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The Academy of Financial Services 35th Annual Meeting

September 21–22, 2021


The Era of Retail Investors: Evidence from Reddit and Robinhood

Wednesday, September 22, 2021 at 12:00 PM–1:15 PM Eastern Time (US & Canada) add to calendar
Retail investors; Reddit; Robinhood
Short Description

The recent GameStop Stock Mania brought the wallstreetbets subreddit into spotlight. We measured retail investor attention through the intensity of certain stock tickers are mentioned in the wallstreetbets subreddit. We found that retail investor attention is highly associated with large positive movements in the previous time periods, especially the prior one or two days.However, reddit attention is also related to significant and positive returns for the next one- and two-days returns. Hypothetical portfolios weighted using investor attention and rebalanced on a monthly, weekly, and daily basis are all significantly outperforming the market benchmark from 2018. This outperformance is extreme since May 2020.

Lead & Corresponding Author

Yuanshan Cheng, Ph.D., Winthrop University
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Assistant Professor
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Additional Authors

Tao Guo, William Paterson University
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