1/16/2024 0 Comments Wsb ag stock![]() ![]() Some stock prices appear to have gone up and down as many individual day traders shared information about stocks through social media and bought or sold them in coordinated acts of collective behavior. It seems to have had its largest effects in early 2021 but persisted even after mid-year (Lyócsa et al., 2021). The US market subsequently experienced a shock related to herd behavior induced by a social media platform. Footnote 2Ī decline in stock markets worldwide occurred due to the COVID-19 pandemic and related economic uncertainty. This collapsed to less than US$69 by early February 2021, though the damage to short sellers was done (Angel, 2021). The price rise was driven by numerous individual investors who had purchased the stock, resulting in an all-time high intraday price for GME at US$483 on Janu(Allen et al., 2022). Footnote 1 The short-sellers’ problem was that GME shares exhibited a 1,700% price increase, reaching US$347.51 per share on Januup from US$17.25 several weeks earlier on January 4 ( CNBC, 2021). This led to a situation known as a short squeeze that affected professional investors. By coordinating their stock purchases through social media, they created a sharp rise on the New York Stock Exchange Euronext (NYSE Euronext) in GameStop (GME) stock’s price with no company fundamentals or newly released information to support higher valuation. Individual investors used to be viewed as a weak force who competed for influence with big players in the market, such as institutional investors and hedge funds (Krantz, 2021). The former group demonstrated collective behavior by exchanging stock trading-related information through social media (via Reddit’s r/WallStreetBets, or r/WSB for short), and invested heavily in specific stocks. We also encourage effort to create an in-depth understanding of the observed patterns and the linkages between them and the larger equity markets.Īt the beginning of 2021, an event occurred in the US stock market that has drawn attention from observers around the world. We provide a theoretical interpretation of what occurred and call for tighter monitoring of social news platforms. Our findings suggest that the valence and number of submissions influenced GME’s intraday transaction volumes and precursors for irrational trading behavior patterns to have emerged. The short squeeze occurred due to coordinated trading by individual investors, who discussed trading strategies on the platforms and drove collective social informedness-based trading behavior. We performed text-based sentiment analysis and compared the social informedness of posting users for GME trading on two social media platforms. We analyzed r/WallStreetBets subreddit posts related to GME’s trading patterns. Individual investors stimulated the stock market via Reddit social posts in the presence of institutional investors who bet against GME’s success as short sellers. We examine investor behavior on social media platforms related to the GameStop (GME) short squeeze in early 2021. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |