Social media and the stock market
Posted: Sun Jan 05, 2025 6:18 am
Social media has the power to amplify anything: a new song, a piece of news, an opinion. Everything that hits the web takes on gigantic proportions thanks to the cascading effect provided by sharing and the impact it generates on users.
An amateur singer known only in his neighborhood can become a world star thanks to social media, just as a well-known artist with years of experience can fall into limbo if his attitude is seen as negative and it spreads like wildfire. How many examples of this have we seen over the years?
A study published by Plos One talks exactly about this, how feelings generated on social media cause a gigantic domino effect. And if this happens to people, brands and companies cannot stay out of the avalanche called social media.
Have you ever stopped to think about how social media cameroon phone number data can interfere with the stock market?
One example was what happened to Elon Musk in 2018. The owner of Tesla posted on Twitter that he was going to take the company private and raise the share price 22% above its current price. Investors were thrilled and the shares soared. Later, the entrepreneur received negative criticism and was accused of manipulating information, and the shares plummeted.
This is because, as the news came directly from the company owner, the trust and credibility of the information is seen as high by investors, unlike if the announcement were made by a magazine or economic website, for example. This is something that only social networks provide, this direct channel between company and public, something that was not possible before the internet era.
Another situation where a simple tweet messed up the stocks of a big company was when socialite Kylie Jenner asked online if anyone still opened Snapchat or if she was the only one who didn't do it anymore. Less than two lines on Twitter and the company's stock lost a disastrous $1.3 billion.
And is your company prepared to deal with the fluctuations and feelings caused en masse by social media?
An amateur singer known only in his neighborhood can become a world star thanks to social media, just as a well-known artist with years of experience can fall into limbo if his attitude is seen as negative and it spreads like wildfire. How many examples of this have we seen over the years?
A study published by Plos One talks exactly about this, how feelings generated on social media cause a gigantic domino effect. And if this happens to people, brands and companies cannot stay out of the avalanche called social media.
Have you ever stopped to think about how social media cameroon phone number data can interfere with the stock market?
One example was what happened to Elon Musk in 2018. The owner of Tesla posted on Twitter that he was going to take the company private and raise the share price 22% above its current price. Investors were thrilled and the shares soared. Later, the entrepreneur received negative criticism and was accused of manipulating information, and the shares plummeted.
This is because, as the news came directly from the company owner, the trust and credibility of the information is seen as high by investors, unlike if the announcement were made by a magazine or economic website, for example. This is something that only social networks provide, this direct channel between company and public, something that was not possible before the internet era.
Another situation where a simple tweet messed up the stocks of a big company was when socialite Kylie Jenner asked online if anyone still opened Snapchat or if she was the only one who didn't do it anymore. Less than two lines on Twitter and the company's stock lost a disastrous $1.3 billion.
And is your company prepared to deal with the fluctuations and feelings caused en masse by social media?