In the US, the SEC has allowed companies to file results on social media provided they announce which platform they will use. Now comes the backlash but what a weedy set of arguments are being trotted out to defend the old ways. The Luddites are whining that it’s fraught with dangers lurking round every corner – but most of their arguments (if one could dignify their words with such a term) don’t stand up to much scrutiny. So here we go – wrecking ball at the ready.
Financial results are not the main reason for Twitter’s existence – they’ll surely get lost in the hub-hub of online debate.
Dear oh dear. Is that the best you can do, Luddite? Twitter has zillions of streams of conversation and yet as we all know, you can isolate your areas of interest and if it’s politics – you can screen out cookery and winter sports very easily. If it’s business and you’re an investor, you can use well known tools to make sure your Twitter feed is all about the corporate world. The argument that most tweets are ignored doesn’t hold much water either – if you are an investor and Company X has announced its results will come out on Twitter, you will make sure to be online when it happens. Most tweets that are ignored are about what people did with their cats or commentary on the weather. Next!
Twitter is not a legitimate investment forum
Seriously, my blood nearly boiled when I read this – won’t say where I read this to spare the blogger concerned his/her blushes. Twitter is not a ‘legitimate’ anything forum by that argument. Twitter is Twitter. It’s whatever content is pored into it. This sounds like special pleading from investor websites worried that their users are migrating to social media. Well – boo hoo!
People spread misinformation on social media – they may even add their own comment to your announcement before retweeting
And of course, nobody ever spread misinformation on investor forums from the dotcom era to the present day. Investors have been spreading rumours and misinformation since stock exchanges were set up. Don’t shoot Twitter. Indeed, the speed of social media does allow for falsehoods to be spread faster but it also allows for them to be shot down with equal rapidity.
Isn’t it better to still use a commercial newswire?
Ask yourself – what are most people looking at these days (and I include journalists, politicians and CEOs)? Are they scanning the Press Association once every hour? No. Are they clicking on to Twitter like an addict seeking a fix? Yes. Case closed.
- Understanding the True Risks of Utilizing Social Media for Financial Disclosure (businesswire.com)
- Twitter Makes Business Friendly Changes (somemarketingcompany.wordpress.com)