Despite the US Securities and Exchange Commission’s (SEC) milestone decision to approve social media sites such as Facebook and Twitter for news distribution by public companies, most investors are not paying much heed.
According to a new survey by online broker/dealer TradeKing, the majority of investors continue to rely on Google searches/alerts along with traditional newspapers, TV/radio and corporate websites as their sources of news and information on companies they are trading.
The in-house survey of 215 independent investors was conducted April 26-May 3, 2013 by TradeKing Group, Inc., via email to 6,000+ independent investor clients, with an estimated 95 percent confidence level.
Asked where they go to follow company news, 61 percent of survey respondents said they use Google Search and Alerts, 59 percent said newspapers (offline and online), 46 percent said company websites, 32 percent said TV/radio, while social channels Twitter and Facebook received only seven and three percent of responses, respectively.
Additionally, investors were asked their opinion of the SEC’s decision to approve social media sites like Facebook and Twitter for corporate announcements and data releases by publicly traded companies.
Forty-four percent of respondents said they "don’t care/doesn't impact me," 24 percent characterized it "as a nuisance, creating more channels to check," 20 percent applauded the SEC’s effort to stay "on top of the social media trend," and 12 percent were "not sure."
After reporting strong "bullish" sentiment in the January 2013 TradeKing survey, investors have pulled back their outlook for the current quarter with the majority of survey respondents taking a "neutral" position on the market.
"Bullish" sentiment was down eight points from last quarter, reaching 37 percent. "Neutral" positions were up 6 points from last quarter to 43 percent, and "bearish" sentiment was up two points to 20 percent.
However, more than 60 percent of respondents said they believe the market will end up 5-10 percent by year’s end.
When asked what investors planned to do with any forthcoming tax refund, 31 percent reported they wouldn`t be getting a refund this year.
For those who are receiving refunds, most indicated they would be reinvesting the money in the market (21 percent), paying down personal debt (20 percent) or putting it into savings (16 percent).
For the second consecutive quarter, quarterly earnings took the top spot among potential trade triggers for the next three months, receiving 42 percent of responses.
It was followed by interest rate changes at 30 percent and US consumer spending at 29 percent.
TradeKing Group consists of companies that provide online brokerage services, social communities for investors, investor education and more.
Its subsidiary, TradeKing, is a nationally licensed online broker/dealer dedicated to empowering the independent, self- directed investor.
Google ranks #1 among investor sources for company news
