The video in this report is only accessible to members

Key Takeaways

  • In our first foray into the world of unstructured data, we look into Reddit, in particular the WallStreetBets sub-reddit, to see if the data can be used to inform stock selection.
  • While the total number of mentions on WallStreetBets is large, mentions tend to concentrate among the most popular stocks.
  • Our Reddit Alert List includes stocks with an uptick in mentions on WallStreetBets combined with unusual trading activity. After being added to the list, stocks tend to underperform for holding periods out to 21 days.

Making Sense of the Reddit Revolution

There is the headline, and then there is the truth. One is a simple soundbite, while the other is a complicated and nuanced maze of thoughtful consideration. In January 2021, many in the news media proclaimed that retail investors had done the impossible and dethroned the Wall Street institutional elite. For a few weeks, it appeared that a genuine retail investor revolution was occurring on Wall Street. Retail investors identified institutional short positions in a company beloved to many millennials called GameStop. As retail investors started talking up the stock on a Reddit group called WallStreetBets, GameStop saw its price appreciate 2,265% in about ...

Unlock this article with a FREE 30-Day Trial!

No Credit Card Required! Limited time only!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 3/3

🎁 Unlock 2 extra articles by joining our Community!

You’ve reached your limit of 3 free monthly articles. Please enter your email to unlock 2 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free