Reddit Sentiment Analysis
The purpose of this project is to identify if there is a relationship between the Reddit sentiment on stocks and performance, and if many Reddit traders are grouping together and causing irrational stock market moves.
Abstract
It has never been easier for individual investors to get started trading stocks or options. Companies like Robinhood and Webull even offer zero commission trades, no account minimum size, and incentives like a free stock if a user creates an account. Recently, there has been a huge increase in the growth of users of these types of platforms. The combination of many people out of work because of the coronavirus and the US government stimulus package appears to have sparked this. This surge in new investors has sparked tons of activity on popular social media websites like Reddit. There users regularly post stock recommendations and trading strategies. It appears that many Reddit traders are grouping together and causing irrational stock market moves. Panic buying stocks for companies that just declared bankruptcy, betting against Warren Buffet, and ignoring the impact of the coronavirus on airlines and cruise ships are a few of the unusual market moves lately. The purpose of this project is to identify if there is a relationship between the Reddit sentiment on stocks and performance.