Twitter may be able to foresee the ebbs and flows of the stock market better than any financial analyst.
The mood of the Twitter-verse can predict swings in the Dow Jones Industrial Average.
Calm or anxious tweets are the best predictors of market performance.
Although this research has only been applied to past market conditions, the study could help investors make a quick buck.
A mere 140 characters can help investors make a quick buck.
By analyzing nearly 10 million tweets over 10 months, Indiana University scientists found they could predict the rise and fall of the Dow Jones Industrial Average -- in some cases nearly a week in advance.
"These online environments are starting to drive real-life social phenomona," said Jonah Bollen, a scientist at IU who, along with graduate student Huina Mao, published a paper on the arXiv preprint server.
A growing body of research is mining information from social media sites like Twitter, Facebook and blogs. Recently scientists have used this information to measure the public's general state of happiness with a "hedonometer" and to predict box office sales of new movie releases by the amount of online chatter they generate.