In January of 2021, a major short squeeze of the stock of video game retailer GameStop and other securities took place[@RePEc]. A major driving force behind this event was the subreddit wallstreetbets, where users discussed the market situation around GameStop, focussing on the amount of short positions major hedge funds held for this stock and a “David versus Goliath”-situation unfolded. What followed was a large influx of users to the subreddit, who were convinced the stock had to go up and hedge funds had to pay for it.
Several interesting questions regarding the influence of these subreddits on the stock market emerge from this event. In this project, we present an analysis of communities on the finance related subreddits 'stocks' and 'wallstreetbets', the sentiment towards stocks on this communities and the correlation between those sentiment with the stock prices.
URL Website: https://dianaguzman.shinyapps.io/redditFinanceAnalysis/
URL Screencast: https://youtu.be/AtRUgU-btCs
URL Process notebook: https://rpubs.com/dianacgr/redditFinanceAnalysis