YellowBrix has been in the content syndication and analytics business for more than 10 years. The company, which is based in Alexandria, Virginia, specializes in providing business, industry, and financial markets news and general consumer information for websites, intranets, wireless devices, and telephony services requiring real-time information. The company’s proprietary contextual matching and analytical processing technologies are employed through licensing agreements in Fortune 1000 corporations, associations, middle-market and small businesses across the United States and worldwide.
Within the next few weeks, in a step toward providing its analytical capabilities directly to consumers, YellowBrix will release a new product called RightTrade. Originally scheduled for a September 22 release, this content analytics software tool is designed to provide users with real-time analytical information in an effort to help them track, forecast and react to market and business news quickly and effectively.
"One of the first questions we asked ourselves," says YellowBrix President and CEO Jeff Massa, "was, ‘How do apply our technology to a model that makes sense for individual investors?’" Massa and YellowBrix contend that by providing individual investors with sentiment analysis for companies they are invested in—or are considering investing in—those investors will be better equipped to makes decisions as to when to buy or sell a stock. The tool crawls thousands of sources of information, including newswires, newspapers, magazines, and online publications, and can measure whether individual companies are getting positive or negative coverage from those sources.
From the main portal of the RightTrade platform, users can search for companies and find their up-to-the-minute sentiment score, stock price, and a whole host of other information, much of it presented as charts or in graphical form.
The metric that RightTrade focuses on in its sentiment analysis is the day-to-day change in sentiment. In terms of accuracy, Massa states that any sentiment score that changes 500%, in a positive or negative direction, correlates between 55% and 72% with a rise or fall in the stock price in an equivalent direction. But users are able to look deeper, past the numbers. During a recent demonstration, the aircraft manufacturer Boeing had a positive sentiment score of 4000%, but its stock was down. Upon investigation, Massa was able to pull up, through the RightTrade platform, the one negative story (which discussed a potential strike by Boeing workers) that investors latched onto that sent the price of the stock down.
At debut, RightTrade will be targeted at the same kind of investor who might currently be using an online subscription product such as TD Ameritrade or E*Trade. Massa says the company is looking into expanding the product’s capabilities in order to broaden its appeal to reach a more upscale, Hedge Fund-type market. However, for now, when the product is launched later this quarter, it will be available to investors for a monthly subscription fee of $24.95. Users also have the option of purchasing a yearlong subscription for $188.
"I think it’s a great tool for investors to use to track how companies are performing based on sentiment," Massa says, "but I think this product has a lot of other important uses as well." RightTrade can be employed by a PR firm to track the success of its campaigns, Massa says, or a company can use it to monitor how well its products are performing.
Until the launch, YellowBrix is working fervently to hone RightTrade so as to present the most efficient, most accurate—and ultimately most useful—software product possible. Jeff Massa and company want to make sure that RightTrade gets sentiment analysis right.