2025, Vol. 6, Special Issue 2
The impact of social media on stock prices: Analysing meme stocks and viral trends
Author(s): Priya Rao and Priyanka Kumari
Abstract:
This study investigates the impact of social media on stock market movements, specifically how sentiment and activity on platforms such as Twitter, Reddit, and financial forums influence stock prices and trading volumes. Understanding social media’s function in financial markets is critical, given its rising ubiquity as a source of information and a forum for investor discussion. The findings show a strong link between social media mood and stock market movements, with specific viral messages and high-activity periods on social media platforms having a considerable impact on stock prices and trading volumes. The importance of social media in financial markets is increasingly highlighted by this research. It suggests that investors and market analysts should incorporate social media activity into their decision-making processes.
The study adds to the literature by presenting empirical evidence on the impact of social media on stock market behavior and providing a methodological framework for future explorations in this field. It also emphasizes the necessity for regulatory bodies to oversee social media’s influence on financial markets to ensure market integrity and safeguard investors.
In today’s technology-driven society, the role and influence of social media are significantly varied across different sectors worldwide. One area affected by social media is the stock markets in both India and globally. The impact of social media can be analyzed by the number of individuals using these platforms and their interest in the stock market. The rise in internet usage has led to a surge in the popularity of social media. Social media serves as a crucial channel that connects people across India and the entire globe. Nowadays, the geographical borders of a nation do not confine the stock market and its investors. We can now view the entire world as both a market and a stock market. The global population makes this possible due to advancements in technology and its widespread adoption.
DOI: 10.22271/27084515.2025.v6.i2Sa.620
Pages: 01-05 | Views: 165 | Downloads: 66
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