Impact of Social Media on Wall Street

Recently, reality TV personality Kylie Jenner posted a casual opinion of how she has started fancying Snapchat (a multimedia social messaging app) slightly lesser off late. Little did she know that it would cause shake the ‘Snap’ stock price by a massive 6% and cause losses worth $1.3 billion for investors. This example goes on to prove how much socialĀ  media – and it’s protagonist celebrities – can influence a brand’s goodwill and popularity. Any news spreads like wildfire and is spared by no users opinion and comment. Bad publicity on social media can prove to magnify the problem exponentially. Thus, companies must be aware of the dangers bad social media publicity can have towards it brand as well as disaster recovery tools to mitigate the problems when they occur.

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Ever since the advent of social media, various agencies have used the platform to manipulate the stock market. By spreading false, exaggerated and unfounded news, investors have been seen to get influenced and wrongly take buy/sell decisions. Since social media is so popular and prevalent nowadays, any news – whether true or not – is sensationalized and spreads within seconds. Hence, it is crucial to consider the source and credibility of news we read, before taking investing decisions.