Understanding Social Media’s Influence on the Economy
Social media’s influence on financial markets has connected the economy in unpredictable ways. Tweets from users with little to no expertise in finance have proven to have a ripple effect on the stock value of unrelated companies. When the Tesla stock drops, so does Meta’s — along with 200 other firms.
Using AI to analyze hundreds of millions of financial tweets, Sprott’s Mohamed Al Guindy has created a tool that investors, regulators and governments can use to help predict economic shocks, as well as predetermine the impact of intervention efforts and market manipulation.