Stocktwits has initiated a program to onboard SEBI-registered Research Analysts (RAs), offering them a compelling value proposition as it looks to provide accurate insights to its vast community of retail investors while mitigating the influence of so-called ‘finfluencers’.
“One of the largest opportunities that I see in the stock market currently, is the rise of SEBI-registered RAs. Today RAs have an opportunity to replace finfluencers, but honestly, the issue is that the RAs are not good at content creation, they are great as analysts, but their work typically does not become viral,” Shiv Sharma, India Head and President of International Business, Stocktwits, a financial and social media platform, told ETBFSI at the Singapore Fintech Festival recently.
The content created by RAs doesn’t do well with the social media algorithm, which is driven by a whole host of other characteristics, he said.
Stocktwits, based in New York, has gained prominence with over eight million users globally, most of whom are from the United States, where the platform has been growing for 14 years. Recently, Stocktwits expanded its focus to India, forming a dedicated team to build partnerships and create content for the Indian market. This move has paid off, with India now contributing about two million users to Stocktwits’ ecosystem initiatives.
How Stockwits onboards RAs
Once registered on the platform, Stocktwits supports RAs by driving traffic to their profiles, aiding in raising awareness. Notably, the platform awards a verified yellow badge, a distinction that cannot be purchased, to SEBI-registered RAs. To ensure continuous engagement, Stocktwits maintains a dedicated team of seven individuals responsible for keeping SEBI RAs updated on the platform.
“What we’re doing at Stocktwits is onboarding the SEBI-registered RAs and giving them a very clear value proposition. Once they sign up on our platform, we help push traffic to their profile pages and help them raise awareness. We also give them a verified yellow badge on Stocktwits, which one cannot buy. We have a seven people team, who go and make sure that the SEBI-registered RAs are always updated on the platform,” he said. Beyond Stocktwits, the company has established a robust ecosystem across various social media platforms such as YouTube and Instagram, boasting a significant following. The aim is to amplify the presence of SEBI-registered RAs and bridge the gap created by influencers in the broader financial information landscape.
Thousands of Finfluencers share tonnes of content related to finance on social media platforms. Often it is found that the finfluencers which offer tips to buy stocks or finance products don’t have any merit. In fact, thousands of investors have lost their money. The market regulator has already penalised many of the finfluencers, including Baap of Chart and others. Stocktwits believes that the only solution is to have registered entities and registered advisors to push authentic information.
Leveraging the ecosystem
Stocktwits has been working on various ideas to get more registered advisors on the platform.
“Outside of Stocktwits we have we also have a very significant ecosystem across YouTube and Instagram, where we have five-and-a-half lakh followers, plus a newsletter and Twitter Telegram, and what we do is raise awareness to what is happening on inside Stocktwits and help these guys have a more of a brand and personality,” he said.
The CEO further addressed concerns about the authenticity of information on the platform, acknowledging the possibility of inaccurate data being shared. In response, Stocktwits underscores its commitment to ensuring only SEBI-registered individuals contribute information.
“So we host them on Instagram Live videos where many people join and listen to them. And so this is an opportunity where I feel we can really help SEBI-registered RAs grow their presence, and help fill the gap that is now happening with influencers and on Telegram where a lot of bad actors are also there.”
