Open:FactSet Forum

Application of NLP Brain Sentiment Indicator to four large companies

sentiment
machine-learning
alternative-data
(Francesco Cricchio) #1

News sentiment is one of those financial indicators people that people hear a lot but they rarely see in practice.

We selected four large companies to illustrate the application of our Brain Sentiment Indicator based on Natural Language Processing on financial news.
The considered interval from January 2018 to February 2019.

  1. Microsoft sentiment has been constantly positive: every single week except two over the past 12 months were positive. During the negative week at the end of August a story broke about a bribery probe over sales in Hungary.

  2. Apple’s sentiment chart is more conventional: mostly positive with some ups and downs. For example at the beginning of 2019 the sentiment is negative in relation to the negative results of latest iPhone models.

  3. Facebook’s sentiment chart clearly shows the negative impact of articles associated with the Cambridge Analytica scandal.

  4. Considering now Europe, the news sentiment plot for Deutsche Bank reflects the company’s problems with several executive departures and failed turnaround strategies from the beginning of 2018.

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