“I just like the stock”: the role of Reddit sentiment in the GameStop share rally
“I just like the stock”: the role of Reddit sentiment in the GameStop share rally
This paper investigates the role played by the social media platform Reddit in the events around the GameStop (GME) share rally in early 2021. In particular, we analyze the impact of discussions on the r/WallStreetBets subreddit on the price dynamics of the American online retailer GameStop. We customize a sentiment analysis dictionary for Reddit platform users based on the Valence Aware Dictionary and Sentiment Reasoner (VADER) sentiment analysis package and perform textual analysis on 10.8 million comments. The analysis of the relationships between Reddit sentiments and 1-, 5-, 10-, and 30-min GameStop returns contribute to the growing body of literature on “meme stocks” and the impact of discussions on investment forums on intraday stock price movements.
GameStop, Reddit, Robinhood, herding, media sentiments, meme stocks, sentiment analysis, textual analysis
Long, Suwan (Chen)
d72ea7d0-5cf9-446d-b372-c1ce6cdb916f
Lucey, Brian
ea62416d-8886-4acd-b160-f653aea6c319
Xie, Ying
2c103194-e86d-49e9-a50c-b896758e15aa
Yarovaya, Larisa
2bd189e8-3bad-48b0-9d09-5d96a4132889
26 October 2022
Long, Suwan (Chen)
d72ea7d0-5cf9-446d-b372-c1ce6cdb916f
Lucey, Brian
ea62416d-8886-4acd-b160-f653aea6c319
Xie, Ying
2c103194-e86d-49e9-a50c-b896758e15aa
Yarovaya, Larisa
2bd189e8-3bad-48b0-9d09-5d96a4132889
Long, Suwan (Chen), Lucey, Brian, Xie, Ying and Yarovaya, Larisa
(2022)
“I just like the stock”: the role of Reddit sentiment in the GameStop share rally.
Financial Review.
(doi:10.1111/fire.12328).
Abstract
This paper investigates the role played by the social media platform Reddit in the events around the GameStop (GME) share rally in early 2021. In particular, we analyze the impact of discussions on the r/WallStreetBets subreddit on the price dynamics of the American online retailer GameStop. We customize a sentiment analysis dictionary for Reddit platform users based on the Valence Aware Dictionary and Sentiment Reasoner (VADER) sentiment analysis package and perform textual analysis on 10.8 million comments. The analysis of the relationships between Reddit sentiments and 1-, 5-, 10-, and 30-min GameStop returns contribute to the growing body of literature on “meme stocks” and the impact of discussions on investment forums on intraday stock price movements.
Text
"I Just Like the Stock": The Role of Reddit Sentiment in GameStop
- Accepted Manuscript
More information
Accepted/In Press date: 14 October 2022
e-pub ahead of print date: 26 October 2022
Published date: 26 October 2022
Additional Information:
Publisher Copyright:
© 2022 The Authors. The Financial Review published by Wiley Periodicals LLC on behalf of Eastern Finance Association.
Keywords:
GameStop, Reddit, Robinhood, herding, media sentiments, meme stocks, sentiment analysis, textual analysis
Identifiers
Local EPrints ID: 471991
URI: http://eprints.soton.ac.uk/id/eprint/471991
ISSN: 0732-8516
PURE UUID: 9cd8845f-f96c-4086-b254-c9f355d43faa
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Date deposited: 23 Nov 2022 17:44
Last modified: 17 Mar 2024 03:54
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Contributors
Author:
Suwan (Chen) Long
Author:
Brian Lucey
Author:
Ying Xie
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