The Relationship Between Twitter Sentiment and Stock Performance: A Decision Tree Approach
Document Type
Conference Proceeding
Publication Date
1-1-2023
Abstract
Social media has become a communication tool, but also a valuable database for researchers and practitioners to gather information, share knowledge, as well as express opinions about stock performance. The sentiment embedded in social media content can be analyzed to predict stock performance. Although numerous past studies have attempted to predict stock price movement using social media sentiment, some emerging analytical tools, like existing lexicons, may require further testing and validation in a financial decision making context. In this study, we develop and test predictive models for stock price and trend forecasting. By using a large-scale sample of tweets collected from Twitter, related to four companies, Apple, Google, Microsoft, and Netflix, we propose a novel decision tree approach to stock performance prediction. Based on our findings, we then provide theoretical and practical implications and discuss the directions for future work.
Publication Title
Proceedings of the Annual Hawaii International Conference on System Sciences
First Page Number
4850
Last Page Number
4859
Recommended Citation
Chen, Rongjuan; Dong, Ruoxi; and Dai, Yichao, "The Relationship Between Twitter Sentiment and Stock Performance: A Decision Tree Approach" (2023). Kean Publications. 408.
https://digitalcommons.kean.edu/keanpublications/408