Twitter Strategic Assessment - Studied the business model, assessed the company's financial health analyzing EBITDA and other metrics, did a macroeconomic analysis using techniques like SWOT and PESTLE analysis, did a 2-year forecast of the company and made strategic recommendations
Acquisition of Twitter - The best way out?riahsathe
Twitter has bleeding financials, instability due to leadership and fierce competition. After conducting a macroeconomic analysis, financial forecast and competitive analysis, We present our assessment of the company's future.
Disclaimer - These views entirely represent our own and does not represent the views of our current or former employers in any way. This report is the outcome of an academic study,
How Recruiters Engage on Twitter | Social Insights ReportLeadtail
Imagine if you could listen to the daily conversations of recruiters… How would you use what you heard to better reach, engage, and influence these HR professionals to take the actions you care most about?
For example, would it provide you insights into where to advertise, what content to create, who to build relationships with, and how best to develop and implement your social media strategy? Sure it would.
We created this Recruiters on Twitter report to provide you with social media insights to help you make more informed decisions for reaching, engaging, and influencing these Human Resources professionals.
Financial Analysis and characterization of Twitterriahsathe
Twitter Inc. emerged as a leader in real-time data distribution. With a great product, Twitter has a powerful brand image. However, the company has a weak financial status. In addition to $2.26 Billion in debt, Twitter Inc has low margins, stagnated growth and is heading to a financial decline.
In this report, we aim to provide a detailed analysis of the financial health of Twitter Inc. and the financial characterization of the business.
Twitter Strategic Assessment - Studied the business model, assessed the company's financial health analyzing EBITDA and other metrics, did a macroeconomic analysis using techniques like SWOT and PESTLE analysis, did a 2-year forecast of the company and made strategic recommendations
Acquisition of Twitter - The best way out?riahsathe
Twitter has bleeding financials, instability due to leadership and fierce competition. After conducting a macroeconomic analysis, financial forecast and competitive analysis, We present our assessment of the company's future.
Disclaimer - These views entirely represent our own and does not represent the views of our current or former employers in any way. This report is the outcome of an academic study,
How Recruiters Engage on Twitter | Social Insights ReportLeadtail
Imagine if you could listen to the daily conversations of recruiters… How would you use what you heard to better reach, engage, and influence these HR professionals to take the actions you care most about?
For example, would it provide you insights into where to advertise, what content to create, who to build relationships with, and how best to develop and implement your social media strategy? Sure it would.
We created this Recruiters on Twitter report to provide you with social media insights to help you make more informed decisions for reaching, engaging, and influencing these Human Resources professionals.
Financial Analysis and characterization of Twitterriahsathe
Twitter Inc. emerged as a leader in real-time data distribution. With a great product, Twitter has a powerful brand image. However, the company has a weak financial status. In addition to $2.26 Billion in debt, Twitter Inc has low margins, stagnated growth and is heading to a financial decline.
In this report, we aim to provide a detailed analysis of the financial health of Twitter Inc. and the financial characterization of the business.
There are 2.5 billion Millennials globally, today in 2015.
Millennials are the biggest consumer group of all. They are also driving change in every industry, especially mobile. From Twitter usage data to smartphone ownership, use these 15 statistics about the Millennial mobile owner in your next presentation.
All these statistics come from my new Total Youth Mobile Report 2015. Get a sneak peak here...
Marketingcharts Social Media Data Stacks PptDainaz Illava
View this brand new presentation by Hubspot: 45 Amazing Social Media Charts & Graphs. It will give the latest data and insights into the incredible reach and influence of social media. Pl share.
Signal Leadership Communication Inc. (SLC), a social public relations firm for executives and companies dealing with digital disruption, today released the results of a new study of how leading Canadian chief executives are using – and not using – social media. The Signal Social CEO Index is based on the Canadian Business magazine list of Canada’s Top 100 highest-paid CEOs (published on January 4th 2016).
Online Marketing 101 for Self Storage Operators in AsiaMWI Hong Kong
Slideshow for a presentation given 26 March, 2014 in Hong Kong to the Asia Self Storage Expo on the topic of online marketing. The idea was to give attendees a perspective on why online marketing in Asia is so important, and how SEM, SEO, and social media can help grow their businesses in this region.
Social Media Insights: 2018 Social Media Trends and Analytics Implications | ...PaloServices
In this presentation, Marina Grapsa, Client Service Director at PaloServices, focused on analyzing four (4) trends in social media that drive social media insights. Particularly:
1. Brands are turning into broadcasting technology and videos in replace of writing and publications.
2. The rise in the impact of influencers and micro-influencers as a result of the public's lack of public confidence in media, social media and institutions.
3. The influence and development of Artificial Intelligence, which helps automate and facilitate understanding and customer service.
4. The momentum for Social Data, where brands seem to show more emphasis on social media insights and try to get a piece of the channels themselves.
Finally, Mrs. Grapsa referred to the kinds of analysis that can be made in social media, but she also provided some useful tips for a successful Social Media Insights analysis and export, practices that are used and evolved continuously by PaloPro.
Learn more about PaloPro, the most user-friendly Social Media Monitoring Tool, at https://palopro.io
Rise of the machines: Social media meets Artificial intelligenceArmend Ukshini
How does social media use our data to make money from us? How does AI influence our buying decisions through ad targeting? How are bots used in customer service? How is Youtube fighting terrorism? Does social media know us better than our friends? How is Facebook trying to prevent suicide? How has Pinterest visual search transformed itself from a social media into an e-commerce? How will the social media of the future be based on a virtual environment?
Trying to give an answer to the questions of one of the hottest topics on technology and media ‘Rise of the machines: Social media meets Artificial intelligence’ at KosbitTalks.
In April 2013, the Securities and Exchange Commission (SEC) cleared public companies to use social media outlets such as Twitter and Facebook to
announce key information in compliance with Regulation Fair Disclosure (Regulation FD), “so long as investors have been alerted about which social media will be used to disseminate such information.”
Regulation FD requires companies to distribute material information in a manner reasonably designed to get that information out to the general public broadly and non-exclusively. It is intended to ensure that all investors have
the ability to gain access to material information at the same time.
How to Use Online Intelligence As Part of a Total Media StrategySocial Strategy1
"How To Use Online Intelligence As Part of a Total Media Strategy ”
The webinar explores the importance and growing influence of not only social media, but total media –including traditional publications, virtual communities, multimedia, blogs, message boards, and opinion sites–and how organizations can leverage total media intelligence to inform and track marketing programs including product development, advertising, and competitive analysis.
Sponsored by Social Strategy1 and Write2Market
There are 2.5 billion Millennials globally, today in 2015.
Millennials are the biggest consumer group of all. They are also driving change in every industry, especially mobile. From Twitter usage data to smartphone ownership, use these 15 statistics about the Millennial mobile owner in your next presentation.
All these statistics come from my new Total Youth Mobile Report 2015. Get a sneak peak here...
Marketingcharts Social Media Data Stacks PptDainaz Illava
View this brand new presentation by Hubspot: 45 Amazing Social Media Charts & Graphs. It will give the latest data and insights into the incredible reach and influence of social media. Pl share.
Signal Leadership Communication Inc. (SLC), a social public relations firm for executives and companies dealing with digital disruption, today released the results of a new study of how leading Canadian chief executives are using – and not using – social media. The Signal Social CEO Index is based on the Canadian Business magazine list of Canada’s Top 100 highest-paid CEOs (published on January 4th 2016).
Online Marketing 101 for Self Storage Operators in AsiaMWI Hong Kong
Slideshow for a presentation given 26 March, 2014 in Hong Kong to the Asia Self Storage Expo on the topic of online marketing. The idea was to give attendees a perspective on why online marketing in Asia is so important, and how SEM, SEO, and social media can help grow their businesses in this region.
Social Media Insights: 2018 Social Media Trends and Analytics Implications | ...PaloServices
In this presentation, Marina Grapsa, Client Service Director at PaloServices, focused on analyzing four (4) trends in social media that drive social media insights. Particularly:
1. Brands are turning into broadcasting technology and videos in replace of writing and publications.
2. The rise in the impact of influencers and micro-influencers as a result of the public's lack of public confidence in media, social media and institutions.
3. The influence and development of Artificial Intelligence, which helps automate and facilitate understanding and customer service.
4. The momentum for Social Data, where brands seem to show more emphasis on social media insights and try to get a piece of the channels themselves.
Finally, Mrs. Grapsa referred to the kinds of analysis that can be made in social media, but she also provided some useful tips for a successful Social Media Insights analysis and export, practices that are used and evolved continuously by PaloPro.
Learn more about PaloPro, the most user-friendly Social Media Monitoring Tool, at https://palopro.io
Rise of the machines: Social media meets Artificial intelligenceArmend Ukshini
How does social media use our data to make money from us? How does AI influence our buying decisions through ad targeting? How are bots used in customer service? How is Youtube fighting terrorism? Does social media know us better than our friends? How is Facebook trying to prevent suicide? How has Pinterest visual search transformed itself from a social media into an e-commerce? How will the social media of the future be based on a virtual environment?
Trying to give an answer to the questions of one of the hottest topics on technology and media ‘Rise of the machines: Social media meets Artificial intelligence’ at KosbitTalks.
In April 2013, the Securities and Exchange Commission (SEC) cleared public companies to use social media outlets such as Twitter and Facebook to
announce key information in compliance with Regulation Fair Disclosure (Regulation FD), “so long as investors have been alerted about which social media will be used to disseminate such information.”
Regulation FD requires companies to distribute material information in a manner reasonably designed to get that information out to the general public broadly and non-exclusively. It is intended to ensure that all investors have
the ability to gain access to material information at the same time.
How to Use Online Intelligence As Part of a Total Media StrategySocial Strategy1
"How To Use Online Intelligence As Part of a Total Media Strategy ”
The webinar explores the importance and growing influence of not only social media, but total media –including traditional publications, virtual communities, multimedia, blogs, message boards, and opinion sites–and how organizations can leverage total media intelligence to inform and track marketing programs including product development, advertising, and competitive analysis.
Sponsored by Social Strategy1 and Write2Market
Next Generation Social Media: Alignment of Business Processes and Social Inte...Vinay Mummigatti
As enterprises try to catch up with the social media buzz, many companies are starting to realize that it is difficult to define tangible business outcomes around social media investments. Social intelligence and social analytics are new con- cepts which have the potential to help enterprises move beyond basic marketing and define a goal-oriented strategy around social media.
The next wave of social media investments will be in enterprise programs that are designed to facilitate participation in social media interactions, analyzing the data generated and taking real time actions that govern product, marketing, distribu- tion and pricing processes.
The larger ecosystem of any enterprise includes business partners, employees and customers. Each of these constituents plays an important role in processes that govern innovation, customer experience, collaboration, supply chain, talent management and overall business growth. Social media is emerging as the glue that binds these groups and creates tidal waves that can make or break the fu- ture of any company. The only way organizations can ride this wave successfully is to track the social interactions, derive events and patterns that can lead to business process improvements across different functional areas. Another aspect of social media which is internal to an enterprise is in terms of collaborative busi- ness processes where collective knowledge sharing and decision-making is greatly enhanced through social tools.
Certain emerging trends in technology such as the collaboration between social media and mobile technology providers have created a revolution in the adoption rate of social media. The confluence of social media and mobile technologies is creating upheaval not just in competitive dynamics but also across social and po- litical spheres.
The focus of this paper is to enable organizations to define a strategy around Social Media and tie it to measurable outcomes as defined by core processes that are critical to the survival and growth of any enterprise.
The benefits and risks of social media for financial communications (2)Business Wire
Financial communications have changed a great deal since the dawn of the commercial internet. And we're not done yet. In this research report, we review the history of financial disclosure, assess the risks associated with disclosure via today's social channels, and discuss the wide range of ways today's financial communicators can expand the visibility and impact of issued news via these same social channels.
This is a great read for anyone who does social media, investor relations or public relations for a publicly traded company.
Interested in RegFD? This paper is for you!
The last couple of years have seen significant impact of social media on stock markets, in general, and specific stocks in particular. This White Paper explores how new-age investors can leverage various social forums and new-media sources to get an edge in the stock market.
Investor Relations & Emerging Media – Presented at the NIRI Capital Area Chap...Michael Pranikoff
Investor Relations (IR) & Emerging Media: Presentation given by PR Newswire Global Director of Emerging Media, Michael Pranikoff, to the National Investor Relations Institute (NIRI) Capital Area Chapter ( Washington D.C.) on September 28, 2011
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the what's app number of my personal pi vendor to trade with.
+12349014282
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the what'sapp contact of my personal pi merchant to trade with.
+12349014282
1. CAPITAL MARKET
1255
Impact of Social Media on Capital Market
Efficient Market Hypothesis (EMH) theory states that stock prices are basically driven
‘news’ type of information. And social media platforms offer unique features to communicate
directly and immediately with any individual or corporate. A number of studies and surveys
have revealed that stock markets are very sensitive to any news and social media acts as a
catalyst to spread news and opinions. With the high speed of news spread, large amplification
of its reach and increasing propensity of general public to consume data over social platform,
social media is likely to have a great impact on the capital market. Read on to know more...
CA. Namrata Kirit Shah
(The author is a member
of the Institute. She can be
reached at namratakshah@
gmail.com)
w ww.ica i.org
Social Media
Social Media platforms offer unique features to
communicate directly and immediately with any
individual or corporate. With easy access of social
media sites through mobile and laptops, social
platforms like Facebook, Twitter, Google+, pinterest
and many others are increasingly used by large number
of people to share information, news and thoughts.
People are freely expressing their opinions and sharing
information about investment on online forums, micro
blogs and on social networks. So, the news becomes
viral within a fraction of seconds. Thereby, social
sites, which can be regarded as an extension of wordof-mouth information spread, has given everyone
the power to influence opinions of others and in turn
influence other’s purchase. Social sites act as an
indicator of people’s mood and enable investors to
learn about other people’s opinions regarding stocks
and index.
THE CHARTERED ACCOUNTANT feb r u a r y 2014 123
2. 1256
CAPITAL MARKET
Capital Market
Efficient Market Hypothesis (EMH) theory states
that stock prices are basically driven ‘news’ type of
information. The strongest form of EMH assumes
that current stock price fully reflects all public and
private information. Any new information is quickly
and properly reflected in the market prices. The
major factor impacting stock price – ‘news’ is highly
unpredictable. Further, news cannot be predicted with
accuracy. In addition, the mosaic theory suggests
that analysts may look for early indicators to predict
changes in economic or company-specific indicators
that may affect stock prices.
Behavioural finance is a combination of traditional
finance, psychology and neuro-economics. It focuses
on how individuals behave and make financial
decisions. Extending this anomaly to capital market,
it can be assumed that the public mood and sentiment
can drive stock market movements. In other words,
capital market is based on sentiments. Social media
acts as a hub of information related to people’s mood.
Also, humans are more likely to follow the behaviour
of their peer, especially when the market is uncertain.
This accelerates the impact on people’s sentiment
on stock prices. Thereby, market participants can
pick an early signal related to sentiments and moods
from online social media like blogs, Twitter feeds or
Facebook post.
Social Media enables quick spreading of news and
opinions, which forms the basis of movement in stock
prices. A recent study1 concluded that social trading
was more profitable than individual trading.
In India, companies disclose all corporate
information to shareholders through its website. In
addition, many companies are using the social media to
promote their product or services, communicate with
their customers and build their corporate brandsA.
Detailed below are few of the incidents on social
media across the globe that have impacted the capital
market. None of the incidents (similar to those
mentioned below) has impacted the Indian capital
market. However, to ensure that the Indian Capital
Market is protected from any similar cases, SEBI2 has
disclosed that it is working on guidelines for use of
social media by corporate. There is greater likelihood
that the social media would be increasingly preferred
to seek investment advice as India is estimated to have
the largest population over Facebook and Twitter by
20163.
However, learning cues can be taken from events
that occurred in developed countries.
1.Netflix Inc. (NASDAQ: NFLX)
Event - July 5, 20124: Reed Hastings, the CEO of
Netflix, posted on its Facebook page that they have
more than 2 lakh subscribers. His post was related
to its content licensing team, as the company’s
customers has streamed more than 1 billion hours of
video in June 2012. This data relating to viewership
is non-public information. This information was not
disclosed to the regulatory body prior to its disclosure
over Facebook. Neither had the company indicated
that such information would be shared through the
Facebook page.
Impact: This Facebook post led to an increase in
Netflix’s share prices from $70.4522to $81.72 in a day.
Lesson: Here, the non-financial information related to
the company was released by CEO through its personal
profile page. This incident induced SEC to revisit its
policy for corporate disclosure, thereby permitting
companies to use the social media5 website like
Facebook and Twitter for corporate communication
and disclosures, provided the market participants are
aware of the medium that the company would use to
disclose information.
The following points highlight factors that should
be considered while releasing corporate information
through social media:
• Who would be responsible to make the information
public over web or social media?
• Whether the corporate information must be
released through corporate account or whether the
key personnel of the company have the rights to
release non-public information on their personal
social media accounts6.
• If the information is released through personal
Wei Pan, Yaniv Altshuler and Alex (Sandy) Pentland Decoding Social Influence and the Wisdom of the Crowd in Financial Trading Network, MIT Media
Lab http://web.media.mit.edu/~yanival/socialcom12.pdf
2
Palak Shah, Economic Times, ‘Sebi to issue social media norms to avoid unofficial disclosures on Facebook, Twitter’, Apr 3, 2013 http://
articleseconomictimes.indiatimes.com/2013-04-08/news/38374039_1_insider-trading-regulations-sebi-social-media
3
PTI, The Financial Express, ‘Facebook, Twitter craze runs through India, set to be crowned as world No. 1’, Nov 20, 2013 http://www.financialexpress.
com/news/facebook-twitter-craze-runs-through-india-set-to-be-crowned-as-world-no.-1/1197267/0
4
Steven Russolillo, The Wall Street Journal, ‘Netflix Shares Surge; Option Activity Jumps’, Jul 5, 2012 http://blogs.wsj.com/marketbeat/2012/07/05/netflixshares-surge-option-activity-jumps/
5
Joshua Gallu, Bloomberg, ‘SEC Approves Using Facebook, Twitter for Company Disclosures’ http://www.bloomberg.com/news/2013-04-02/secapproves-social-media-use-for-companies-material-disclosure.html
6
Emily Chasan The Wall Street Journal ‘Companies Take Cautious Approach to Social Media disclosures’, Apr 8, 2013 http://blogs.wsj.com/
cfo/2013/04/08/companies-take-cautious-approach-to-social-media-disclosures/?mod=google_news_blog
1
1 2 4 T H E C H A RT E R E D AC C O U N TA N T f ebruary 2 0 1 4
w w w. i c a i . o r g
3. CAPITAL MARKET
account of key personnel, whether the
company is required to inform the investors
about the same.
To ensure that company material information is not
leaked, it is important that companies have a social
media compliance strategy for corporate disclosure in
place. Such a strategy must include information related
to :
• The person responsible for the company’s social
media activity
• List out the social media platforms where the
company or its key personnel has presence
• Whether all social media channels be allowed to
disclose information or selected list of permissible
social media channels be allowed
• Information about timing of release of corporate
information – financial or non-financial over social
media
• Whether the information released on social media
is supplementary to traditional media or would
replace traditional means of corporate disclosure.
• Whether the disclosures are in accordance with the
regulatory framework.
In the Indian context, the decision whether or not to
release material on non-public information through
social media must be made after considering the
computer literacy and tech-savvy nature of investors
and market participants. So that no shareholder or
interested party is less privileged in accessing the
information.
2. Apple Inc. (NASDAQ: AAPL)
Event - August 13, 20137: Carl Icahn (investor)
released tweets that related to his interest in Apple
stock, relation of Apple stock price and its valuation
and his conversation with Apple CEO Tim Cook. The
tweet highlighted stock buyback plan. It gained a lot of
attention among investors, analysts and other market
participants. As of September 2013, he owned 3.88
million8 shares of Apple.
Impact: Icahn's tweet pushed the stock up from
$475.76 to a high of $494.66 within an hour, thereby
increasing the market capital of stock by $17 billion.
Lesson: In this case, the information related to
1257
stock trading is disclosed by prospective investor over
twitter. Additional points to be considered in the social
media compliance strategy would include:
• Whether the company is required to monitor
information shared through investor blogs and
other social media
• If the company is aware of such post or any sites
offering investment advice regularly, what steps
must be taken by the company.
3. Twitter Inc. (NYSE: TWTR)
Event – September 12, 20139: Twitter disclosed that it
has filed papers for IPO through tweet.
Lesson: In this case, the material corporate information
was disclosed to public through tweet. This draws
attention to the nature of information that can be shared
through the social media.
• Whether a disclosure related pending corporate
financial announcements, market sensitive
information, material financial and non-financial
transactions, and market speculation would be
disclosed through the social media
• Whether the company can disseminate all material
non-public information – quarterly financial
information, acquisition or merger, achievement
of key milestone or new contract through social
media.
• Whether the market participants are required to
know in advance10, the means of communication
that companies would use to disseminate specific
information. So the parties looking for information
are aware of the search they need to do to receive
the information.
4. Domino's Pizza, Inc (NYSE: DPZ):
Event – April 15, 200911 : Two Domino’s employees
posted on YouTube video demonstrating health
department violations while preparing foods. The
video went viral and was viewed over 1 million times.
The discussion about this video was spread through
Twitter.
Impact: The Domino’s stock price dropped by
10%12 during the incident period.
Lesson: In this case, the information was shared
Aaron Pressman, The Exchange – ‘Carl Icahn’s Multibillion-Dollar Tweet Boosts Apple Stock’, Aug 13, 2013 http://finance.yahoo.com/blogs/theexchange/carl-icahn-multibillion-dollar-tweet-boosts-apple-stock-205938760.html
8
Reuters, Carl Icahn Owned 3.9 Million Shares Of Apple As Of September 30, Nov 15, 2013 http://www.businessinsider.in/Carl-Icahn-Owned-3-9-MillionShares-Of-Apple-As-Of-September-30/articleshow/25828957.cms
9
Twitter Files for Initial Public Offering, The Wall Street Journal, Sep 12, 2013 http://online.wsj.com/news/articles/SB10001424127887323392204579071
511038487586
10
SEC Issues Guidance on Use of Social Media to Disseminate Corporate Information, Apr 15, 2013 http://www.gibsondunn.com/publications/pages/
SEC-Issues-Guidance-on-Use-of-Social-Media-to-Disseminate-Corporate-Information.aspx
11
Stephanie Clifford, The NewYork Times, Video Prank at Domino’s Taints Brand, Apr 15, 2009 http://www.nytimes.com/2009/04/16/business/
media/16dominos.html
12
Tony Sousa, Acceleration Media, Online reputation risks should be managed from the top http://www.accelerationmedia.co.za/newsroom/onlinereputation-risks-should-be-managed-top
7
w ww.ica i.org
THE CHARTERED ACCOUNTANT feb r u a r y 2014 125
4. 1258
CAPITAL MARKET
In an event dated April 15, 2009, two Domino’s
employees posted on YouTube a video demonstrating
health department violations while preparing foods.
The video went viral and was viewed over 1 million
times. The discussion about this video was spread
through Twitter. The impact was that the Domino’s
stock price dropped by 10% during the incident
period.
by employees through their personal account. To
ensure that company’s brand image is not distorted by
any of its employees, it is important that companies
have social media guidelines for officers and other
employees. Such guidelines must include information
related to:
• Whether social media guidelines relates to policies
for officers and key employees who have access to
material, non-public information
• Whether the employees are educated about the
type of information to be disseminated through the
social media and application of the securities laws.
• Whether the designated person be held responsible
to identify whether material non-public information,
if any, is published on the social media by officers
or key employees
• Whether the interest of its clients, business partners,
suppliers or any related party is affected by any of
the company’s disclosure over the social media.
5. Audience Inc. (NASDAQ:ADNC):
Event - January 29, 201313: A tweet was posted from
@Mudd1waters (fake handle posing as Muddy Waters
Research) stating that that audio company Audience
was under investigation by the Justice Department
on rumoured fraud charges. Though, Muddy Waters
confirmed it did not send such a tweet about Audience.
The Company chose not to respond to this tweet.
Impact: Within two minutes, Audience’s
stock price fell from $12.0 to $8.87 with
300,000 shares transaction. The stock trading
was later halted.
Lesson: In this case, fake information about the
company was released from fake twitter handle
of muddy water, a short-selling firm. To minimise
corporate loss from similar incidents companies must
have risk mitigation strategy in place. Such strategy
must include steps that must be implemented quickly
by the company:
• If any material non-public information is leaked
prematurely in the market via social media
• If rumours are flourishing in the market related to
price sensitive information.
Further, to facilitate market participants to distinguish
between fake and original corporate identity,
information related to official Facebook page, Twitter
account and other social media channels along with
related links can be provided on the corporate website.
6. United Airlines, subsidiary of United Continental
Holdings Inc (NYSE:UAL)
Event – 200814: United Airlines passenger Dave
Carroll’s guitar was mishandled by the Airlines’
baggage handling staff. Carroll’s guitar was broken.
After his repetitive follow up with the customer
support of the Airlines for reimbursement failed,
Carroll expressed his wrath through a song and posted
it on YouTube. The video went viral with over 11
million views.
Impact: United Continental stock price plunged
10%, which is equal to losing $180 million in market
capital.
Lesson: This incident highlights that even a
non-financial event has great power to impact
stock prices.
7. Associated Press (AP) and Dow Jones industrial
average
Event - April 201315: A fake tweet was released from
Hoax tweets send Audience shares at twitter Reuters, Jan 29, 2013 http://www.reuters.com/article/2013/01/29/us-audience-sharesidUSBRE90S11T20130129
14
United Breaks Guitars': Did It Really Cost The Airline $180 Million? http://www.huffingtonpost.com/2009/07/24/united-breaks-guitars-did_n_244357.html
15
Heidi Moore and Dan Roberts, theguardian.com, ‘AP Twitter hack causes panic on Wall Street and sends Dow plunging’, Apr 23, 2013 http://www.
theguardian.com/business/2013/apr/23/ap-tweet-hack-wall-street-freefall
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5. CAPITAL MARKET
a hacked twitter account of Associated Press (AP) –
US news organisation. The tweet relates to explosions
in the White House and injury of Obama. Within
fractions of a second, the tweet reached 1.9 million16
AP followers.
Impact: The single tweet jittered Dow Jones
industrial average with index falling from 14,69717 to
14,554, losing 143 points, or 1%.
Lesson: The incident highlights the impact of
algorithm programme which is based on positive
and negative words in news. The event suggests that
total reliance cannot be placed on automated trading
system. Further, this incident also draws attention to
the importance of policy related to automatic trading
system, routine maintenance and test of such trading
system along with disclosures related to proper
functioning of automated system.
The above list of incidents highlight the increased
use of social media websites like Facebook and Twitter
in the financial world and the preference of social sites
to send out breaking news. An analysis of the above
incidents indicates that social media has altered the
human habit of consuming information.
1259
Studies18 conducted to analyse the impact of social
media on stock price:
1. Indiana University: A study was conducted
to analyse tweets posted from March 2008 to
December 2008 to predict the movement in Dow
Jones Industrial Average (DJIA). For the purpose of
this study, tweets were segregated into 5 categories
- calm, alert, sure, vital, kind and happy. Analyses
of over 9 million tweets over the duration
indicated that calmness of tweet could predict
movement in DJIA over next week with much
accuracy.
2. Pace University: A study was conducted to track
companies’ activities on Facebook, Twitter and
You Tube for three brands - Starbucks, Coca
Cola and Nike. It tracked data over 10 months.
The study highlighted the existence of correlation
between daily stock price movement and index
of consumer stocks, after including 10 to 30-day
lag into study, thereby suggesting that the social
media could enable the market participant to
predict its movement over the next few weeks and
thereby facilitate alpha generation.
Survey: Post the incident of AP tweet, OneMarketData19
conducted a survey among buy and sell-side
professionals. The result of the survey highlighted
that analysts look for the social media data to capture
alpha in stock price on a daily basis.
Initially, the financial industry felt the
challenge to incorporate social media information into
research. However, with the incremental influence
of social media over capital market, the challenge to
integrate data is overcome with a number of available
products. For instance, Bloomberg20 has initiated
professional services to integrate real-time feeds
and analysing tweets that influence financial market.
Also, Thomson Reuters has a social media specialist
team to build complex algorithm and data mining
tools to gauge market sentiment and calculate
impact on securities prices. In addition, NASDAQ
has launched a mobile application that prominently
incorporates content from StockTwits21. ▪
David Jackson, USA TODAY, Apr 23, 2013 http://www.usatoday.com/story/theoval/2013/04/23/obama-carney-associated-press-hack-whitehouse/2106757/
Bernard Condon and Matthew Craft The Christian Science Monitor, ‘Stocks stumble after a fake tweet announced White House attack’, Apr 23, 2013
http://www.csmonitor.com/layout/set/r14/Innovation/Latest-News-Wires/2013/0425/Stocks-stumble-after-a-fake-tweet-announced-White-House-attack
18
Gnip, Inc. Whitepaper ‘Social Media and Markets: The New Frontier’ http://gnip.com/docs/social-media-and-markets.pdf
19
Capital markets participants bullish on social media data, Jul 26, 2013 http://www.finextra.com/News/FullStory.aspx?newsitemid=25059
20
Bloomberg adds real-time tweet stream to market data desktop, Apr 04, 2013 http://www.finextra.com/News/fullstory.aspx?newsitemid=24694
21
Timm O. Sprenger*, Isabell M. Welpe (2010), ‘Tweets and Trades:The Information Content of Stock Microblogs’, Technische Universität München,
Electronic copy available at: http://ssrn.com/abstract=1702854
16
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