Social Computing

Paper Type

ERF

Paper Number

1252

Description

Bloomberg Businessweek is calling the $GME rally a bonkers manipulation of the stock market by small-time traders. This paper analyses more than 1.1 million Reddit comments and posts belonging to a few subreddits like r/wallstreetbets, r/stocks, r/stockmarkets, r/options about the ‘meme stocks’ on the New York stock exchange (NYSE) and Chicago Board of Options Exchange (CBOE) and evaluate their impact on stock price, volume, and volatility. We measure the Bullishness of given stocks using text mining and semantic analysis methods and utilize Wall Street Journal news stories as controls. The preliminary finding suggests strong evidence of predicting market volatility. We believe that the higher Reddit sentiment indicates higher stock volume, and the high frequency of posts (representing agreement) affects stock returns, traded volume, and volatility. We hope to show that social medial message boards, like Reddit, can be used as a reliable source to predict returns, volatility, and volume of the commodities traded on the stock market.

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Aug 9th, 12:00 AM

“Stonks to the Moon”: Evidence from Reddit posts and Corresponding Market Manipulation

Bloomberg Businessweek is calling the $GME rally a bonkers manipulation of the stock market by small-time traders. This paper analyses more than 1.1 million Reddit comments and posts belonging to a few subreddits like r/wallstreetbets, r/stocks, r/stockmarkets, r/options about the ‘meme stocks’ on the New York stock exchange (NYSE) and Chicago Board of Options Exchange (CBOE) and evaluate their impact on stock price, volume, and volatility. We measure the Bullishness of given stocks using text mining and semantic analysis methods and utilize Wall Street Journal news stories as controls. The preliminary finding suggests strong evidence of predicting market volatility. We believe that the higher Reddit sentiment indicates higher stock volume, and the high frequency of posts (representing agreement) affects stock returns, traded volume, and volatility. We hope to show that social medial message boards, like Reddit, can be used as a reliable source to predict returns, volatility, and volume of the commodities traded on the stock market.

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