As we told you – the SEC has decided that companies can make their financial announcements through social media channels. This is a major step forward in investor relations and broadens the use of social media beyond sales and marketing to core communications. It also puts CEOs firmly on to Twitter and Facebook in the longer term.
So – what’s the reaction been since last week’s SEC bombshell? Well, Motley Fool noted that the Facebook share price jumped 5% and interpreted that as the markets giving this development a big thumbs up. It also observed that Facebook users may soon have to get used to seeing more updates from companies than from their own friends. Other commentators cautioned companies to make sure they adhere to the SEC guideline that investors must be told what social media tools are going to be used to ensure a level playing field. And the US law firm Porter Wright blogged that companies shouldn’t abandon press releases and conference calls to use social media channels exclusively.
One thing is certain – the genie is out of the bottle!