The Impact of Social Media Sentiment on Stock Price Changes

Research Article
Open access

The Impact of Social Media Sentiment on Stock Price Changes

Zhengyi Li 1*
  • 1 Department of Financial Management, Xiamen University of Technology, Xiamen, China    
  • *corresponding author 2310114214@stu.xmut.edu.cn
AEMPS Vol.170
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-019-1
ISBN (Online): 978-1-80590-020-7

Abstract

This study aims to explore the impact of social media sentiment on stock price fluctuations.A dataset from Kaggle was used, which contains tweets related to the 25 most followed stocks on Yahoo Finance from September 30, 2021 to September 30, 2022,along with stock market prices and trading volume data corresponding to those dates and stocks.X was selected as the primary subject of investigation in terms of social media,by analyzing the number of tweets during the corresponding period, the sentiments expressed, and the rise or fall of the associated company stocks mentioned in those tweets,to investigate whether a correlation exists between social media sentiment and stock price changes.The results show that there is a correlation between tweet sentiment scores and stock price movements,where positive sentiment scores are strongly correlated with stock price increases, and negative sentiment scores are strongly correlated with stock price decreases.However, the influence of sentiment on stock prices is limited; although there is a certain positive relationship, the fluctuations are large and sentiment alone is insufficient as an independent predictive indicator,and needs to be analyzed in conjunction with other key factors. These results suggest that the intensity of social media sentiment has a certain impact on stock price rises and falls.These findings provide a new perspective for understanding the factors behind stock price changes and offer important references for investor decision-making.

Keywords:

social media, sentiment analysis, stock price volatility, investor behavior

Li,Z. (2025). The Impact of Social Media Sentiment on Stock Price Changes. Advances in Economics, Management and Political Sciences,170,49-59.
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References

[1]. Lü, Y. (2018). An empirical study on the impact of online public opinion on stock market returns: From the perspective of investor sentiment. Finance and Accounting Communication, (4), 5.

[2]. Kong, X. (2022). Analysis of the positive feedback mechanism of herding behavior in the stock market caused by social media [Master’s thesis, Dongbei University of Finance and Economics].

[3]. Xu, T. (2018). A study on the impact of investor sentiment in social media on the stock market. Shanghai Management Science, 40(3), 67–74. https://doi.org/10.3969/j.issn.1005-9679.2018.03.012

[4]. Luo, W. (2018). Can investor sentiment predict stock market returns? A study based on online big data [Master’s thesis, Southwest University of Political Science and Law].

[5]. Zhang, S., & Others. (2015). Big data analysis of the impact of investor sentiment based on social media on stock market returns. China Market, (25), 4.

[6]. Zhang, P., & Song, L. (2012). A review of topic modeling methods for Weibo text based on LDA. Library and Information Service, 56(24), 7. [in Chinese]

[7]. Aljedaani, Wajdi, et al., (2022) Sentiment analysis on Twitter data integrating TextBlob and deep learning models: The case of US airline industry. Knowledge-Based Systems, 255, 109780.

[8]. Jia, J.H., Hao P., and Junming Su., (2023) Analysis of motivations, process, and implications of Elon Musk’s acquisition of twitter." BCP Business & Management, 47, 145-153.

[9]. Xu, W. (2012). A review of research on correlation coefficients. Journal of Guangdong University of Technology, 29(3), 12–17.

[10]. Coelho, J., D'almeida, D., Coyne, S., Gilkerson, N., Mills, K., & Madiraju, P., (2019) Social media and forecasting stock price change. In 2019 IEEE 43rd annual computer software and applications conference (COMPSAC) (Vol. 2, pp. 195-200). IEEE.

Cite this article

Li,Z. (2025). The Impact of Social Media Sentiment on Stock Price Changes. Advances in Economics, Management and Political Sciences,170,49-59.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 9th International Conference on Economic Management and Green Development

ISBN：978-1-80590-019-1(Print) / 978-1-80590-020-7(Online)
Editor：Florian Marcel Nuţă
Conference website: https://2025.icemgd.org/
Conference date: 26 September 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.170
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Lü, Y. (2018). An empirical study on the impact of online public opinion on stock market returns: From the perspective of investor sentiment. Finance and Accounting Communication, (4), 5.

[2]. Kong, X. (2022). Analysis of the positive feedback mechanism of herding behavior in the stock market caused by social media [Master’s thesis, Dongbei University of Finance and Economics].

[3]. Xu, T. (2018). A study on the impact of investor sentiment in social media on the stock market. Shanghai Management Science, 40(3), 67–74. https://doi.org/10.3969/j.issn.1005-9679.2018.03.012

[4]. Luo, W. (2018). Can investor sentiment predict stock market returns? A study based on online big data [Master’s thesis, Southwest University of Political Science and Law].

[5]. Zhang, S., & Others. (2015). Big data analysis of the impact of investor sentiment based on social media on stock market returns. China Market, (25), 4.

[6]. Zhang, P., & Song, L. (2012). A review of topic modeling methods for Weibo text based on LDA. Library and Information Service, 56(24), 7. [in Chinese]

[7]. Aljedaani, Wajdi, et al., (2022) Sentiment analysis on Twitter data integrating TextBlob and deep learning models: The case of US airline industry. Knowledge-Based Systems, 255, 109780.

[8]. Jia, J.H., Hao P., and Junming Su., (2023) Analysis of motivations, process, and implications of Elon Musk’s acquisition of twitter." BCP Business & Management, 47, 145-153.

[9]. Xu, W. (2012). A review of research on correlation coefficients. Journal of Guangdong University of Technology, 29(3), 12–17.

[10]. Coelho, J., D'almeida, D., Coyne, S., Gilkerson, N., Mills, K., & Madiraju, P., (2019) Social media and forecasting stock price change. In 2019 IEEE 43rd annual computer software and applications conference (COMPSAC) (Vol. 2, pp. 195-200). IEEE.

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