Should you be Using Social Media with your Investing?

Public companies are becoming much more integrated with social media, and so should you. Last July, Netflix CEO Reed Hastings announced on his personal Facebook page information relevant to the company that had not previously been reported. The SEC has since reported that companies may release information on social media, so long as investors are made aware the announcement is coming. So what does this mean to investors? Social media is allowing companies to connect with customers in whole new fashion. One of the ways in which they are using social media is through the use of push notifications. When a company you follow on Twitter or Facebook makes an announcement, push notifications can be enabled to allow a pop up on your phone notifying you of what has happened. This allows the user to no longer have to seek out information, but instead have information sent directly to their phone. With the constant clutter and filler bombarding users on the web, the ability to receive information direct from the company without external influence can be invaluable.

However, a reliance on social media still has its downfalls. As has been seen in recent months, social media accounts are still susceptible to hackers, who may post false information. Despite the risk, with over 1 billion users worldwide, the influence of a company’s like Facebook and Twitter are a resource that should not be ignored.

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