Comment by rinze
8 years ago
> This data is sold to whoever wants it. Hedge funds or services who analyze it for hedge funds is the big one. It's normal to track hundreds of millions of people a day and trade stocks based on where they go. This isn't fantasy, it's what happens every day.
I initially thought this was too far fetched but then I started duckduckgoing* and found this: https://www.fnlondon.com/articles/regulators-campaigners-sou...
* If 'googling' is a verb, why not this.
I read just recently that one of Foursquares biggest revenue slices is selling their users check in data to hedge funds. On a previous HN post, one commenter claimed the app Robinhood sells their order flow through clearing houses, which the net result is hedge funds and other such firms trade off of — under the assumption that Robinhood investors are emotional rather than educated.
Hedge funds in general seem like a major consumer of retail data, which makes sense. Home Depot just announced earnings: imagine if you knew exactly how many people went into Home Depot, walked out empty handed, and then went to Lowe’s... how you could profit off that data in the market.