Finance Monthly - June 2023

The results can also be visualised by sentiment based on positive, negative or neutral coding. As seen in the graph above, the software can show spikes in the conversation, which is a stark reminder of how quickly commentary can go viral. The next step is to investigate who is commenting: is it a competitor, a former employee with a grudge, a short seller, an environmental activist? Understanding the drivers of the conversation, and who is driving them can help investors refine their investment thesis and strategy. Understanding the executives As we all know, businesses are the people who run them. The social media aspect of due diligence gets you closer to understanding what makes the people of a particular company tick. It’s a window into what they believe, what they feel, and who and what is important to them. In addition to conducting topic queries on the target company’s management to learn what the public may be saying about them, it’s necessary to determine whether the individuals “The social media aspect of due diligence gets you closer to understanding what makes the people of a particular company tick.” Business & Economy Finance Monthly. 46

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