I think that the World Cup was such a big event this time around that with all the talk on Facebook and Twitter, definitely helped the stock market gain momentum. I think everyone was so excited about the games and the stock market definitely fed off of it and rode the ride.
The World Cup Absolutely increased the value of both Facebook and Twitter shares in the stock market. Multi-media was alive with headlines, film clips, and running scores. Comments on these sites were newsworthy and, even commented about by talk show hosts. The additional publicity created by the buzz on Facebook and Twitter made them even greater household words than they were previously. When a company becomes a synomym for information, their credibility on the stock market is increased. Both Facebook and Twitter gained a new growth in popularity during the world cup as people turned to those sites for up-to-date information and to "talk smack" with their friends and family about the game. Greater poplularity, becoming a common houselhold "item", and being proven as a source of needed information create a climate that causes people to want to jump on the popular bandwagon. The World Cup helped increase demand for both Facebook and Twitter and, as dominoes fall, the demand increased their stock market value.
The prevalence and success of this year's World Cup on other forms of social media should be a huge warning sign to investors of Facebook and Twitter. I believe the increase in the value of their shares has been unjustified since many users communicated about the World Cup using WatchESPN to watch for free as well as Snapchat.
Any relationship between the world cup and the stock market is temporary and fleeting. Whilst it may seem that immediate events have huge consequence upon it, this is not the case and figures demonstrate that fluctuations tend to happen over long periods of time. The stock market is about the long term and this is often ignored in face of small and slight changes.