Case Study #1

"FTC Files Case Over Licensing Practices"

Qualcomm Inc.

News Event

January 17, 2017 at 1:20:00 pm (EST) — The Federal Trade Commission (“FTC”) releases a press release that they’ve filed a complaint in federal district court charging Qualcomm Inc. with using anticompetitive tactics to maintain its monopoly in the supply of a key semiconductor device used in cell phones and other consumer products.

Read The Press Release

Market Alert

A few seconds after the press release, NewsHedge alerted its clients to the unusual trading event at 1:20:33 pm (EST) as shares instantly dropped from $66.66 to $66.03.

QCOM Squawk: Qualcomm Spiking Chart showing QCOM activity

Social Context

As news broke, Wall Street instantaneously took to Twitter to share information. According to Metricle's quantitative Twitter data, Twitter posts for Qualcomm produced a negative “sell” signal—as visually seen below.

QCOMM Twitter Analytics

Alpha Generation

Over the next several trading sessions, our quantitative data continued to produce a negative “sell” signal—giving our clients even more conviction to remain short, or to add to their short position.

Chart showing QCOM weekly activity

Systematic Trading Data

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