Stocktwits, Social Media Platform for Online Investors, Worth $ 210 Million

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Long before Reddit’s WallStreetBets community took the financial world by storm, savvy internet retail traders were gathering in another cyberspace to figure out what stocks could potentially fund their early retirement.

That place was Stocktwits, and on Thursday the social media platform for investors announced it had raised $ 30 million. Valued at $ 210 million, it’s the latest company to bank on Reddit’s year of transformation.

Riding Reddit’s Viral Tails

New York-based Stocktwits was founded in 2008 due to an investment error. Co-founder Howard Lindzon passed up the opportunity to be an early investor on Twitter, but believed the social network would be a great place to discuss stocks and markets.

He and his co-founder Soren Macbeth created Stocktwits using Twitter’s own programming interface, allowing users to follow each other and post market information. They replaced Twitter’s famous hashtags with “cashtags” – a dollar sign followed by a stock symbol (eg $ AMZN for Amazon or $ AAPL for Apple) – something that Twitter itself adopted in 2012. Reddit that took Stocktwits to new heights this year:

  • Stocktwits’ user base grew 50% to 6 million in 2021, including 1 million monthly active users, with online traders looking for more places to follow and talk about investor sentiment.
  • The average Stocktwits user – over 75% of whom are male and under the age of 45 – spends 30 minutes to 120 minutes every day on the platform.

Stocktwits – which makes money selling data to financial firms – is using the new funding to expand its conversations, which already include stocks and cryptocurrencies, to NFTs and collectibles. It also plans international expansions in the stock markets in India, Australia, UK, Brazil and Mexico.

Founder’s Double Dip: The global wealth tech market is expected to grow 14% annually, reaching $ 137 million in 2028, according to research firm Insight Partners. Commonstock, a mobile app for stock traders, based in California, raised $ 25 million in October. Boston-based Zingeroo, which focuses on “healthy dialogue” instead of Reddit and Robinhood as a meme mania, raised $ 8.5 million this week. Among Zingeroo’s investors is Lindzon himself.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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