Can Search Engines & Social Media Predict Startups on the Rise?

5 Mar

Search Engine Rankings could have even helped the Wolf of Wall Street in identifying companies on the rise, while he was on quaaludes. There are many financial investment tools that allow do it your self financial investors to set a budget and forget it. These financial tools use genetic algorithms based on trading rules to determine which stocks to automatically invest in for their clients. There are also do it your self investors that utilize Google’s Search Engine to discover articles, customer reviews, videos, and social media info about the companies they are interested in investing in. Some popular financial investment tools are Google Finance, Yahoo Finance, Investopedia, Morningstar, Finviz to name a few. There are tons of web based financial tools that investors utilize to influence or make their financial investing decisions, some investors such as one of the most successful investors, Warren Buffet, still reads newspapers to determine financial investments.

In fact, as recently as the 2016 presidential elections, social media was used to predict the next president of the United States, as documented in Hillary Clinton’s Twitter Chart of Doom.

While some stock investments are purely based on luck, there are investors out there that will only invest in certain stocks that they can research news and find statistics on, this is somewhat the traditional tedious way of investing. Unfortunately, not even the most thorough research and factual statistics can guarantee the strength or rise of a particular stock or industry. There are many investors that also mix and match various tools, such as using search engines, social media, and the stock market index to recommend investing in companies on the rise, or companies that have all of a sudden gained in market share.

Compiling digital data and social mentions in one tool clearly gives investors advantages as they’ll have an advantage over other investors. Say investor John Doe knows that Company 1, Company 2, Company 3, and so forth have top positions on Google search engine for a particular set of keyword phrases that gives those companies a lions share of visibility, website traffic, and online sales. Company 1, Company 2, Company 3 are also the main set of companies being talked about on social media, as well as the majority of customer interaction taking place on social media between customers and top companies. Search Engines such as Google.com take social mentions into consideration, thus giving companies a boost in their rankings because they are being mentioned on social media. What if investor John Doe notices a penny stock company, or even a startup has infiltrated the search engine result pages (SERP’s) of said top companies and that all of a sudden hundreds of thousands of social media users are now posting about the penny stock company on social media? Clearly the penny stock company is making leaps and bounds and is in a position to possible disrupt Company 1, Company 2, Company 3.

The investor has an understanding that the keywords that the penny stock company has infiltrated are competitive, high search volume, and high conversion rate keywords, so the investor may conclude that the penny stock company has increased online sales through its website search engine optimization. With the increase of social media interaction, negative or positive, the investor also understands that the penny stock company is now in the same conversation as the top companies within that industry. To the investor, these signals would make the penny stock company a worthwhile investment, he/she has discovered a company that is on the rise before other investors have. That same said company will now be taking market share from Company 1, Company 2, Company 3, making their stocks decline, perfect time to buy for the penny stock company!

Understanding where companies stand in search engine rankings for top keywords in its industry is a key factor for would be financial investors. It’s more difficult to predict or identify if a company is growing when the company initially starts out with a freemium model. Companies such as FaceBook, Instagram, Twitter, Linkedin, Google, mobile applications with in game purchases, to name a few all started out with a freemium model, and some continue to be free to this day. It’s hard to evaluate the worth of such company, but based on social media, and pure word of mouth and understanding that each of these companies eventually gained a huge user base would make even the most indecisive investor put their money down. So while social signals, digital/traditional marketing budgets, RSS Feeds with company/industry mentions, and search engine rankings present an interesting criteria in determining if a company is worth investing in, it is still not a sure fire method, but it is more than likely to work out.

In the example of the Pokemon craze when the Pokemon application was released, it was all over social media, and searches for Pokemon increased during that time as well, which was synonymous with Nintendo’s spike in stocks. Investors don’t have to wait for monthly, quarterly updates from CEO’s, be proactive and seek out the information you need through search engines, and social media, discover the companies footprints and visibility. Just take for instance, when searching for the keyword phrase “Search Engine” on Google’s own search engine, Google.com does not even show up on its own 1st SERP, and neither does Yahoo.com. Both Yahoo, and Google initially did not collect user information outside of their email services. It was difficult to really measure Google’s growth, or visualize how successful they would have become. Even some of the most experienced technology investors passed them over. Not even the best financial investing tools (investing calculators, portfolio planners, stock tracking tools), could have helped investors add Google to their portfolio, but one that compiles social mentions, marketing reach, RSS Feeds, and Search Engine Rankings could easily alert the most prudish financial investor that such a company was on the rise and could be taking market share from the top companies in its industry. Google now dominated the digital media space of its search engine competitors, the term “Google It” is widely used amongst broad circles.

Use search engines an social media to evaluate and predict startups companies on the rise through their social signals, marketing reach, buzz, and search engine rankings. Use these technology tools for your advantage in identifying early movers and shakers. The ability to predict what will happen next is key in the financial investment realm, so aside from a crystal ball, combining search engine rankings, social mentions, and buzz to form your own digital financial investment tool that compiles social mentions, marketing reach, RSS Feeds, and Search Engine Rankings could be the next best thing.

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