Presentation Title

Reddit and Stocks: How Reddit Sentiment Relates to Stock Movements

Presenter Information

Marcel JacquotFollow

Faculty Mentor

Arsenio Staer

Start Date

18-11-2017 2:15 PM

End Date

18-11-2017 3:15 PM

Location

BSC-Ursa Minor 134

Session

Poster 3

Type of Presentation

Poster

Subject Area

business_economics_public_administration

Abstract

Reddit and Stocks: How Reddit Sentiment Relates to Stock Movements

Author: Marcel M. Jacquot

Mentor: Arsenio Staer, California State University Fullerton

Before the rise of social media investment information was mainly shared by professionals, by word of mouth, or through publications. Now, investment information on companies can reach millions within a few hours, and with the that the possibility of influencing the investment decisions of everybody exposed. The objective of this paper is to study Reddit activity, and find if there is a relationship between higher post activity surrounding a publicly traded company and higher trading volume of said company stocks. This paper will fill the gap in the studies of information, market efficiency, and stock returns. I will be analyzing stocks most popular among Reddit users through the 2015 - 2016 year, seeing if there is higher trading volume when they are trending, and if their stock prices rise and fall based off sentiment values of the posts, while controlling for market and systematic factors. I contrast my findings by comparing them to the control group of the ten least popular stocks among Reddit users.

Keywords: Reddit, Social Media, Online Communities, Mood, News, Stock Market, Financial Markets, Investor Sentiment, Noise Trader, Trading Volume

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Nov 18th, 2:15 PM Nov 18th, 3:15 PM

Reddit and Stocks: How Reddit Sentiment Relates to Stock Movements

BSC-Ursa Minor 134

Reddit and Stocks: How Reddit Sentiment Relates to Stock Movements

Author: Marcel M. Jacquot

Mentor: Arsenio Staer, California State University Fullerton

Before the rise of social media investment information was mainly shared by professionals, by word of mouth, or through publications. Now, investment information on companies can reach millions within a few hours, and with the that the possibility of influencing the investment decisions of everybody exposed. The objective of this paper is to study Reddit activity, and find if there is a relationship between higher post activity surrounding a publicly traded company and higher trading volume of said company stocks. This paper will fill the gap in the studies of information, market efficiency, and stock returns. I will be analyzing stocks most popular among Reddit users through the 2015 - 2016 year, seeing if there is higher trading volume when they are trending, and if their stock prices rise and fall based off sentiment values of the posts, while controlling for market and systematic factors. I contrast my findings by comparing them to the control group of the ten least popular stocks among Reddit users.

Keywords: Reddit, Social Media, Online Communities, Mood, News, Stock Market, Financial Markets, Investor Sentiment, Noise Trader, Trading Volume