Journal of Finance and Marketing

All submissions of the EM system will be redirected to Online Manuscript Submission System. Authors are requested to submit articles directly to Online Manuscript Submission System of respective journal.
Reach Us +44-1518-081136

Case Report - Journal of Finance and Marketing (2025) Volume 9, Issue 3

The Influence of Social Media Marketing on Investor Sentiment

Jessica Martíen*

Institute of Biomedical Science, Universidad de Sevilla, Spain.

*Corresponding Author:
Jessica Martíen
Institute of Biomedical Science
Universidad de Sevilla, Spain.
E-mail: j.martn@bio-innova.es

Received: 04-Jun-2025, Manuscript No. AAJFM-25-166813; Editor assigned: 06-Jun-2025, PreQC No. AAJFM-25-166813(PQ); Reviewed: 19-Jun-2025, QC No AAJFM-25-166813; Revised: 23-Jun-2025, Manuscript No. AAJFM-25-166813(R); Published: 30-Jun-2025, DOI:10.35841/AAJFM-9.3.299

Citation: Martíen J. The influence of social media marketing on investor sentiment. J Fin Mark. 2025;9(3):299

Visit for more related articles at Journal of Finance and Marketing

Introduction

In today’s digitally connected world, social media has evolved from a platform for social interaction to a powerful tool that influences various spheres of life, including finance and investment. The growing prevalence of social media marketing has had a significant impact on how information is disseminated, how opinions are formed, and most importantly, how investor sentiment is shaped. With platforms like Twitter, Reddit, YouTube, LinkedIn, and TikTok becoming increasingly influential in the financial discourse, the intersection of social media and investing has created a dynamic ecosystem in which investor psychology, market trends, and brand reputation are deeply interconnected. Social media marketing, in this context, is not limited to brand promotions or advertisements—it also encompasses the strategic dissemination of financial content, opinion leadership, influencer collaboration, and real-time engagement with a broad audience [1].

Investor sentiment, defined as the overall attitude of investors toward a particular security or financial market, is largely driven by perception, emotion, and interpretation of information. Unlike traditional sources of financial data such as company reports, financial news channels, or stock analyst evaluations, social media provides a decentralized and immediate channel for information exchange. This democratization of information has allowed retail investors, institutional traders, and financial influencers to share opinions, predictions, and analyses that can sway public sentiment within minutes. A single tweet, meme, or viral video can result in dramatic market moves—something unthinkable a decade ago [2].

The GameStop stock surge of 2021 serves as a clear example of how social media marketing and group psychology can reshape market dynamics. A group of retail investors on Reddit’s r/WallStreetBets forum coordinated to buy shares and options in the struggling video game retailer, challenging hedge fund short positions. The story gained viral traction across Twitter, YouTube, and mainstream news, transforming a niche forum discussion into a global financial movement. The rapid dissemination of memes, trade screenshots, and rallying messages on social media amplified investor enthusiasm and drove unprecedented levels of participation. In this case, marketing wasn’t initiated by the company or any institutional actor but was instead fueled organically by users who believed in the cause and shared a narrative of collective empowerment. Investor sentiment was thus shaped more by emotion, social proof, and viral messaging than by financial fundamentals [3].

Social media marketing efforts by financial influencers, often referred to as “finfluencers,” have also had a significant role in directing investor sentiment. These individuals—ranging from certified financial advisors to self-taught traders—leverage their social media presence to provide market insights, recommend stocks, or offer personal financial advice. Their content, often packaged in engaging formats such as short videos, live Q&A sessions, and infographics, is easily digestible and accessible to novice investors. Finfluencers have built trust-based communities where followers value authenticity and relatability over technical expertise. As a result, their opinions can carry weight, driving investor decisions and altering market behavior. When these influencers endorse or criticize a company or investment vehicle, it often leads to immediate shifts in public sentiment, sometimes accompanied by real-time price volatility [4].

Companies and financial institutions have also recognized the potential of social media marketing in managing investor sentiment. Many use social media platforms to share earnings reports, product launches, strategic updates, and thought leadership content. These posts are not only informative but are also crafted to enhance brand image, build trust, and foster investor confidence. Real-time communication via platforms like Twitter or LinkedIn allows companies to engage directly with investors, clarify misunderstandings, and showcase transparency. For instance, CEOs who use their social media accounts to address investor concerns, announce updates, or express confidence in their company’s performance can positively influence shareholder sentiment. Elon Musk’s Twitter activity, for example, has often resulted in sharp movements in Tesla’s stock price, underlining the significant influence executive communication has on investor perceptions [5].

Sentiment analysis tools that mine social media data have become popular among traders and analysts seeking to predict market movements. These tools use natural language processing (NLP) algorithms to analyze tweets, posts, comments, and articles, extracting sentiment trends that indicate whether public opinion is bullish, bearish, or neutral. The data generated from these analyses can inform trading strategies, guide investment decisions, and provide early warnings about potential market shifts. For hedge funds and algorithmic traders, incorporating social media sentiment into predictive models is becoming increasingly common, recognizing the value of these decentralized voices in anticipating market reactions [6].

However, the impact of social media marketing on investor sentiment is not without challenges. The sheer volume of content, the lack of editorial oversight, and the tendency for misinformation to spread rapidly can result in confusion, panic, or irrational exuberance. Rumors, fake news, and coordinated manipulations can lead to volatility and potential financial losses for uninformed investors. In extreme cases, misleading posts and pump-and-dump schemes have led to regulatory scrutiny and legal actions. It becomes critical, therefore, for both investors and regulators to develop mechanisms that can differentiate between credible insights and manipulative tactics. Financial literacy and critical thinking are essential tools for navigating this noisy environment [7].

The emotional tone of social media conversations—whether optimistic, fearful, angry, or euphoric—can also influence collective investor psychology. Studies in behavioral finance suggest that emotions play a central role in investment decisions, often leading to biases such as herd behavior, loss aversion, and overconfidence. Social media, by amplifying these emotional cues, can trigger mass reactions that may not align with rational analysis. For example, a viral post suggesting a company’s potential bankruptcy—even if unfounded—can lead to a sell-off fueled by fear rather than fact. Similarly, trending hashtags or influencer endorsements can lead to FOMO (fear of missing out) buying frenzies, inflating asset prices unsustainably [8].

The global reach of social media has further magnified its impact on investor sentiment. Cross-border conversations allow investors in different countries to access real-time information and participate in market narratives that were once confined to local contexts. This globalization of sentiment can create synchronized market behaviors, increase liquidity, and promote inclusivity, but it can also result in faster contagion effects during periods of uncertainty. The interconnectedness of sentiment across platforms and geographies demands that companies and regulators adopt a more integrated approach to communication, surveillance, and investor engagement [9].

In response to these developments, regulatory bodies have begun to monitor social media activity more closely. Guidelines have been introduced for public companies, influencers, and financial marketers to ensure that social media content adheres to legal standards and ethical practices. For example, the U.S. Securities and Exchange Commission (SEC) has issued guidelines on social media disclosures and warned against the spread of unverified investment advice. Similarly, many countries require finfluencers to disclose their affiliations, sponsored content, and potential conflicts of interest. These regulations aim to protect investors from manipulation while preserving the positive aspects of democratized financial discourse [10].

Conclusion

In conclusion, the role of social media marketing in shaping investor sentiment is both profound and multifaceted. It has redefined how investors receive information, form opinions, and make decisions. While it offers unparalleled opportunities for engagement, education, and democratization of finance, it also introduces risks related to misinformation, emotional volatility, and regulatory challenges. The future of investor sentiment will increasingly depend on how effectively social media is used by companies, influencers, and investors themselves. A balanced approach—combining transparency, critical thinking, ethical marketing, and informed regulation—can harness the power of social media to build trust, enhance market efficiency, and foster a more inclusive financial ecosystem.

References

  1. Nath S, Villadsen J. Oxidative phosphorylation revisited. Biotechnol bioeng. 2015;112(3):429-37.

    2. Indexed at, Google Scholar, Cross Ref

  2. Senior AE. ATP synthesis by oxidative phosphorylation. Physiol Rev. 1988;68(1):177-231.

    3. Indexed at, Google Scholar, Cross Ref

  3. Lesnefsky EJ, Hoppel CL. Oxidative phosphorylation and aging. Ageing research reviews. 2006;5(4):402-33.

    4. Indexed at, Google Scholar, Cross Ref

  4. Slater EC. Oxidative phosphorylation. Aust J Exp Biol Med Sci. 1958;36(2).

    5. Google Scholar

  5. Mitchell P, Moyle J. Chemiosmotic hypothesis of oxidative phosphorylation. Nature. 1967;213(5072):137-9.

    6. Indexed at, Google Scholar, Cross Ref

  6. Papa S, Martino PL, Capitanio G, et al. The oxidative phosphorylation system in mammalian mitochondria. Mit-Med. 2012:3-7.

    7. Indexed at, Google Scholar, Cross Ref

  7. Saraste M. Oxidative phosphorylation at the fin de siecle. Science. 1999;283(5407):1488-93.

    8. Indexed at, Google Scholar, Cross Ref

  8. Ashton TM, McKenna WG, Kunz-Schughart LA, et al. Oxidative phosphorylation as an emerging target in cancer therapy. Clin Cancer Res. 2018;24(11):2482-90.

    9. Indexed at, Google Scholar, Cross Ref

  9. Stucki JW. The optimal efficiency and the economic degrees of coupling of oxidative phosphorylation. Eur J Biochem. 1980;109(1):269-83.

    10. Indexed at, Google Scholar, Cross Ref

  10. Racker E. Studies of factors involved in oxidative phosphorylation. Proceedings of the National Academy of Sciences. 1962;48(9):1659-63.

    11. Indexed at, Google Scholar, Cross Ref

Get the App