Click for article -> Social Media Users Love Beer, Really Love Guinness…
Amplicate Research -> Love and Hate Relationship…
This article was written on Nov 17 2011 and discusses the results of research performed by a company called Amplicate. It caught my attention because I believe the tradtional fundamental approach to investing and valuing a company isn’t always the best approach to take when investing. I believe a blend of strategies should be considered including Technical Analysis, Behavioral Finance and Psychology; although fundamental valuation is certainly important.
The article states that over the last year, Guinness had the most “Likes” while Bud Light had the most “Hates”. The respective company stock tickers we could use to look at them are DEO and BUD respectively. By using Google Finance and comparing the two securities in one chart, DEO has consistently outperformed BUD over the last year. Yet since publication, BUD has outperformed DEO.
1. Can social media truly influence the stock price of a company? For the short term and or long term?
2. Is being “Liked” better or worse than being “Hated”
3. Do you think the large financial institutions are considering data from websites like Amplicate into their analysis?