Role of Social Media in Stock Market Investment Decisions
Year: 2026
Type: article
Abstract: ABSTRACT: This research investigates the profound shift in the stock market caused by the rise of social media platforms like Reddit, Twitter, and StockTwits. It outlines the transition from a market dominated by traditional, expert-led analysis to one driven by crowdsourced intelligence and real-time information sharing among retail investors. The study identifies how social media has lowered barriers to information, allowing retail investors to participate in market movements with unprecedented speed, while simultaneously amplifying psychological triggers like herd behavior and FOMO. Using a mixed-methods approach—combining quantitative sentiment analysis (Python/VADER) with a qualitative survey of investors—the research establishes a measurable correlation between online sentiment and stock price volatility. The findings emphasize an urgent need for updated regulatory frameworks to manage misinformation in a decentralized digital age.
Institution: Kalinga University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7204467965