As much as 40% of trading volume is from retail
Social media has altered the way many stocks trade. It’s not just humans who are analyzing the social platforms for ideas, it’s trading algorithms, too.
Contact UsHow do investors discover
stocks on social media?
Investors don’t stick to just one network. They move around.
The decision to buy is made in in the third phase.
1. Finding new trading ideas
Social media is ideal for investors because information is relayed in real time. Some investors will check their favourite traders on Twitter, while others turn to dedicated forums on Reddit.
2. Due diligence and research
In this phase, investors use multiple networks. Research can be a time consuming process, but it can also last seconds. Reddit, Twitter, the company’s website, Google search and Stocktwits play slightly different roles towards the same goal: making a decision.
3. Decision making
Buy, sell or hold? These decisions are made using Reddit, Twitter and Stocktwits. Investors are interested in whether interest and sentiment is increasing or decreasing, as well as any final red flags.
We know that investor marketing is what differentiates “parity stocks”
Balance sheets being equal, the firm with superior investor marketing usually has a 5-10x higher valuation.
Contact Us
Social media impacts valuation:
Investors love stocks that receive more than their fair share of attention.
FACT:
With IPOs, retail investor
participation determines which IPOs “pop” and which ones don’t.
Fact: Once a firm announces it will go public, internet searches on the firm will skyrocket.
In what areas should you increase your investor marketing?
Target Clients
Our investor marketing campaigns include one or more of these media channels:
Contact Us
Contact Us
