Communications in Humanities Research
- The Open Access Proceedings Series for Conferences
Communications in Humanities Research
Vol. 24, 03 January 2024
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Access | Article
How Reddit Sentiments Influenced Gamestop Stocks
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Abstract
This paper focuses on the language usage in the GameStop (GME) share rally in January 2021. Specifically, I analyze how comments in a leading post of Reddit’s r/wallstreetbets subreddit reflect the reddit user community’s sentiment and emotion with various linguistic expressions. I analyzed the topics of the comments using topic modeling with Latent Dirichlet allocation algorithm, which objectively identified representative topics in the comments. Results showed that there were six clusters of topics, including two of the topic clusters that represented words that were highly correlated with stock market behaviors, such as “buy” and “sell”, one cluster that suggested objective analyses of the stock market, and one cluster that presented complaining emotions. The findings indicate a direct correlation and impact between the sentiments of comments and the performance of the stock market.
Keywords
sentiment analysis, GameStop, social media
References
1. Ahmad, K., Han, J., Hutson, E., Kearney, C., & Liu, S. (2016). Media-expressed negative tone and firm-level stock returns. Journal of Corporate Finance, 37, 152-172.
2. Dong, H., & Gil-Bazo, J. (2020). Sentiment stocks. International Review of Financial Analysis, 72, 101573.
3. Hu, D., Jones, C. M., Zhang, V., & Zhang, X. (2021). The rise of reddit: How social media affects retail investors and short-sellers’ roles in price discovery. Available from SSRN: https://ssrn.com/abstract=3807655.
4. Long, S., Lucey, B., Xie, Y., & Yarovaya, L. (2022). “I Just Like the Stock”: The Role of Reddit Sentiment in the GameStop Share Rally. Financial Review.
5. Anand, A., & Pathak, J. (2022). The role of Reddit in the GameStop short squeeze. Economics Letters, 211, 110249.
6. Boe B. (2023). PRAW: The Python Reddit API Wrapper. https://github.com/praw-dev/praw/ [Online; accessed 2023-06-29].
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Interdisciplinary Humanities and Communication Studies
- ISBN (Print)
- 978-1-83558-251-0
- ISBN (Online)
- 978-1-83558-252-7
- Published Date
- 03 January 2024
- Series
- Communications in Humanities Research
- ISSN (Print)
- 2753-7064
- ISSN (Online)
- 2753-7072
- DOI
- 10.54254/2753-7064/24/20231162
- Copyright
- 03 January 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited