Social Media Analysis: The Relationship Between Private Investors and Stock Price

Understanding peoples’ opinions on social networks, such as Twitter or Reddit, has become easier with the assistance of analysis of users’ sentiments on these networks. In our model, social media reveals public opinions and expectations that potentially correlate with stock market price movements. Using natural language processing (NLP), this paper examines reasons for the correlation between public sentiments and stock price fluctuations in the United States. Further, we demonstrate these correlations and provide promising directions for future research.