Study Finds Correlation Between Social Media Popularity and Share Price
A study conducted by Pace University doctoral student Arthur O’Connor and Famecount.com, a company that tracks social media renown, found a correlation between the social media popularity and stock price.
The research looked at three popular brands — Starbucks, Coca-Cola, and Nike — between April7, 2010 and February 2, 2011, analyzing activity across Facebook, Twitter and YouTube. The research found that social media popularity could be used as an indicator of stock price.
“By using social network popularity data on three major consumer brands, we were able to reliably predict their respective daily stock prices over a 10 month period,” O’Connor said in a statement.
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