Why social media and stocks are a really dangerous thing.
Recently, I wrote a post on Netflix & Viacom and mentioned why I thought Viacom was a good stock to purchase.
Why Viacom has one of the smartest strategies ever to grow Paramount+.
Revenue/profits are tied with Netflix.
Market cap is only 10-15% of Netflix.
Has growing streaming service.
I really believe in Viacom having a chance to go from a 26 billion dollar market cap to something like 100 billion before 2025.
A friend of mine messaged me and said he purchased $10,000 of Viacom stock.
Which well, that’s really cool.
I enjoy writing and making videos. When I see people read something I wrote and make a financial decision on it, it makes me happy. Everything that I write on for stocks is something I put a lot of time into researching, followed the numbers and I only write about it if I genuinely think it’ll work to the point my own money is there.
And I actually get hit up pretty often from people saying they bought something over what I wrote.
Dell
Planet Fitness
Facebook
Microsoft
Viacom
It’s genuinely cool to know that what people write on social media can lead to hundreds of thousands in purchases, but here’s the dark side.
Viacom has 605 million shares out there.
14 million shares are traded every 90 days on average.
155,000 shares a day on average.
$10,000 on the current share price of $40 a share would get someone 250 shares.
That one trade that happened largely due to my post, made up .1% of trades that day for Viacom.
That doesn’t seem like a lot, but I just posted that here, that probably per post reached 200-300 people.
Some people I know make about 20 videos a week on TikTok.
A particular friend has had 90 million views in the last 60 days/8.5 weeks.
170 videos
That puts their average at 529,000 viewers a video.
If they did a video on Viacom stock, it might be hard to sell for their audience, but I’m pretty confident done right, they can land 100,000 views.
If 1% of those viewers purchased $100 of Viacom each, that’d make up $100,000 and now we’re at 1% of Viacom volume a day.
Viacom is a stock with a 25-27 billion dollar market cap.
Penny stocks
Crypto
Even mid level companies.
There is going to be a use of artificial intelligence and social media to trigger issues for stocks, crypto, bonds and more which is going to be a high impact issue for the stock market.
There will be dark hedge funds setup, which exist to build bots that go on social media, get followings and post things to promote a random stock.
If a fund bought 1% of a lower market cap stock and got a network of 100,000 people on social media who like stocks to just see a tweet or post going “Buy WidgetX stock! It’s going to Mars!”, that’s it. The fund will make a massive return.
GameStop was a crazy thing.
AMC stock is a cult.
Crypto… A lot of bull being pumped there.
There’s going to be a moment coders begin to just make software that produces hundreds of bot accounts on social media and can get interest for investments artificially.
The moment that works well, the moment the stock market and every other investment gets way trickier and there’s not much that can be done to prevent it.
For the friends who’ve bought stocks like Viacom, Dell and other things I’ve written on, I think it’ll work and that was a real breakdown of what makes it viable.
But wait for the handle “Tothemoon69” to get 20,000 followers on Twitter and post every 30 minutes on why to buy Build a Bear stock.
It’s going to happen!