A recent study suggests that there may be a link between Reddit posts and Tesla stock performance in the capital market. The impact of people chatting on Reddit on the value of the American automaker’s stock is an interesting discovery. Barclays has proven that most of the bets placed on Wall Street subscriptions relate to posts containing the two keywords TSLA and $ TSLA.
These well-known strategists have shown that there is a statistically significant relationship between the return of Tesla shares and the number of posts that will be published in Reddit one to two days ago. On the other hand, the Business Insider website has revealed that in the last five years, Tesla shares have experienced significant growth just after the days when more than 20 series of posts about this startup were published in Reddit.
Barclays analysts such as Ryan Priklav and Brian Johnson say: “We have rightly found that social media behaviors affect the stock value of companies like Tesla more than financial criteria. “The same fundamental valuation that, of course, we dare to talk about!”
“The most appropriate model we believe in is sending about 7 posts per day compared to the previous day, which could also help Tesla stock grow,” they added.
Despite these findings, there is still insufficient evidence to link the value of Tesla shares to Reddit-published mail. Analysts conclude: “The news and the situation in recent months has been so heated that we have few examples of the relationship between the shares of startups and posts in cyberspace. “However, we boldly say that past results can never accurately predict future performance.”