Nacho Analytics is brilliant! I’ll even concede that this tool might be God Mode for the internet. However, today is not going as well as I (and they) had hoped. Unfortunately, on day #2 it broke and only the mobile app is working at the moment.
I’m hopeful that it will be working again by next week, but until then, I wanted to share with you one interesting case study and idea that might change sentiment analysis forever.
Again, this was only day one of their launch, so further research and correlation data is needed, but I saw web traffic for the popular stock advice website TheStreet.com yesterday.
A Peek Behind The Traffic Curtain
Sounds crazy, but yes, the makers of SpyFU shared a Google Analytics environment using their Nacho Analytics application for me to see traffic on TheStreet.com. The “real-time” view was one hour old (and somewhat sampled) – but yes, I could see the traffic hitting their site yesterday inside of Google Analytics!
In full transparency, I don’t know exactly how their patented tech works, but I did sample their data off of a larger website I do have access to, and the numbers were close. My install said there was about 112 active visitors on the site and the “Nacho version” was within one or two visits of what “real GA” was telling me. Given Nacho admits to a one hour delay on their data (including a GDPR compliant scrub on personal data) it seems like it was doing a good job.
My simple goal was to see what stocks were popular in the morning, and then see the changes to that stock by the closing bell.
I wasn’t surprised to see Facebook or Amazon at the top due to their popularity. However, I was shocked to see Comcast trending two URL’s in the top ten. It stood out to me because their last earnings call was a month ago. I don’t follow or own Comcast (NASDAQ: CMCSA), but it felt like there was a ground swelling, so I set my hypothesis on this stock to see if it would break up or down.
I apologize for the bad phone images below. I was texting a friend and didn’t plan on using them in a blog post today, but it’s all I have at the moment. As I mentioned, their system is a bit broken at the moment, and I can’t get this view again. However, trust me when I say, two top landing pages were for Comcast yesterday morning (highlighted in Green):
So What Happened?
When I checked Comcast (CMCSA) this morning I see that their stock ended up 3.23% and trading at a 5-day high.
Is This Really a Game Changer?
Yes & No. While a $35 dollar stock now trading at $36.48 isn’t likely going to make you rich overnight, it’s certainly one more data insight that has the potential to change how the game is played.
With stock apps already showing social media sentiment analysis, this added data layer would also empower buyers and sellers even more by identifying what sentiment people are subscribing too! My guess is that this could be an even greater tool for options traders who may want to look at trends and predict where stocks are heading long term.
Not to get too far ahead, but this is the type of data that a celebrity stock pundit like Jim Cramer has been able to see everyday for his website. If someone now has the ability to see CNBC, Yahoo Finance, Seeking Alpha, Market Watch, and TheFool.com all at once, the data mining is mind-blowing for stock traders. I’m sure someone or some company is already trying to build a machine – behind the Nacho Analytics machine – to aggregate these behavior trends.
You can argue that this was luck, a coincidence, or just conjecture on a small sample size, and I would 100% agree with you. But! We could go even deeper, and you could also use this tool to study trend analysis in new ways.
Take for example a website like Grubhub.com or a popular online hotel booking site. If you wanted to see online reservation tends of a particular brand or orders for a particular company, you might be able to predict if they will beat their next EPS estimate, or not.
I’m honestly skeptical something this powerful will last, but at the moment it’s a Game Changer in more ways than anyone can really fathom. Godspeed to any early adopters and the makers of Nacho Analytics.