🚀 All Talk, No Stocks? What Reddit Sentiment *Doesn't* Predict
In the wake of the GameStop and AMC frenzies, financial firms and researchers have been racing to decode one question: Can social media sentiment predict stock prices? A new paper from researchers at Wrocław University of Science and Technology provides a sobering answer: not really. Despite employing advanced sentiment models—including a ChatGPT-annotated and emoji-savvy version of Financial-RoBERTa—the study found only weak and inconsistent relationships between sentiment and price movement for GME and AMC. ...