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Authors
Advisor(s)
Abstract(s)
With some news sources mentioning that young individual investors are massively manipulating the market, while others mention that there is nothing to worry about, it is hard to understand what is truly going on. One of the factors mentioned of this uncertainty is the communication and sharing of information via social media, like
Reddit and Twitter. Hence, the objective of this investigation is to analyse if there is a correlation between going trending on Twitter and certain stock market events like a trading volume peak and/or a daily price peak or drop. This investigation used the case study of the top 25 S&P500 companies to investigate whether this is true. The observation of this sample occurred in the period of September 2020 - September 2021 analysing the quantitative data available in this empirical field. Given the nature of the problem, the case study is markedly exploratory and descriptive, following a deductive approach, via a pre-existing theoretical model. It was found that worldwide in 46% of the cases there did exist a correlation between going trending on Twitter and a peak or drop on the stock daily stock prices. Only in 29% of the cases this was true for the trading volume. Yet for the USA, in 41% of the cases there was a correlation between going trending on Twitter and a daily price peak or drop, compared to 32% in case of the trading volume. As this is a recent and complex phenomenon, where knowledge is scarce, the present work also discusses the practical implications of the conclusions, offering clues for future investigations.
Description
Master’s degree in Management Control and Performance Evaluation
Keywords
Stock market Twitter Market manipulation Trending Case study
Citation
Imanse, J. I. (2022) How does the status “trending” attributed by Twitter to a corporation influence trading of its stock? The case study of the top 25 companies in the S&P500 Index. (Dissertação de mestrado não publicada). Instituto Politécnico de Lisboa, Instituto Superior de Contabilidade e Administração de Lisboa. Disponível em http://hdl.handle.net/10400.21/15438