STONKS : Analyzing Financial Discussions on Reddit

Diving deep into the analysis of financial talks on Reddit that made the fluctuation in the stock prices.

The following document by Omkar Ajnadkar shows that the social media has become an important part of digital web life, the effect it has on financial decisions is also increasing. The social media conversations on websites like Twitter, Reddit and Facebook are having an ever-increasing effect on stock prices as well as the way in which companies make decisions. This has made it important to analyze this data to make accurate predictions of stock prices in future. In this paper, we try to analyze financial discussions among users of Reddit by extracting hidden patterns, themes and user characters to predict future actions and consequences on the market.

We explore techniques based on natural language processing to pass conversations through data pipeline along with extracting stock tickers, manual as well as automatic theme extraction and word clouds. We also discuss common text processing techniques which can also be applied to other problems involving text analysis along with correlation model focusing on sentiment analysis as a predictor of stock movement.

Omkar Ajnadkar is a MSCS student at The University of Texas at Dallas in Machine and Deep learning . He has worked in the domain of Data Science, Machine Learning and Full Stack Web Development in various startups. He also likes to research in the domain of Computer Vision and Natural Language Processing and have published papers.