Note to The Motley Fool - You're Missing your Opportunity with CAPS.
At the top of Seeking Alpha's homepage, they have added a hyperlink that redirects to a WSJ article. The article is titled: "Study: Crowd Sourced Stock Opinions Beat Analysts, News."
Here's a passage from the article:
"Researchers from City University of Hong Kong, Purdue University and Georgia Institute of Technology found that the tone of stock market opinion blogs published on investor forum Seeking Alpha predicted stock returns, as well as earnings surprises, above and beyond what was evident from Wall Street analyst reports and financial news articles."
And one more:
"It's clear that we're sitting on valuable data. We need to mine and share more data about what the community is thinking and doing." - Seeking Alpha CEO David Jackson
Seeking Alpha probably just doubled their site traffic with this article. They get it and they're doing it.
In the article, there is no mention of The Motley Fool or CAPS. No mention of the fact that readers of CAPS blogs can look at authors' actual stock picks. No mention of the fact that authors are given a score based on the success of their stock picks. No mention that stocks are ranked 1-5 stars based on red and green thumbs from rated CAPS players.
Why isn't there a WSJ article tited: "Study: Crowdsourced Stock PICKS Beat Analysts, News?"
The Motley Fool's latest ideas for traffic and revenue growth aren't stemming from innovation around creating the world's best stock opinion/selection/thought leadership forum. Their latest ideas for revenue growth include a Motley Fool Credit card with a 14% APR.
Earth to The Motley Fool: if you don't know what to do with CAPS, hire a consulting firm to help you out. It doesn't have to be McKinsey, you could hire IBM. They specialize in data utilization. Stop trying to catch up to Seeking Alpha. You need to one-up them. But you have to do it with CAPS - otherwise you have no competitive advantage.
On a side note: are there any code/tech/startup guys on this site that think they could recreate CAPS elsewhere (with a few tweaks, obviously)? I realize this concept was really groundbreaking 10 years ago, but is it that difficult to create, now?