AI Startups: Aether Taps AI to Spot Market Sentiment Shifts in Real Time

Aether Holdings, a New York-based FinTech firm that went public in April, has built an AI-powered investment platform that spots shifts in market sentiment in real time to help investors make better decisions.

The company’s approach combines predictive analytics, large language models, data and tools along with human analysts to guide investors especially in times of market volatility.

“Aether Holdings creates tools for investors to make smart choices. This helps them avoid guessing,” CEO Nicolas Lin said in an interview with PYMNTS. “We have thousands of unique analyses and trading models built over the years.”

For example, its “Alternating Between Stocks and Gold” model draws on decades of data to forecast whether equities or gold are likely to outperform. Thus far, it has delivered notable results.

“This model is our top performer this year, returning 20.23% year-to-date,” Lin said. That compares with 5.9% for the S&P 500 alone.

The model looks through decades of data to see the link between the S&P 500 to gold. “If the S&P-to-gold ratio is above its five-year average, the model favors stocks. If it’s below, it prefers gold,” Lin said.

Aether’s broader platform is designed to simplify complex financial decisions through automation and personalization.

“Aether Holdings combines proven strategies with modern AI and large language models. This gives investors insights that were once only for institutions,” Lin said. “We make complex market decisions simple, systematic and data driven.”

There is a thirst for financial guidance. According to a 2024 PYMNTS Intelligence report, 57% of consumers sought financial advice as rising inflation and stagnant or falling incomes cut into their lifestyles. Moreover, 72% who have never gotten financial advice are now open to it. In this group, 52% plan to get financial advice in the next three years.

The report said people look for financial advice from many places: friends, family and social media. In recent years, consumers have been open to using artificial intelligence for financial guidance: 37% do so and the figure jumps to 61% for Gen Z. Moreover, 31% of investors are “comfortable” implementing financial advice from generative AI without double-checking.

Read also: Navigating Financial Uncertainty: Whose Advice Do Americans Trust?

Investor Behavior as Market Signals

At the core of the Aether’s platform is SentimenTrader, an analytics tool focused on behavioral finance.

“Our main analytics platform, SentimenTrader, analyzes crowd behavior, positioning shifts, and emotional extremes,” said Lin. “It acts as a powerful scanner and predictive engine. It spots chances and market changes before traditional models can respond.”

The company’s Aether Labs processes large amounts of user behavior data, content engagement and market information.

“This allows us to personalize content delivery and refine the ‘signal’ users receive,” Lin said. “Our technology creates a smart system. It analyzes the market and adapts. This way, it gives users precise and valuable information.”

Aether’s vision goes beyond tools and analysis. The company aims to create a self-reinforcing media and data engine in which content consumption feeds analytics, investor sentiment becomes signal and the platform adjusts in real time.

Since its initial public offering (IPO), Aether has moved quickly to expand.

“A key part of this expansion is our recent acquisition of newsletter outlet Alpha Edge Media, which serves multiple purposes for us: It informs investors, acts as a bellwether for investor sentiment by tracking story clicks, and provides a strong avenue for customer acquisition,” Lin said.

The company is developing new publications focused on macro trend analysis and AI-scored stock discovery, according to Lin.

Read more:

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SPACs Riding $4 Billion Wave as IPO Market Struggles

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