Social media commentary, satellite imagery and GPS data are a part of ‘alternative data’, that is, data that originate outside of the standard repertoire of market data but are considered useful for predicting stock prices, detecting different risk exposures and discovering new price movement indicators. With the availability of sophisticated machine-learning analytics tools, alternative data are gaining traction within the investment management and algorithmic trading industries. Drawing on interviews with people working in investment management and algorithmic trading firms utilizing alternative (...) data, as well as firms providing and sourcing such data, we emphasize social media-based sentiment analytics as one manifestation of how alternative data are deployed for stock price prediction purposes. This demonstrates both how sentiment analytics are developed and subsequently utilized by investment management firms. We argue that ‘alternative data’ are an open-ended placeholder for every data source potentially relevant for investment management purposes and harnessing these disparate data sources requires certain standardization efforts by different market participants. Besides showing how market participants understand and use alternative data, we demonstrate that alternative data often undergo processes of prospecting and assetization. We further contend that the widespread embracement of alternative data in investment management and trading encourages a financialization process at the data level which raises new governance issues. (shrink)

During the second half of the twentieth century, several philosophers of technology argued that their predecessors had reflected too abstractly and pessimistically on technology. In the view of these critics, one should study technologies empirically in order to fully understand them. They developed several strategies to empirically inform the philosophy of technology and called their new approach the empirical turn. However, they provide insufficient indications of what exactly is meant by empirical study in their work. This leads to the critical (...) question of what counts as an empirically informed philosophy of technology in the empirical turn. In order to answer this question, we first elaborate on the problems that the empirical turn philosophers tried to address; secondly, we sketch their solutions, and, thirdly, we critically discuss their conceptions of empirical study. Our critical analysis of the empirical turn contributes to new efforts to engage in an empirically informed philosophy of technology. (shrink)