How Social Media is Affecting the Stock Market
by Paul Milne
There is no doubting that the explosion of social media over the last decade has had a huge impact on the way that people communicate with each other, and also the way in which companies and organizations engage with the public at large. However, there is increasing evidence to suggest that social media activity is having a measurable impact on the stock market. This is not to say that one tweet has the power to manipulate a stock price – most traders would be too savvy to fall for such an obvious scheme – but social media activity on a larger scale does appear to have this power, and this has altered the way in which companies should be analysed.