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trading.co.uk alerts users to Howard Stern's five year deal with SiriusXM before major media outlets

If you hadn’t heard the news, American radio and media icon, Howard Stern, was due to end his long-term contract with satellite radio station, SiriusXM, on Tuesday December 16, 2015.

But on Monday December 15, 2015, after months of speculation, the ‘shock jock’ put the minds of his fans at ease and revealed, live on air, that he would remain with the station after signing a five-year contract.

For his audience this was good news, but for SiriusXM and its investors, it was great news.

Howard Stern, one of the most iconic radio presenters in the US, is credited by many for transforming the satellite station into the (pre-tax) $1.7 billion per-year broadcasting service it is today and the announcement helped to boost the company’s stocks upon market-open on the Tuesday, after the early-morning show’s broadcast.

However, while a handful of news outlets began reporting the news soon after the announcement was made, it wasn’t until after the markets opened that the majority of international media outlets began covering the news.

So, unless you happened to be listening to the show at the time (aired 3:00am – 7:00 am ET), or were monitoring social media – you probably wouldn’t have heard the news until later that morning.

But, what if you could have been alerted to the news just minutes after the announcement was made?

With trading.co.uk, our open Beta users were able to do just that and take action based on the data and insights the platform provided them.

How stars influence stocks

Throughout the year and during November, stock in SiriusXM had remained relatively consistent – but by December 3rd, as speculation of Howard Stern’s departure became a more prominent topic, the price in Sirius took a noticeable dip.

By market close (at 4:00pm ET) on December 14th (two days before Howard Stern’s imminent departure) stock in SiriusXM was at its lowest point it had been in months.

Howard Stern’s show airs live between 3:00am – 7:00am (ET), when the market is closed, and the big reveal that he was staying with the station was made towards the end of the broadcast.

This gave listeners a good two and a half hours’ notice before the market opened again at 9:30am (ET) and social media users began sharing the news to other fans.

But for those not listening, or not on social media in the early hours of the day, the majority of major media outlets didn’t begin reporting on the news until after the market opened, by which time SiriusXM’s stock had risen by 3%. 

Hearing the noise in time

Users of trading.co.uk, the first consumer-focused product utilising Digital Contact’s big data analytics engine, were alerted to the story, within minutes of the news breaking on air - thanks to the platform’s Social Pulse Score and Social Word Cloud.

Exclusive to Digital Contact, the Social Pulse Scores are created using proprietary algorithms, developed in-house, which allow us to see how many mentions an entity (person, product, place, company, etc.) is gaining on social media. In a nutshell, it compares the number of mentions for an entity at a given moment to what we’d expect – the higher the pulse score, the more unusually high the mentions for that entity. Large spikes in a pulse score generally correlate with major events the entity is involved with.

In the case of SiriusXM, traders monitoring the company, could see a sudden shift in the Social Pulse Score to 7.7 (which is very high) and common words forming in the Social Word Cloud, such as: “Howard”, “Stern”, “Staying”, “Show”, “Deal”, “Five Year” and “Sirius”.

These valuable indicators were able to alert users, within in minutes of the announcement, to the fact that a lot of chatter was happening around SiriusXM - indicated in the Pulse Score - and exactly what the most talked about topics were, through the word cloud.

Howard Stern/SiriusXM announcement timeline (note: all times in US Eastern Time):

Monday 14th December

  • 4:00PM (NASDAQ market close): SiriusXM stock at a significant monthly low.

Tuesday 15th December

  • 3:00 AM – 7:00 AM: Howard Stern show airs live.

  • 7:00AM: News announced live on air, towards the end of the show.

  • 7:15AM: Social media reaction to the announcement takes hold, people begin responding on social media and sharing the news.

  • 7:18AM: trading.co.uk’s Social Pulse Score shifts dramatically – alerting users to the fact that news is happening around Howard Stern and the SiriusXM company.

  • 7:30AM: Early news reports begin surfacing from media in the US.

  • 9:30AM: NASDAQ market opens – Sirius XM price shifts on open.

  • 11:00AM: Majority of media sources now reporting on the news – emphasising a boost in SiriusXM’s stock in the aftermath of the news breaking.

Result:

Only fans of the show would have heard the breaking news live on air, but within minutes of the announcement, trading.co.uk had picked up the news and was alerting users to the fact something was happening.

By monitoring SiriusXM on trading.co.uk, you would have seen a shift in Social Pulse Score, insights into what was being talked about on social media and the volume of conversation, more than two hours before the markets opened – alerting you to the breaking news about Howard Stern’s five year deal with SiriusXM.

trading.co.uk is currently in its Open Beta phase. To see what insights the platform can provide you, become one of our early adopters and start using the platform today, for FREE.

 

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