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Social Media Strategies for Investing

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Social Media Strategies for Investing

How Twitter and Crowdsourcing Tools Can Make You a Smarter Investor

Platinum Press,

15 minutes de lecture
10 points à retenir
Audio et texte

Aperçu

Used smartly, social media channels are serious investment-research tools.


Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

One of the more important changes in investing is happening without the knowledge of many sophisticated investors. Social media, which some see as mostly founts of gossip and silly photos, are crucial sources of new investment information and insights into market sentiment. Wall Street analyst Brian D. Egger explains this emerging development, social media’s new role, and how the uninitiated can take advantage of social media websites and tools to become better-informed investors. He links the apparently innocuous social media moves of millions of people to specific trends that affect investors and explores the interconnectedness of almost everything in business today. getAbstract recommends Egger’s welcome personal-investing insights to traders and investors seeking a new research tool, to businesspeople investigating new avenues, and to anyone interested in media and business trends.

Summary

A Breakout Tool

Social media channels have become useful, important indicators of market trends, the shifting sentiment behind market moves, individual company’s actions, policy changes and business trends. Publicly traded corporations show an increased interest in using social media to communicate about their financial and corporate activities. For example, in January 2014, JCPenney marketers turned heads when they revealed they would use Twitter to announce new marketing campaigns and executive appointments below the senior level – and would no longer issue press releases.

Investors must become more familiar with social media, financial blogs and other resources that combine to make online media serious investing tools. Social media outlets promote new developments in RSS feeds, related applications and online syndication tools, as well as crowdsourced websites that offer investment commentary, financial projections and individual stock picks. Tech companies are developing new analytics that evaluate comments posted on Twitter and other social media streams to gauge investor sentiment.

The Internet’s Impact

The majority of active investors remain unaware...

About the Author

BreakingCall founder and former adjunct professor at the Columbia Business School, Brian D. Egger is a six-time Wall Street Journal “Best on the Street” analyst.


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