In today's world finance is becoming increasingly about technology and data science. In that same vein, this project aims to be a proof of concept for the analyzing of social media to get the public opinion of a Stock.
This idea stems from the efficient market hypothesis.
The efficient market hypothesis (EMH) is an investment theory that states it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. According to the EMH, stocks always trade at their fair value on stock exchanges,
From: https://www.investopedia.com/terms/e/efficientmarkethypothesis.asp#ixzz587bKvIHY
On interpretation of this idea is the concept of market inefficiencies. Because the value to the individual of a stock is not always the fair value due to human error. Human perception of a stock, and thus the price is what ultimately determines the price the stock trades at.
What inspired me to take on this project is this article
With a simple tweet, snapchat's stock fell dramatically. This suggests that social media can have a huge impact on the stock market. By analyzing these trends and monitoring public opinion of companies we can possibly build a predictive model to exploit market inefficiencies and anticipate changes in the market before they happen.
Because computers can pull data automatically from these sources and can analyze them in real-time, this could revolutionize the finance industry as a whole.