Social media becoming more relevant to investors

Next Story

Will you hesitate to kill a robot?

Social media has dominated lives in many ways, from helping people stay in touch with friends to providing a source of information and means of commerce. Now it is emerging as a potent instrument for investing, according to The Wall Street Journal.

One innovative developer has created a trading platform in Twitter aimed at the typical investor, whilst a number of tech-savvy companies have used social media sites to gauge consumer sentiment on certain brands or companies whose stocks are traded.

However, most investors still source their information directly from the company itself, which is the same method used by investment guru Warren Buffett. This was the finding of a survey by the Brunswick Group.

Specifically, about 57 per cent of 500 sell-side analysts and institutional investors said information directly acquired from firms carries the greatest weight on their investment decisions and recommendations. Notably, around 85 per cent of the respondents ranked direct information as one of the most authoritative sources.

Rachelle Spero, a partner at Brunswick, said: “While investors and analysts are increasingly influenced by digital and social media as the basis for investment decisions, companies and managers should be encouraged that the vast majority look to information direct from companies as the main building blocks of their investment rationales.”

It cannot be denied that social media remains a very relevant tool in the field. In fact, around 14 per cent of respondents stated that social media is one of their most influential sources of information, a notable leap from six per cent during Brunswick’s previous survey in 2011. Moreover, 86 per cent of the respondents said social media is increasingly becoming an important source of investment information.


2015 NEW Allen Bradley 1784-SD2 Secure Digital 2GB SD Memory Card  picture
2015 NEW Allen Bradley 1784-SD2 Secure Digital 2GB SD Memory Card
1pc Modicon PLC PC E984 785 32 48K Memory PCE984785 picture
1pc Modicon PLC PC E984 785 32 48K Memory PCE984785
Intel C7225C E.S. (ES, Engineering Sample) - Bubble Memory Controller - Ex Rare picture
Intel C7225C E.S. (ES, Engineering Sample) - Bubble Memory Controller - Ex Rare
Intel C7225 E.S. (ES, Engineering Sample) - Bubble Memory Controller - Ex. Rare picture
Intel C7225 E.S. (ES, Engineering Sample) - Bubble Memory Controller - Ex. Rare
1671A 102-Channel 70 MHz State/250 MHz Timing Benchtop Deep Memory Logic Analyze picture
1671A 102-Channel 70 MHz State/250 MHz Timing Benchtop Deep Memory Logic Analyze