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IMPACT OF META VERSE ANNOUNCEMENT DATE ON STOCK PRICES
Mr. Dhruv Yadav
Student
CHRIST (Deemed to be University) Delhi NCR
Email:dhruvyadavofficial7@gmail.com
Mr. Vansh Walia
Student
CHRIST (Deemed to be University) Delhi NCR
Email:vanshwalia2@gmail.com
Prof. Shubhanker Yadav
Asst Professor, CHRIST (Deemed to be University) Delhi NCR
Email:shubhanker.yadav@christuniversity.in
ABSTRACT:
Purpose-The developing metaverse, a virtual world poised to transform online interaction, has raised an important question: how does a company's participation influence its financial standing? This study focuses on the e-commerce behemoth Amazon and its prospective entry into the metaverse. Our major goal is to determine whether a statement by Amazon on their metaverse plans causes a significant impact in their stock price.
By examining past stock data with any potential metaverse announcement dates, we hope to determine whether Amazon's excitement about the metaverse translates into an actual financial benefit. This study dives deeper by examining the specifics of the announcement (assuming it occurs). Does the level of commitment and investment mentioned affect the stock price reaction?
Finally, this study aims to bridge the gap between the hoopla surrounding the metaverse and its real-world ramifications for corporations such as Amazon.
Approach: Event Definition: The event of interest is the particular day on which our selected companies makes a public declaration about entering the metaverse. This date will be critical to our analysis.
Event Window: We'll set a timetable around the announcement date. This window will most likely consist of two parts:
Estimation Window: The period preceding the announcement, we have selected 110 days, helps set a baseline for Amazon's stock price performance and eliminates the impact of unrelated market movements.
Event Window: This time period, we have selected as 10 days before and after following the announcement allows us to monitor any potential changes in stock price due to metaverse news.
Findings: Stock Price Change: The investigation may discover a statistically significant boost in companies stock price following a metaverse announcement. This suggests that investors reacted positively to the announcement, maybe seeing the metaverse as a new growth prospect.
No Change or Negative Change: Alternatively, the investigation may discover no substantial change, or even a decline in stock price following the announcement. This could suggest investor concern about companies capacity to capitalize on the metaverse, as well as a general market correction during the event window.
Impact of Announcement Specificity: The study may find that the level of depth and commitment conveyed in the announcement influences stock price movement. A more thorough and ambitious proposal may elicit a better positive response from investors.
Industry-Specific Effects: The research design might be expanded to compare company's stock price movement to those of other companies in different industries following metaverse announcements. This could reveal whether particular industries have a stronger stock market reaction because of their deeper relationship to the metaverse.
Limitation: For starters, the metaverse is a very new concept, so any announcement by worldwide companies may focus on future projects. This makes it difficult to estimate the long-term financial impact on the company's stock price. Furthermore, the specifics of the announcement itself (assuming it occurs) are critical. A vague announcement with few specifics may have a lower impact on the stock price than a well-defined plan with realistic investment figures. These constraints underscore the need for additional research as the metaverse and corporate participation in it evolve.
