Most financial analysts now agree that shared public sentiment on social networks, of either a positive or negative nature, can dramatically affect a brand’s value. Tracking and influencing within social media therefore, is becoming a priority for forward-thinking companies keen to reap the benefits of stakeholder engagement.

63% – Percentage of UK finance professionals that believe valuation of individual stocks is linked to public social sentiment[1]

$1.4 million. Amount that can be eroded from average market capitalisation by negative online chatter[2]

$14. Temporary rise in stock value of Toyota for every 100 positive brand sentiments on Twitter, revealed by a study. Coca-Cola’s rose by $8[3]

1-6 days. Time it takes for effect to wear off, indicating need for brands to constantly engage on social media[4]

Danske Bank. Suffered temporary share price dive after false reports of major trading loss circulated on Twitter in 2011[5]

$60 billion. Fall in value of Russian stock market when rumours flooded social media about troops moving into Crimea[6]

2 minutes. Time it took for $136 billion to be wiped from S&P500 Index after fake White House tweet from hacked Bloomberg account[7]

$1. Rise in price of West Texas Intermediate Oil to almost $92 when false news about Syrian President came through Twitter[8]

2nd. Placing in list of China’s most valuable brands of noodle-maker Master Kong, which saw massive and prolonged fall in stock price after false rumours on Sina Weibo linked it to controversial Diaoyu Islands dispute[9]

One fifth. Stock value lost by News Corp in July 2011 after phone-hacking scandal. Much of the campaign against the company was driven over social media[10]

13% – Netflix share price advance after CEO announced new viewer milestone on Facebook[11] 30mins – Time it took for Qantas shares to dip 12-15c after fake tweet about a plane crash

1 week – Time it took for share price to recover[12]

51,000 guitars. Could have been bought for the $180 million drop in United Airlines share price after musician Dave Carroll’s song about them breaking his instrument went viral[13]

10 cents – Share price tumble after infamous Dominos employees’ Youtube video drew outrage[14]

Pink Slime – 2011 social media furore over cheap beef slated by Jamie Oliver caused share prices of manufacturer BPI and McDonalds to slump[15]

Nestle – Poor handling of Greenpeace’s assault on social media sees share price fall in 2010[16]

Contact us for an informal discussion about social media data in financial services.

[1] Are stock prices affected by social media? – FTSE Global Markets
[2] Forget sticks and stones – turns out bad words can definitely hurt companies – The Star
[3] Social Media Affects on Share Price – Business Essentials
[4] Social Media Affects on Share Price – Business Essentials
[5] Danske Bank’s Twitter Tuesday – Investis
[6] How investors should react to events unfolding in Ukraine – Financial Post
[7] A Fake Tweet Sinks the Dow for an Instant – Businessweek
[8] A Fake Tweet Sinks the Dow for an Instant – Businessweek
[9] Master Kong: How Internet rumours can affect share prices – Danwei
[10] News Corp shares fall as pressure grows – BBC
[11] Netflix faces SEC probe over Facebook post – CNN Money
[12] Opinion: Social media’s effect on share price – Australian Institute of Company Directors
[13] United Airlines Lose MIllions Following Youtube Complaint Song – White
[14] Opinion: Social media’s effect on share price – Australian Institute of Company Directors
[15] Effective Tracking of Social Media: An Early Warning System, Garg, S and Gandhi, U, 2014, Infosys Lab Briefings – Infosys
[16] Nestle Vs. Greenpeace: Social Media – Slideshare

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