In recent years, the world of stock trading has witnessed a transformative shift, with alternative data emerging as a formidable asset for investors. Beyond the confines of traditional financial metrics, unconventional data sources such as job postings, social media engagement, and employee satisfaction have become tools for staying ahead of the market and making informed investment decisions. Now, an AI platform is harnessing the power of alternative data to predict stock market movements with an impressive 70% success rate.
Opera (OPRA) and Remitly (RELY): Shining Stars with 139% and 91% Gains in Six Months
While traditional financial analysis remains invaluable, it often paints an incomplete picture of a company's performance and potential. Enter artificial intelligence and alternative data.
The AltIndex algorithm scours the vastness of the Internet sifting through millions of data points to provide investors with data-driven insights. The algorithm's performance in February underscores the immense potential of combining AI and alternative data analytics in stock picking.
Statistics show that nearly 70% of stock picks in February were profitable, contributing to an overall positive return of 27%. This followed a robust January with an impressive 85% success rate.
Among AltIndex's February recommendations, Opera (OPRA) and Remitly (RELY) were the top performers. Six months ago, the AltIndex algorithm identified Opera (OPRA) as a promising buy, citing a surge in business sentiment, app downloads, and several other indicators. Since then, the company's stock has soared an astounding 139%.
Remitly (RELY) proved to be another success story, supported by multiple positive signals such as job postings, employee satisfaction, mobile app downloads, and a notable increase in YouTube subscribers. Since the algorithm's buy recommendation in February, the stock has gained over 91%.
The algorithm's sell call on Bed, Bath & Beyond (BBBY) was equally prescient. Six months ago, a sharp decline in job postings and plummeting sentiment in stock forums led to a sell recommendation. Today, the company has closed its doors and its stock has been delisted from the NASDAQ.
AI platform for stock market
Artificial intelligence and alternative data have ushered in a new era of convenience and agility in stock trading, attracting a growing number of traders.
According to a June survey conducted by eToro, among 1,000 US retail traders, a significant majority are eager to embrace AI portfolio management. Around 40% of respondents, or two out of five, have either adopted or expressed willingness to use AI to shape their investment portfolios. Younger investors, aged between the ages of 18 and 44 are even more open to AI stock picking, with 71% using AI to manage their assets.
The survey also reveals that one-third of respondents believe AI technology will outperform traditional fund managers in selecting investments, while nearly two-thirds are willing to trust AI to modify and execute trades on their behalf.
Source: AltIndex.
