still out whether this will lead to more profitable trading, but hedge funds apparently think there is something to this as they are spending increasing amounts of money on tracking social data.