Twitter use among investment professionals seems to have come to a standstill, according to a 2015 global investor media survey. The study was conducted by the public relations firm Brunswick Group, and demonstrated the growing significance of digital and social media used by investment professionals to make investment decisions, according to the Wall Street Journal.
Investment professionals shying from Twitter
As per the study, about 77% of the experts claimed that information from social media played a significant role in their investment decisions. Moreover, the survey pointed out that about 28% of the investment professionals employed Twitter or some other micro-blogging site to “investigate an issue,” and around 13% used the platform to “launch the construction of an investment decision,” a decline of 1% from 2014.
Compared to the responses observed during the 2009-2012 period, this marks a considerable change in the opinion of investment professionals about Twitter. From 2009-2012, the social networking platform witnessed an increase in it being preferred among experts. A report in the Wall Street Journal in April noted that Twitter gradually replaced chat rooms in becoming a suitable platform for market obsessives to connect with each other. Furthermore, some notable online traders successfully converted ‘followers’ into customers using their trade ideas that were posted as tweets.
Jason Golz, a partner at Brunswick who carried out the survey, claimed that the study also found that most investment experts prefer to receive tweets through Bloomberg service, rather than visit Twitter to access relevant information. Golz opined that Bloomberg, which included Twitter on its platform last year, has been responsible for driving investors away from the social networking site.
Twitter becoming too noisy
Twitter’s growth and its problems have been a source of debate for a while. Now, this new survey pointing to the fading interest of investment professionals underlines another big problem for the social networking site. With the growing size of the website, the number of tweets has also gone up dramatically. This, in turn, made it hard to filter out the tweets you don’t want to waste time reading.
Chris Sacca, one of company’s earliest investors, noted 500 million tweets posted per day as one of the major reasons for the stagnant user growth of Twitter. “Hundreds of millions of those Tweets are noisy distractions,” Sacca noted.