Internet Message Board Sentiments & Stock Returns: An Analysis of the MAGA Movement
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2025-07-04
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en
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In this current digital age investing in the stock market is increasingly more accessible to people across society, potentially leading to more activity on internet stock market message boards. I examine the impact of the content of over 69,000 messages, posted on the StockTwits platform, about 181 firms listed on the Russell 2000 index. The message sentiment and MAGA association are measured using a word matching model, to assign a single sentiment and MAGA association to each of the messages. I find that both negative message sentiments and positive MAGA associations immediately impact the daily stock returns of the Russell 2000 firms. While positive sentiments and negative MAGA associations possess a lagged effect on stock returns. These effects on stock returns are statistically significant but economically limited. Additionally, a heterogeneity analysis is carried out, indicating that the various industry sectors of the Russell 2000 firms influence the effects sentiments and MAGA associations have on stock returns. While times with exceptionally positive or negative message contents, do not significantly impact the effects on stock returns.
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Faculteit der Managementwetenschappen