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Wall Street Journal says Product News can Counter Bad Buzz

November 29, 2011
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The Journal wrote last week about the effects (both good and bad) that social media reviews and other forms of online chatter can have on a company’s stock price.

Online reviews can… have an impact on the stock price of the companies offering those products, lowering average returns by nearly 0.1% in as little as three days, according to a new study…

In what should be good news for stock pickers that have a social media analytics bent, the data can apparently predict a stock’s performance:

Both positive and negative user-generated chatter seemed to predict market returns a few days ahead of time, the study found.

In what shoulld be good news for tech PR and marketing, the article concludes that issuing a press release can help:

Managers can take steps to combat negative reviews. New product announcements can increase positive buzz about digital products, such as cellphones and computers

It is an interesting time for buzz about social media buzz; Judy Gombita, a friend and co-contributor at Neal Schaffer’s Windmill Networking blog (yes, I just signed on to blog there as well), wrote a great post yesterday about what social media buzz can mean for crisis management.  Judy also pointed me to a good article in the Telegraph about online chatter and blunders in social media marketing

 

 

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