Analyzing Price Fluctuations in Reddit’s ‘Meme’ Stocks

Abstract

Reddit’s so called meme stocks have taken over the stock market over the course of the 2021 calendar year. The events that transpired surrounding these stocks have created phenomenon that did not exist in the past. Fueled by millions of people following the r/wallstreetbets subreddit, these highly volatile stocks have seen more than 1000% increases in just a several days solely due to viral internet popularity. High jumps in the prices of these stocks are rooted in social sentiment towards those companies rather than the company’s true economic value. The power of the ever evolving internet and the collection action of a large group of everyday retail investors sparked these large price fluctuations. This thesis takes a broad look at exactly how much of a connection r/wallstreetbets actually had to the movement in stock price and stock volume over the course of the meme stock craze and beyond.