The latest refresh in our mediaQuant metrics has shown a possible link between segment-specific media momentum indicators (i.e. liquid biopsies) and stock movement (i.e. Biocept), at least in specific brand and product sectors.
I noticed this possible connection when exploring the liquid biopsy topic, a science topic we’ve watching for some time which just this month had a run in the media based on a number of corporate announcements.
The basic idea is that an “announcement” doesn’t have an effect unless it quickly and decisively translates into the appropriate type of media coverage. It needs to create the necessary storyline cues that move the topic beyond trade coverage to reasonable mainstream coverage, and then ignite a good volume of social media fodder.
If all these requisite media segment ratings move up and the MACD momentum values show an increase, then an underlying price associated with the announcement shows an out-sized increase, even if the market has already factored in the possible effects of the announcement on the stock price.
Why could there be a connection? It appears that technical financial metrics are just part of the storyline. There is so much noise in some market sectors related to news, discussions and hype that storyline development in the right segments provides a kind of hubble-telescope view through the low-altitude meida noise that translates into a price/magnitude trigger.
Our measures are still kind of blunt, but the data is there to refine the approach to be more sensitive at the media channel and segment level, and to tailor the approach to match sector specific combinations to media segments.
Very exciting stuff.