Users of the microblogging website Twitter will soon have access to real-time information regarding stocks and shares, cryptocurrencies, commodities, and other investments such as exchange-traded funds due to a partnership between Twitter and the online trading platform eToro.
They will also have the ability to place trades directly from Twitter by clicking on to the eToro website.
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What the Partnership between Twitter and etoro entails
However, once users are on the eToro website, they are able to search for Australian stocks. At the moment, the information service is focused mostly on investments in the United States.
Already, online platforms are used by millions of private individuals all over the world to manage their individual investment portfolios.
It is believed that this new development, which was revealed on April 13, constitutes the first partnership of its kind between a social media platform with a firm that simplifies the process of purchasing financial instruments.
Elon Musk stated recently at a conference that he wanted Twitter to become “the biggest financial institution in the world.” His recent move was a part of his strategy to make the platform the “app-of-all-things,” and he stated that he wanted Twitter to become “the biggest financial institution in the world.”
The partnership with eToro expands on the ‘$Cashtag’ function of the microblogging network. This feature provides financial information about a select number of stocks and crypto assets by using data from TradingView.
A ticker symbol on the stock market that is preceded by the dollar sign is called a $Cashtag. As an illustration, the $Cashtag for Tesla, an electric vehicle manufacturer and firm in which Musk serves as chief executive officer, is $TSLA.
Users of Twitter can examine information about the real-time financial performance of a specific stock or asset by putting a $Cashtag into their Twitter feed. This information is updated in real time.
At the tail end of last year, Twitter began providing pricing statistics for its $Cashtags feature. Since then, the business claims that the function has seen significant acceptance, as evidenced by the fact that there have been more than 420 million searches for the phrase since the beginning of 2023.
According to the business, there is a correlation between earnings releases made by large and high-profile corporations and an increase in search activity. For instance, on the same day that the multinational technology corporation Apple announced the results of its fiscal year 2022’s fourth quarter earnings on February 2, 2023, the number of people searching for “$Cashtags” increased to eight million. When compared to the daily annual search statistic of 4.7 million, this figure is significantly lower.
Twitter said that $TSLA was the cashtag that was used the most frequently, with $SPY (SPDR S&P 500 ETF) and $BTC (Bitcoin) both ranking among the top five.
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Remarks and Responses from the Executives
In response to the news that was released the day before, eToro disclosed that their intention is, in due course, to cover more markets than only US stocks.
According to a spokesman for the company, “The partnership will hopefully see thousands of tickers working as $Cashtags with a route to our platform to learn more. These are being added in a gradual process.”
Chris Riedy, vice president of worldwide sales and marketing for Twitter remarked, “Twitter is what’s happening and what people are talking about right now. We believe real change starts with conversation, and finance and investing is a growing part of that conversation.
“We are pleased to partner with eToro to provide Twitter users with additional market insights and greater access to investment capabilities. Twitter will continue to invest in growing the #FinTwitter community.”
“Financial content on social media has provided education to many who have felt excluded by more traditional channels. Twitter has become a crucial part of the retail investing community—it’s where millions of ordinary investors go every day to access financial news, share knowledge and converse.,” said Yoni Assia, chief executive officer and co-founder of eToro.
eToro, the social investing network, was founded on these same principles—community, knowledge-sharing, and improved access to financial markets—in order to provide better access to those markets. There is power in combining one’s knowledge with that of others, and if they make investment into a communal effort, they will be able to achieve more fruitful outcomes and have more collective success.
eToro is not directly incorporated into the social media platform; nonetheless, the tie-in might potentially help Twitter financially through referrals to the platform. This was revealed by Zoe Gillespie, investment manager at UK-based RBC Brewin Dolphin.
Gillespie included, “We’d always advise investors to exercise caution where social media and investing become intertwined.”
“We would also encourage investors to check their sources, making sure anything they invest in is regulated, and that they understand the risks associated with unregulated schemes such as cryptocurrencies.”