The Role of Reddit in the GameStop Short Squeeze
Adapting recent innovations in text analysis on microblogging platforms, we present evidence that the tone of discussions on the subredditt r/wallstreetbets (WSB) displayed significant predictive associations with intraday GameStop returns, volatility, bid-ask spreads as well as volumes. Most importantly, we show that the comment distribution on the subreddit obeyed a power law, and that it was a tiny minority of 462 most influential subredditors whose posts most impacted the GME stock returns and volatility.
The Role of Reddit in the GameStop Short Squeeze
Adapting recent innovations in text analysis on microblogging platforms, we present evidence that the tone of discussions on the subredditt r/wallstreetbets (WSB) displayed significant predictive associations with intraday GameStop returns, volatility, bid-ask spreads as well as volumes. Most importantly, we show that the comment distribution on the subreddit obeyed a power law, and that it was a tiny minority of 462 most influential subredditors whose posts most impacted the GME stock returns and volatility.