Recent news reminded us of the influence of social networks as relevant source of information for Stock Market Businesses. Last week, Elon Musk, CEO of Tesla, generated nearly 1 Billion Dollars in value with one single tweet. That is not the first time that social posts – intended ones or even hacked ones– have considerable impact on Stock Markets activities. Two years ago the U.S. Securities and Exchange Commission (SEC) was officially considering that “postings on sites such as Facebook and Twitter are just as good as news releases and company websites, as long as the companies have told investors which outlets they intend to use.”
Even if the finance world has its own rules and processes, social networks have made their entrance and are now part of the communication strategy of Stock Markets.
Why are social networks so important in Business relations?
The exchange of information is a basic principle in Trading. With the influence of mobile and of the 100% digital publications, online activities have gained leverage at spreading news, especially social media that feature sharing insights and relationships based on trust.
Social Media has become a great tool for finding prospects and building relationships thanks to the information delivered in the shared content. Today, an increasing number of Stock Exchange based companies are using social media to communicate with their shareholders and the investing public.
Which social networks are most influential?
3 social networks are cited today as main sources of influence:
- Twitter is considered as the most influential one – spreading real time short pieces of news.
- Facebook, where it all began, with one of the first cases of social influence on stock markets involving Netflix’s CEO with a post generating a 13% jump in value.
- Although not mentioned by the SEC, LinkedIn is also a great influencer in the B2B landscape helping companies to develop their business network and relationships.
Who can have an influence within your company?
Markets will always trust social posts of company leaders invested in the decision making process. Experience has proven that each social post that impacted stock market price had been published through the official company’s account or the CEO’s account.
The CEO’s account seems to be the preferred channel– where the potential influence of your communication can be risen up by the online reputation built by the decision maker. To be trusted as relevant source of information, you need to make sure your CEO’s profile is mature enough. Is he/she identified as owner and user of his/her account? Is he/she active enough in sharing content and interacting with the target? Is he/she bringing added value in his/her everyday communication?
To go further and improve your company’s social identity, here are some tips you should apply to keep control of Social Media:
Review the basics : set a clear communication strategy for all of your social network channels and stakeholders aligned with all C-levels (Management, Marketing, Sales, Finance)
- Set specific guidance for your management and employees about their online communication and help them tailor their communication to the medium they’re using
- Always consider Social Media in the communication of your key decisions: define the channel, the right stakeholder and the proper time
- Clearly declare to your investors where you are going to make your financial announcements
- Provide quantitative and qualitative content to be trusted by your target