The Impact of Media Public Opinion Pressure on a Company’s Stock Price - the Case of Xiaomi su7 Deflagration as an Example

College of Economics and Management, South China Agricultural University, Guangzhou, China

^* Corresponding author: dangan@scau.edu.cn

Abstract

In this digital era with the rapid development of the Internet, authoritative voices represented by traditional news media reports are intertwined with massive user-generated content on social media platforms, jointly constructing a highly penetrating public opinion force. This force not only profoundly affects individuals’ cognition, decision-making and lifestyle, but also forms a powerful influence in the business field, exerting a non-negligible and significant impact on the shaping of enterprises’ brand images, the maintenance of market reputation, and the direction of business development. In this article, taking a case of Xiaomi SU7 spontaneous combustion that occurred on March 29, 2025, on the De Shang highway in Anhui Province as an example, case analysis and quantitative analysis methods are adopted to explore the impact of media public opinion pressure on the company’s stock price after the Xiaomi SU7 incident. This article finds that there is a significant negative correlation between the number of negative reports and Xiaomi’s stock price. Moreover, the scope of public opinion dissemination can affect the fluctuation amplitude of Xiaomi’s stock price. This case study provides relevant reference for investors in personal decision-making and for listed companies to deal with external emerging factors such as media public opinion.