In its new risk monitor the European Securities and Markets Authority https://www.esma.europa.eu/ builds on data from Stockpulse. One of the key risk drivers they describe are “social media driven investments”.

Investors, especially less sophisticated ones with limited knowledge or resources, are at risk of receiving false or misleading information through social media. As finance-related postings expand, investors not verifying the reliability and quality of information may incur losses.

In the wake of all new developments in AI, the growing landscape of social media platforms, and the usage of new formats such as video or audio, it is now more important than ever to monitor social media closely, especially with a focus on financial markets.

You can read the full risk monitor here: https://www.esma.europa.eu/sites/default/files/2024-01/ESMA50-524821-3107_TRV_1-24_risk_monitor.pdf