I read an article today stating that Social Media can and does influence the stock market. That article stated that three brands (coke, nike, and starbucks) were researched over a 10 month period and noticed a trend through facebook, youtube, and twitter feeds that the more people who were involved with the fan-base of these companies, the higher the stocks drove for those companies. Consistent interest in these companies through profile pages on these social media sites may well be the new way to build profits of the stocks!
The article also discusses brand loyalty and how it plays a massive part in how a company can build off these websites. If more users are accounted for and use the sites to generate a user interaction, it influences the users to purchase and it also sheds greater light for the companies to learn from the users and their spending habits.
I wonder what this does as a general business idea? Maybe I should invest in some of these stocks as well. Well, I must say, I may need to do more research on how to invest. One question I'll leave with is if these social media sites have an end to what kinds of possibilities they can perform? As social media grows, so does its surroundings.
Here is the link to the article. Enjoy!
http://www.pcmag.com/article2/0,2817,2382391,00.asp
That was a great article, its amazing how much of an impact social media has on companies. The effects from social media can be felt from companies by having "buzz", increased sales, and even a higher stock price! I don't think their is a limit on the possibilities that social media sites have to offer for companies. I feel like we have just touched the tip of the social media ice burg!
ReplyDeleteStock prices are so sensitive all because of speculating, and what a better way to try and convince the market that consumers are all over your product. If that is indeed true, they better be ready to support the social media activity by good quarterly numbers:)
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