The Impacts of Information on Stock Prices Assessed by Social Media Sentiment

This paper discusses why information on social media could reflect people's sentiment and how the sentiment further impacts stock prices. A synthesized theoretical model is introduced to answer why social media sentiment is able to impact stock prices, then experiments on stock prices and corresponding social media sentiment is conducted on two cases to verify the impacts. Based on the experiment results, statistical and rational analysis was put forward. This paper not only theoretically interpreted the phenomenons but also experimentally verified the correlationship. The conclusion manifests as social media sentiments is highly possible to have impacts on stock prices.