Sentiment Score
In short
Composite sentiment metric combining multiple sources into a single signal
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.
A composite sentiment score aggregates signals from news (FinBERT-analyzed), social media, analyst tone, and other sources. Weighted by source reliability and recency. Used as an additional signal alongside fundamental and technical analysis.
Formula
Sentiment Score = Σ(weighted_source_scores) ÷ total_weightsThresholds
- < -0.5
- Extreme fear
- -0.5 to -0.1
- Negative
- -0.1 to 0.1
- Neutral
- 0.1 to 0.5
- Positive
- > 0.5
- Extreme optimism — contrarian caution
Related concepts
- News Sentiment — 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.
- 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.
- 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.
- Panic Alert — A panic alert fires when sentiment suddenly plunges — lots of negative news and selling pressure at once. Sometimes this is justified (real bad news). Other times it's an overreaction and a buying opportunity for the brave.