Prattle’s analysis of the market effects of President Donald Trump’s tweets was featured in Quartz.
Prattle quantifies the market impact of language. Our text analysis technology is primarily used to understand the impact of corporate and central bank communications. Click here to learn more about our process.
When now-US president Donald Trump took aim at Boeing on Twitter in December, the internet gasped collectively and the plane manufacturer’s share price fell 1%.
In the following weeks, he went on to subject companies including Lockheed Martin, General Motors, and Toyota to withering tweets. Their shares fell following his blasts. And CEOs throughout the US have assembled crisis plans to deal with the nightmare possibility of a mean Trump tweet.
But a new analysis of stock-market data shows that the president’s Twitter attacks have had no lasting impact on his corporate targets’ share prices.
For this analysis, Quartz turned to Joe Sutherland, a senior quantitative analyst at Prattle, a firm that specializes in assessing the impact of market-moving language. Sutherland ran the numbers for us—and it turns out Trump’s complaining tweets may cause short-term noise, but no long-term market signal.
Click here to read the full article.
The Prattle Team