Stocktwits Stops Automatic Updates To Twitter, A Story Of Network Effects

new stocktwits twitter update

Stocktwits Stops Automatic Updates To Twitter, A Story Of Network Effects:

No more posting directly from Twitter to Stocktwits,

Stocktwits, arguably the hottest social media network for investors is going solo.  In an email to users and on their blog this week they announced a huge change of protocol.  No longer will users be able to update their Stocktwits and Twitter accounts at the same time.

Typically, users are able to update Twitter and subsequently update Stocktwits at the using a cashtag like $FB (dollar sign and stock ticker symbol but this functionality was adopted by Twitter.  Stocktwits posted the news in their blog stating,

“Effective March 1, 2013, StockTwits users will no longer be able to post to their StockTwits accounts via Twitter by including a $TICKER or $$ in the message. The only way to contribute to the StockTwits streams will be by posting directly from StockTwits or through one of our API partner integrations. This change is our choice as we do not feel we can follow Twitter’s new rules and continue to create the experience we want for all of our users.”

This could have a negative impact  on both sites and comes after a public battle between Stocktwits and Twitter we reported earlier. Both sites will lose economies of scale from delinking and the smaller site always loses more when positive spillover effects are decreased. Considering the fact that most Twitter users don’t update their status directly and use a solution like Hootsuite or Tweetdeck,  Stocktwits could suffer a short term blip in growth.  Some separation could help Stocktwits anyway as investors are weary of too much social media noise.  The net effect will largely depend on whether the niche investor separation or negative social media network effect has a stronger magnitude.  Users can still update their Twitter page from Stocktwits if the go to the site and select the icon near the status update bar (see above – from the StockTwits blog).

Twitter and LinkedIn are also delinked (no more automatic tweeting) and the impact has yet to be fully analyzed, but the social media business model largely depends on spillovers so something will be lost.

Oh… Stocktwits and Twitter can’t we all just tweet along?

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