The Xiaomi Redmi Projector 4 Pro has been launched in China. It arrives around a year after the company released the Redmi Projector 3 Pro in this market. The latest model has a similar rectangular design, but features several upgrades.
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The Xiaomi Redmi Projector 4 Pro has been launched in China. It arrives around a year after the company released the Redmi Projector 3 Pro in this market. The latest model has a similar rectangular design, but features several upgrades.
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GAZA, Oct. 21 (Xinhua) — Gaza’s health authorities said Tuesday that they received the bodies of 15 Palestinians from Israel via the International Committee of the Red Cross (ICRC), bringing the total received since the ceasefire to 165.
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LAWRENCE — According to new research, social media may be a surprisingly reliable source for stock tips … if you know where to look.
“We find that when investors discuss analyst revisions on Twitter, it helps the market better understand and more quickly impound the information in the analyst report,” said Eric Weisbrod, associate professor of accounting at the University of Kansas.
His article titled “Social Media Discussion of Sell-Side Analyst Research: Evidence from Twitter” examines sell-side analysts’ stock recommendation revisions on Twitter, observing increased levels of price discovery during intraday windows with more revision-related tweets. This is especially notable for tweets with more user engagement and those posted by more influential authors.
Weisbrod’s work is forthcoming in an issue of Review of Accounting Studies.
“Whether it’s on Twitter or WallStreetBets on Reddit or whichever platform, people will post about the profits they’ve been making … or sometimes, humorously, about their losses,” Weisbrod said.
“But for the individuals who are making money, other people see that on their social media feed, and since they would like to experience similar profits, they try to follow these individuals’ advice. It’s similar to any type of celebrity or influencer.”
Co-written by KU doctoral candidate Matt Peterson, Andrew Call of the University of Southern California and Mehmet Kara of the University of Georgia, the research finds that platforms such as Twitter have emerged in this space due to the barriers retail investors face in accessing analysts’ stock recommendation revisions in a timely fashion.
“The common metaphor for Twitter is it’s the digital town square. We find that’s true with respect to this piece of information. When an analyst changes their recommendation, the revision used to be very proprietary to only the clients of the brokerage where the analysts work. But the more times information is discussed in the town square, the more that all investors can incorporate the news,” said Weisbrod, who notes the data for the article was culled prior to July 2023, when Elon Musk took over Twitter and changed its name to X.
One key question is why people make any financial decisions based on social media discussions.
“We’re putting one more data point in this debate that there’s good and bad information on social media, and I think that’s the challenge we all face these days of trying to identify what’s credible and what’s not,” Weisbrod said.
His team found several tests to determine if the information is reliably helpful for investors.
“For example, if there’s a link to an underlying source document that can show this was an analyst report — not just a random bot recommending a stock — that makes it more credible. Or if it’s from a verified account. And since our data is from the original Twitter period, to be verified you actually had to submit documentation. It wasn’t just ‘pay for verification’ like it is now. So if you were a verified public figure and tweeted about an analyst recommendation, then your tweets were more credible,” he said.
The impetus for this story stemmed from a presentation Weisbrod and Peterson attended concerning how viral tweets about earnings were bad for investors.
“We both had been thinking, ‘I wonder if people discuss analyst reports on Twitter? And is that good or bad?’ So the two of us started talking, and it evolved from there,” Weisbrod said.
Since analyst research is typically proprietary, the researchers were unsure how much Twitter discussion they would find. Yet they were able to analyze 50,286 recommendation revisions announced from 2013 to 2020. They observed at least one revision-related tweet during the two trading-day announcement window for 90.1% of all these revisions.
“Brokerages don’t really want their analysts’ research getting out because they want it to be more valuable to their own clients,” he said. “But we didn’t know that the leaks or discussion of these things would be quite so prevalent.”
Weisbrod previously served as an academic fellow in the Office of the Chief Accountant at the U.S. Securities and Exchange Commission in Washington, D.C. The Dallas native came to KU in 2020, where his research focuses on financial data providers and financial analysts.
“There’s a lot of information of questionable credibility on social media. Since we’re in the business school, we mostly think about investment-related social media. Even within that, some people are just pumping and dumping stocks, and it’s hard to know who to trust,” Weisbrod said.
“What we found is one way to capitalize on seeing people discussing a stock on social media. You can trust this more if it references a certified financial analyst, and then maybe this person has actually done their homework instead of just trying to scam you into buying a stock.”
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