Especially in times of the corona pandemic, innovative formats for obtaining information are becoming increasingly popular. These will play an increasingly important role in the future, especially for private investors.
Internet forums such as Reddit, which recently played a decisive role in meme stocks such as AMC and Windeln.de , are gaining in popularity, especially among newcomers to the stock exchange, who usually take advantage of the cheap offers from neo brokers such as Scalable or Trade Republic . A meme share describes a value whose price is not influenced by the company’s performance, but rather due to a collective hype via social media or internet forums such as Reddit. The result is usually very high volatility in the stock.
New digital audio formats are also becoming increasingly interesting and can serve as a source of information for investors – one could speak of “Audio 2.0” with this boom. In the past year, the podcast offer on Spotify & Co has been greatly expanded. According to the Bavarian State Center for New Media, around 95 percent of all 14- to 29-year-olds used online audio offers in 2020, which mainly include music streaming and podcasts, while the proportion of over 50-year-olds was over 50 percent.
New audio and video streaming formats
Music streaming services are the most popular point of contact for podcasts, but video platforms such as YouTube are also used for this purpose. Streaming providers are entering the podcast market to secure shares in the highly competitive market. The fact that long-term podcast deals with famous personalities are valued at up to 100 million dollars according to the “Wall Street Journal” is an indicator of a possible future development. Deals with investors or stock market personalities for podcast series by streaming providers could soon follow.
But not only music and audio streaming, but also live audio formats, where the aim is to be there as a listener during the broadcast, such as the Bundesliga live broadcast on Amazon Music as an audio format, are gaining in popularity . One of the more recent developments is the so-called “drop-in audio”, similar to live audio, but with the big difference that listeners can actively participate. The drop-in audio app “Clubhouse” was particularly popular in spring 2021.
The success of “Clubhouse” in Germany was due, among other things, to the very well chosen timing of the market launch. The format also creates a special atmosphere among the audience: the reports by Florian Toncar from the Wirecard investigation committee felt like a direct part of a conference call.
For stock market enthusiasts, however, no previously known live audio formats could prevail. This could also be because the investor should either have information available on demand or he would like to actively exchange information with other people, for example in the form of a discussion.
Platforms such as YouTube can also serve as a source of information for new investors on fundamental topics. There you can find, for example, Youtubers like “Finanztip”, who publish videos several times a week on topics such as “Do ETFs worry about the next stock market crash ?” publish.
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Specialist literature on mooring is still needed as a supplement
Instagram live streams are also gaining in importance, including those from Markus Koch, stock market moderator on Wall Street, who reports daily from New York. On Twitch, streamers like “Finanzfluss”, at the same time one of the largest German Youtubers in the field of finance, are gaining popularity. The largest social media platforms Twitter and Facebook are also responding to the demand for new types of audio formats: Twitter recently launched the new “Spaces” function, which is supposed to enable live conversations. Facebook is working on the introduction of the new “Hotline” web app.
Since the new, innovative formats often focus on a large target group, complex relationships are often not fully represented by a deliberately short, clear presentation method.
It is therefore extremely important that inexperienced and young investors in particular try to acquire a basic understanding of the stock market and investment products with the help of specialist magazines and literature in addition to innovative formats, because: without knowledge, nothing goes on the stock market.