Can You Use SEO Knowledge To Beat the Stock Market

By Hasnain Raza KhanThere has never been a greater demand for SEO than in the last pandemic years. Businesses of all types realized that they needed to accelerate the shift to digital as consumers increasingly went online.

With the increase in organic search, it makes sense logically to link SEO performance to stock price in the current digital age. As a result, SEO rankings can serve as an important indicator for evaluating a company’s performance and its stock valuation.

SEO key role in current digital ERA

 Expert SEOs are committed to building a solid foundation for a business website to create an optimal user experience and can be found easily through search engines. Search engines, such as Google, establish authority on the basis of various factors such as:

  • Natural links.
  • Positive user behavior.
  • Machine-learning signals.
  • Optimized on-page elements and content.

Like in real life, building trust and credibility takes time. One of the most significant aspects of SEO is that it gives businesses the opportunity to understand and communicate relevant information to customers at the right time.

SEO is also the best method for understanding consumer feedback. SEO helps businesses understand what customers want, from macro market trends to consumer intent, in fine detail. The intent and behavior of users can be easily observed from keywords and SEO data, whether it’s oral or written.

A better user experience also comes from good SEO. In the recent times, Marketers’ number one goal has become improving the user experience. Organic rankings and visibility are undoubtedly the highest priorities for everyone, but the importance of a good user experience cannot be neglected.

Customer knows exactly what they want. It will be a problem if they are unable to locate it. There will be a degradation of performance. So, good SEO helps faster and easier access to information in fewer clicks.

Hence, using the power of SEO to amplify a positive user experience can benefit a brand and its stock.

Read: SEO predictions for 2022 and how you should prepare for them

The Buying Cycle Is Influenced by SEO

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Image source: Envato

A vital part of businesses marketing strategy is using SEO tactics to send out messages about good deals, cutting-edge products and services, and the importance and trustworthiness of what is offered to customers. When done properly, it will undoubtedly also have a positive impact on the buying cycle.

It is important for brands to be visible where people are looking for them in order to establish meaningful connections. Local SEO helps your business appear more visible to potential customers and helps them find the information and products they need.

Keeping up with the ever-changing environment of the World Wide Web, where changes occur constantly, can be challenging. Staying on top of SEO means staying on top of the major changes for search.

It is always possible to improve the success of a brand by understanding the web environment, along with the tactics used by other brands in the same market, resulting in boosting the chances of its stock topping the charts.

Read: 7 Must-Have Elements to Improve Your SEO Strategy

SEO is a relatively Cost-Effective method. Yes, it does cost money. That is the case with all the good things, right?

However, when it comes to the bottom line, SEO is relatively inexpensive compared to other marketing methods. This should not be considered as a marketing expense. In fact, it is an investment in the business.

By implementing SEO, a sound strategy can be implemented for many years to come. SEO will increase the equity of the business over time. Having a good ranking and good placement on the search will elevate a business profile.

Important factors to consider

Businesses and brands are increasingly aware of the benefits of engaging SEO for their digital properties.

Google update can be a real pain, especially when Google isn’t forthcoming about what changed and what can be done, if the site is unfairly penalized. Especially, Google changes can remove millions of dollars from the valuation of the company. On May 22nd, Google rolled out Panda 4.0, causing Retail Me Not’s stock to drop 10%, resulting in a $170 million loss from their market cap in one day.

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Image source: Envato

On the same day, eBay suffered a setback, losing up to 80% of its rankings for long-tail keywords. However, luckily, their stock didn’t follow suit. This is probably because PayPal is the major factor determining eBay’s stock price.

Read: How to Fully Optimize SEO’s Digital Marketing

Finally,

It is true that SEO performance can play a major role to beat the stock market. But there is more to consider, which is why it’s hard to find any correlation. There are usually several factors at play at a given time that impact an equity.

In other words, there’s probably no benefit to investing in Uranium Stocks just because its trending. Though it may be a signal, it isn’t strong enough to make me throw my money away on some random Uranium companies. If SEO and stock prices were analyzed in more detail, noise from other factors would be reduced, and a stronger relationship could be found.

Author Bio:

Hasnain Raza Khan provides ghostwriting and copywriting services. His educational background in the technical field and business studies helps him in tackling topics ranging from career and business productivity to web development and digital marketing. He occasionally writes articles for  StocksTelegraph.

 


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