Last year, I decided to invest some money into cannabis stocks as some of my close friends were earning 5-10X their investment in a very short time. In fact, a few of my personal friends had earned over 100K+ in the matter of months.
Unfortunately, by the time I made my investment, stocks were at their peak and I eventually lost almost 90% of my initial investment hoping that it would recover. Stocks I had purchased at almost $4 are worth around 50 cents.
My irrational investing in the past could easily be attributed to the phenomena known as FOMO (“Fear of Missing Out”) which has led me to invest solely based on hype rather than making a more calculated decision.
A year later, I have taken a more practical approach in studying companies more closely and make calculated investments based on whether I believe the company has value.
So, where does web design come into all this?
Similar to how consumers are influenced by the appearance of a website while shopping online or deciding which company to hire for a particular service; this can be also be a factor for potential stock investors.
38 percent of visitors will stop engaging with a website if the content or layout is unattractive.
48 percent of people cited that a website’s design is the No. 1 factor in determining the credibility of a business.
In short, a company that does a poor job investing in their own marketing efforts, branding or online presence may likely not be perceived as credible to both consumers & investors. This oversight can potentially have a negative impact on the performance of their stock prices.
Royce Jakob, a 24 year old entrepreneur & investor from Hawaii has recently become one of my favorite podcasts on YouTube. His videos provide a common sense and an easy to understand approach to the stock market.
On several videos, Royce has mentioned that reviewing a companies website was part of his process in determining whether he would invest in a company.
In one of his videos, Royce reviews an EV company called Hyliion and makes the following statement:
I do like doing this [reviewing websites] prior to investigating companies, especially with such young invitational companies; take a look at how they are branding themselves, how they present themselves in their own words
Ironically, there is ‘stock’ in a companies website; if a company has a poorly designed then website it can ultimately sway investors like Royce.
If quality web design can impact conversions, perhaps we can assume that it can impact whether an investor may spend their next $1,000 or $1000,000+ into shares of a company.
If this is true, then investing in a quality website is one of the most important decisions that can impact a companies success not only in the stock market but the business entirely.