SOCIAL MEDIA, TRADING VOLUME, VOLATILITY AND STOCK PRICES

Abstract

This study investigates the impact of social media events on the behavior of six mega-cap technology stocks. Analyzing both positive and negative events, we find that negative events correlate with higher VIX Betas and trading volumes, while positive events are linked to higher stock prices. These effects vary across individual stocks, and unexpected associations emerge, such as increased trading volume for certain positive events. Our findings offer insights into the intricate interplay between social media events and market dynamics, highlighting the nuanced influences on volatility, trading volume, and stock prices for specific stocks. This study contributes to our understanding of the complex relationship between social media and financial markets, emphasizing the importance of considering stock-specific dynamics in investment strategies.

Keywords

• social media
• mega-cap
• technology stocks
• volatility
• trading volume