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Dissecting the Hype: A Study of WallStreetBets’ Sentiment and Network Correlation on Financial Markets

  • Kevin Wang,
  • Bill Wong,
  • Mohammad Ali Khoshkholghi,
  • Purav Shah,
  • Ranesh Naha,
  • Aniket Mahanti,
  • Jong-Kyou Kim

摘要

The emergence of online investment communities like WallStreetBets (WSB) on Reddit has revolutionised retail trading, characterised by collaborative, meme-infused market influence. This study analyses WSB’s ecosystem, examining how social sentiment, network structure, and user interactions impact stock volatility. Our analysis leverages sentiment analysis and network theory on millions of posts to understand community dynamics and their effectiveness in predicting stock prices. This research highlights the rising influence of social media in financial markets, especially with the recent surge in retail investors and their market impact.