The Impact of Social Media Sentiment on NASDAQ Stock Prices

Bc. Rustam Bashirov

Master's thesis

Abstract:

This study aims to investigate the relationship between social media sentiment and NASDAQ stock prices. The objective is to determine whether there is a significant impact of social media sentiment on the NASDAQ index and individual stock prices. The study will use data from Twitter to extract sentiment scores related to NASDAQ-listed companies, and then perform a correlation analysis to examine the relationship between social media sentiment and stock prices. In addition, the study will also consider the impact of other macroeconomic variables such as interest rates, GDP, and inflation on stock prices. This will be done by incorporating these variables in a time series model to test for any significant effects on the NASDAQ index and individual stocks. The findings of this study will contribute to the literature on the relationship between social media sentiment and stock prices. It will also provide insights for investors on how to use social media sentiment as a tool for making investment decisions. The study has some limitations, including the availability and quality of data from social media and the macroeconomic variables. Nonetheless, the research methodology adopted in this study will ensure that the results are robust and reliable. Overall, this study is important for understanding the impact of social media sentiment on the stock market and for providing useful information for investors and policymakers.

Keywords

Sentiment analysis, Social media, Time series analysis, Stock prices, Python programming

Language used: English

Date on which the thesis was submitted / produced: 2. 4. 2023

Thesis defence

• Date of defence: 1. 6. 2023
• Supervisor: doc. Ing. Petr Procházka, MSc Ph.D.
• Reader: Vladimír Hönig, externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management