Social Sentiment
In short
Aggregated sentiment from social media discussions about a stock
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.
Social sentiment captures crowd psychology from platforms like Twitter/X, Reddit (WallStreetBets), StockTwits. It often leads institutional sentiment during retail-driven moves. Extreme readings (very positive or negative) can be contrarian signals.
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.
- 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.
- 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.