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Two years after the infamous short squeeze on GameStop, retail investors are still a force to be reckoned with, according to JPMorgan.
The multinational investment bank’s newest data shows investors now account for 23% of total trading volume. That’s up one point from the frenzy of meme stock trading during the height of the pandemic.
These impressive numbers indicate retail investors are a growing presence within the capital markets space with a longevity far surpassing the typical viral meme’s shelf life. More still, research shows their online behavior has started to impact the way institutional investors approach their online research — which spells change for your team’s outreach efforts.
The Latest Digital IR Tools Refine Outreach
Tracking online behavior is at the heart of your IR strategy, according to the industry experts at Q4. That’s why the latest investor relations analytics from Q4 uses AI to clean, synthesize, analyze, and visualize data harvested from your vast IR platform. It automates these complicated and tedious tasks, so you can focus on what really matters: communication.
Well-timed outreach has always been a cornerstone of stellar IR strategies; however, it looks different today. The impact of retail investors means institutional investors are looking beyond your IR website to make investment decisions. They’re tapping into multiple digital channels for research and evaluation.
Investors Gather Intelligence from Various Sources
Your IR website remained the most trusted source of information about your value proposition in the latest Digital Investor Survey completed by the Brunswick Group.
However, IR sites are no longer the only source of information. The majority of investors (94%) analyze digital and social media data as part of their equity research. YouTube, LinkedIn, Facebook, Instagram, and even Twitter (despite its recent rocky reputation since Musk’s takeover) rank highly.
The Brunswick Group shows a growing overlap in online behavior between retail and institutional investors, with institutional investors using platforms traditionally associated with meme stocks. More than half (58%) of investors have made investment decisions based on information they’ve found on Reddit. Of those that used the social media site, 46% plan to rely on it more in the future.
How to Maximize Your IR Communication
Since your IR site remains an important touchstone for investors, it’s crucial you create an engaging website that delivers value to your investors. It should answer all the questions they might have about your brand within a few clicks of your homepage.
It’s a self-serving approach. After all, the longer visitors stay on your site, the more IR intelligence you collect on your investors.
However, you cannot overlook the importance of your social media presence. Retail investors are taking a larger share of the markets at the same time their research habits have rubbed off on those on the buy side.
With a greater spotlight on your social media platforms, you need to take control of the IR narratives found on those accounts. You need to publish relevant content to grab their attention and redirect them back to your IR site.
Twitter, in particular, can be helpful with outreach. Nearly two-thirds of investors (64%) surveyed by the Brunswick Group follow the CEOs of the equities they cover on Twitter. Investors believe a connection to leadership here reflects favorably on your brand, which can help curate an authentic and trusted platform that advances your IR strategy.
Bottom Line:
As engagement spans more and more digital channels, it’s important you meet your shareholders on these platforms. Monitor and refine your social media presence while maintaining a strong IR website. These tips can help you remain relevant and improve outreach as retail trading affects the markets.
This content is a joint venture between our publication and our partner. We do not endorse any product or service in the article.
