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Does Twitter Impact Stock Prices?

By Jessica Malcolm

As everyone probably knows, on January 27, Apple released the iPad, but not everyone was following Twitter and stocks during Steve Jobs’ speech. Leading up to the hyped unveiling, Apple’s stock prices increased as consumers took to social media to discuss the possible products which could be unveiled. The most popular topic was the Apple tablet, which consumers were very enthusiastic about. Yet, once Jobs’ took the stage and announced exactly what everyone thought he would announce, Apple’s stock immediately fell 4% (for more information about the exact stock prices http://money.cnn.com/2010/01/27/technology/ipad_apple_stock/).

Similar to Stock prices, enthusiasm on Twitter seemed to die down. As more of the iPad’s features were exposed, consumers expressed their interest or disinterest in the product. Seemingly enough the Tweets were reflected in consumer’s enthusiasm and distain for the product (For an in-depth look at the Tweets during http://trendistic.com/ipad/_since-2010-01-27-14h-utc/_until-2010-01-27-22h-utc_). As consumer opinion changed from the iStink to the iFantastic stock prices rose. Is someone on Wall Street tracking Twitter and advising traders to buy or sell in regards to the sentiment on Twitter? Its possible, Twitter is a quick check of the consumer’s pulse and opinion’s about a product or service and can accurately gauge if consumers are likely to purchase a product based on a sentiment. As marketers, we can use information gleaned from Twitter to combat rumors and make sure that their concerns are met with marketing.

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