Unpacking the TikTok Follower Effect on Stock Trading and Market Opportunities

In today’s digitally-driven market, social media platforms like TikTok can no longer be ignored by investors seeking an edge. TikTok’s thriving community is not just about the latest dance craze or viral challenge; it is becoming a beacon for market trends and consumer interests that can spill over into investment behaviors. Tracking TikTok followers, therefore, offers a unique lens through which to gauge company popularity and potential stock movements.

The TikTok Popularity Index

The growth in TikTok followers can reflect a company's brand resonance and consumer engagement, which are potential precursors to financial performance. For instance, JPMorgan European Growth & Income, with an 11% increase in followers last week, might signal growing investor and consumer interest, despite the stock dropping 1%. Similarly, Carrols Restaurant Group saw a 9% spike in followers, which could suggest an uptick in brand engagement that is yet to translate to the stock price, remaining unchanged in the same period.

Additionally, tech giant Alphabet Inc. also experienced a 9% rise in TikTok followers, indicating a sustained attraction to the brand, though their stock temporarily dipped by 4%. On the fashion front, Ralph Lauren Corporation enjoyed an 8% increase in their TikTok audience, maintaining a stable stock price over the same period, while automotive company Continental Aktiengesellschaft’s 7% follower increase may hint at market potential, despite a 13% stock price fall.

The Flip Side: A Decline on TikTok

Conversely, companies losing TikTok followers may face challenges. Toyota Motor Corporation saw follower numbers drop by 99.3%, perceiving a significant 7% stock price fall. Fashion e-tailer Boozt AB publ also saw a minor decrease in followers, alongside a slight dip in stock value. Vertu Motors experienced a 0.9% drop in TikTok presence, although their stock interestingly inched up by 1%.

Chemical corporation BASF SE observed a 0.4% decline in its TikTok followers, which correlated with a stock price decrease of 3% to 4%, highlighting how even minor shifts in social media dynamics can mirror market responses.

While the correlation between TikTok followers and stock performance is not always direct, the data suggests that a company’s social media presence should be part of a broader analytical toolkit for investors. This integration of alternative data can unveil trends and market sentiments, potentially granting investors a more comprehensive understanding of where to allocate their resources effectively.

Top Growing Public companies on TikTok

Company TikTok Followers Price AI Score
JPMorgan European Growth & Income JPMorgan European Growth & Income
JEGI.L
132,900
10.8%
£101
1%
6
Carrols Restaurant Group Carrols Restaurant Group
TAST
1,200,000
9.1%
$9.54
0%
6
Alphabet Inc. Alphabet Inc.
ABEC.F
2,400,000
9.1%
€136.96
4.2%
6
Ralph Lauren Corporation Ralph Lauren Corporation
0KTS.L
896,300
8.1%
$171.36
0.4%
8
Continental Aktiengesellschaft Continental Aktiengesellschaft
CON.DE
86,700
7.3%
€52.6
13.2%
3

Bottom Growing Public companies on TikTok

Company TikTok Followers Price AI Score
Toyota Motor Corporation Toyota Motor Corporation
TYT.L
7,135
99.3%
¥2500
6.5%
5
Boozt AB (publ) Boozt AB (publ)
0RPY.L
10,300
1%
SEK100.9
1.4%
5
Vertu Motors Vertu Motors
VTU.L
11,200
0.9%
£69.5
1.5%
5
BASF SE BASF SE
BAS.F
6,422
0.4%
€42.4
2.8%
5
BASF SE BASF SE
BAS.DE
6,418
0.4%
€42.77
4.3%
5

The toplists are ordered by change in percentage of the company's TikTok followers over the last week. Only companies with more than 10,000 followers are included.