Good question poised in the NIRI Group in LinkedIn… and it seems core to the never-ending social media and investor relations discussion.
“How do you deal with Motley Fool, Seeking Alpha, etc. writing misleading stories about your company?” The IRO posting this question was feeling adverse affects from the inaccuracies of an investor’s blog post on a stock portal.
Street perception stalwart Brian Rivel answered the question quite clearly:
“Over 55% of the institutional investment community uses Seeking Alpha, so you should be concerned about misinformation. I have recently gotten to know the CEO of Seeking Alpha (David Jackson) and I asked him about this today. He wrote: ‘Seeking Alpha’s goal is to help people invest better, so it’s not in our interest to publish inaccurate articles about stocks. For this reason, we encourage companies and their IROs to tell us immediately if we have published an article containing a material inaccuracy, and we quickly remove or correct inaccurate articles.’ “
All social media is created equal. However, some is more equal than others. Seeking Alpha is NOT the Yahoo Finance chat boards (“selling short – that CEO smells foul”) of 10 years ago. Many sites (including our partner StockTwits) are monitored and governed… as these site do not want to be known as pump-and-dump fairgrounds. IR departments can be strategic both in regard to which sites have true weight as well as being more selective to proactivly engage or re-actively correct misinformation.
OF COURSE, the next step for this specific IRO is to reach out and ENGAGE with the person who wrote the inaccurate article. Traditionally, IR would label this author “a-pain-in-the-ass.” In social media lingo, we call that person “an influencer.”
Here is what Seeking Alpha offers IROs. How Do The Most Successful IR And PR People Use Seeking Alpha?
Have a great day.