Investor sentiment and stock returns: Wisdom of crowds or power of words? Evidence from Seeking Alpha and Wall Street Journal

Lachana, I. and Schröder, D. 2025. Investor sentiment and stock returns: Wisdom of crowds or power of words? Evidence from Seeking Alpha and Wall Street Journal. Journal of Financial Markets. 74 100970. https://doi.org/10.1016/j.finmar.2025.100970

TitleInvestor sentiment and stock returns: Wisdom of crowds or power of words? Evidence from Seeking Alpha and Wall Street Journal
TypeJournal article
AuthorsLachana, I. and Schröder, D.
Abstract

In light of changes in the media landscape from traditional print towards social media, in this study we compare the ability of investor sentiment measures obtained from various media sources to predict short-term market returns. We show that investor sentiment extracted from the social media platform Seeking Alpha is better in predicting market returns than investor sentiment obtained from the Wall Street Journal, a traditional print medium. Seeking Alpha is more suitable for the extraction of investor sentiment due to the richer language and timeliness of online media.

Article number100970
JournalJournal of Financial Markets
Journal citation74
ISSN1878-576X
1386-4181
Year2025
PublisherElsevier
Accepted author manuscript
License
CC BY 4.0
File Access Level
Open (open metadata and files)
Publisher's version
License
CC BY 4.0
File Access Level
Open (open metadata and files)
Digital Object Identifier (DOI)https://doi.org/10.1016/j.finmar.2025.100970
Publication dates
Published online03 Mar 2025
Published in printJun 2025

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