News Sentiment
In short
Aggregated sentiment score from recent news articles about a stock
News sentiment combines the emotional tone of recent news articles about a company. Lots of positive headlines = positive sentiment. A string of bad news = negative. It can signal upcoming price moves before they happen.
News sentiment aggregates sentiment scores from multiple sources (financial news, press releases, SEC filings) into a composite score. Research shows news sentiment predicts short-term price movements. Sudden sentiment shifts after earnings can precede significant price moves.
Thresholds
- < -0.3
- Strongly negative news flow
- -0.3 to -0.1
- Mildly negative
- -0.1 to 0.1
- Neutral
- 0.1 to 0.3
- Mildly positive
- > 0.3
- Strongly positive news flow
Related concepts
- FinBERT Sentiment — FinBERT is an AI model that reads financial news and rates it as positive, negative, or neutral. Unlike a general AI, it was specifically trained on earnings calls, analyst reports, and financial news — so it understands financial language.
- Social Sentiment — Social sentiment tracks what regular investors are saying on Twitter, Reddit, and forums. When retail traders go wild about a stock (think GameStop), social sentiment spikes. High social sentiment with price divergence can signal a squeeze or crash.
- Sentiment Score — The sentiment score blends news and social media signals into one number. Think of it as a thermometer for how the market 'feels' about a stock right now. Positive = optimistic; negative = pessimistic.