The act of forecasting the future value of publicly traded company shares using information and sentiment gleaned from the Reddit platform is an increasingly prevalent practice. For example, analysts might monitor discussions on subreddits like r/wallstreetbets to gauge collective opinion on a particular stock before making investment decisions.
This practice has gained traction due to Reddit’s large user base and its role as a forum for retail investors. The aggregation of opinions can potentially serve as a leading indicator of market movements. Historically, instances have occurred where coordinated action by Reddit users has demonstrably influenced stock prices, highlighting the potential benefits and risks associated with this form of prediction.