Stock Price Manipulation via Social Amplification

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It is ever easier for news, including fake news, to spread via social amplification.

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Stock Price Manipulation via Social Amplification

  1. 1. Stock Price Manipulation Dr. Augustine Fou December 10, 2012 Augustine Fou- 1 -
  2. 2. CNBC Tweet (7/30/13) Augustine Fou- 2 - Source: Business Insider July 30, 2013 “The move comes after a CNBC tweet: "ALERT: Accenture in talks to buy consulting firm Booz & Company; unclear if Booz & Co. has other suitors - DJ"
  3. 3. Fake Tweet (1/30/13) Augustine Fou- 3 - Source: Business Insider Jan 30, 2013 “Shares of Audience Incplunged more than 25 percent in a matter of seconds on Tuesday afternoon before quickly recovering after false reports were posted on social media site Twitter saying the specialty chip maker was being investigated for fraud.”
  4. 4. ICOA Fake Press Release Augustine Fou- 4 - ICOA surged 500% on Nov 26, 2012 and 330 million shares changed hands (daily avg vol was 3 million shares.)
  5. 5. GRPN Takeover Rumor Augustine Fou- 5 - GRPN surged 23% on Dec 7, 2012 on rumor of GOOG takeover
  6. 6. So What? “With social media, news, even fake or incorrect news can spread like wildfire. With lots of small day-traders chasing stocks on the move, any stock price manipulation can be more easily amplified out of control.” - Dr. Augustine Fou November 28, 2012 6
  7. 7. Dr. Augustine Fou – Chief Digital Strategist “I analyze trends and advise clients on getting out in front of them, rather than be a victim to them.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou Slideshares: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefou Augustine Fou@acfou

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