Social media discussions anticipates financial market volumes

Abstract

The role of social media platforms, where opinions form and are shared, in stock market movements is becoming increasingly important. Several past studies have demonstrated the predictive power of web-based information analysis on investor sentiment and opinion. This paper analyzes the present relationship between discussions on X (previously known as Twitter) and market movements. Additionally, we contribute to the existing body of knowledge by introducing novel approaches grounded in information theory. Through empirical analysis and advanced statistical techniques, our study sheds light on the continued influence of social media sentiment on stock price returns, providing valuable insights for investors and market analysts navigating the complexities of modern financial markets.