Major publicly traded companies had big news come their way today. The Securities and Exchange Commission has made a decision on public companies making significant announcements on social media sites. They are now able to make these announcements, provided they alert investors which sites they will be using.
What Does This Mean for Investors?
The issue first came about back in July when Netflix CEO Reed Hastings announced over Facebook that last June for the first time, subscribers together watched more than 1,000,000,000 (ONE BILLION) hours of video in that month. That is some significant news and is definitely worth noting as an investor as that sort of information could definitely affect the value of their stock. And so it did: Netflix stock jumped from $70.45 at the time of their Facebook announcement to $81.72 at the close of next trading day.
The SEC has definitely noted the influence and has chosen to start setting clear guidelines for businesses and their communication methods. We suggest following companies with which you have a vested interest to make sure you aren’t missing any influential news or opportunities.
What Does This Mean for Social Media Platforms?
The SEC has basically announced that companies can now use their preferred social media platform in the stead of dealing with a more formal website method. This means that larger governing bodies are beginning to recognize the technological shift towards more informal channels of communication. Social media is now becoming an indispensable tool for businesses to communicate with their employees, customers, and other stakeholders.
What Does This Mean for Businesses?
Businesses now have an array of options as to how to communicate with their fans and social media is becoming increasingly important on a variety of fronts. If you are a business owner and haven’t already invested in a clean and clear social media strategy, it is time to get moving. You are on social media whether you control it or not, so it is important to have a clear strategy on how to communicate with everyone who’s ready to listen. Need some help with a strategy? Give us a call.
