Carl Icahn made headlines again on Friday with a short tweet disclosing his 9.53% position in the discount retailer Family Dollar. Investors aware of the financial impact of Icahn's social media messages were quick to react. The short message that linked to an official SEC release circulated with ferocity with over 100 re-tweets plus many more messages referencing the news.
Twitter messages mentioning the Family Dollar company and/or its associate cashtag also sky rocketed shortly after the original tweet was published. Millions of social media users were informed via the twitter handles of major news distributors and other influential sources of information.
Unsurprisingly, the announcement resulted in a drastic stock price fluctuation. Shares closed at $60.53 on Friday prior to the tweet that was published just two minutes after the bell. Stock price then spiked by 9% in after-hours trading to reach an opening price of $68.04 on Monday morning.
Interestingly, Finmaven wasn't only quick to pick up on Icahn's message- the detection system noticed the unusual event before his public announcement. At 4:59pm, three minutes before Icahn's social media announcement, this tweet was published on the Twitter networking site:
On minute after that, at 5:00 on the dot, Finmaven issued the following alert after the system noticed a tweet with an abnormally large reach that included both the cashtag for the company Family Dollar as well as the word "merger".
A few minutes after Icahn personally announced his stake in the company through Twitter, Finmaven issued a second alert. Some of the top tweets, which were included in the alert, made reference to the SEC filing while others communicated excitement.
There is no denying that Carl Icahn is a force to be reckoned with. His chosen communication medium may seem odd to some, but it suits his personality. It is efficient, powerful, and personal. With his recent market moving tweets, Icahn shows the investing community how important it is to have a solid social media analytics tool at your fingertips. Being able to pick up on signals through noisy Twitter and blog chatter is becoming a necessary element of staying informed in financial markets.