How does News and Social Media impact stocks?

News and social media can play a significant role in the investment world. For example, negative news such as bad earnings reports, economic and political uncertainty, and unfortunate occurrences (such as natural disasters) can cause people to sell stocks. In terms of social media, investors sometimes use platforms to monitor market sentiment based on growing interest in a particular area. It’s important to consider that social media often contains fake news and trends can quickly build based on this.

Please note that financial analyses and ratios should not be looked at in isolation when making investing decisions.