Influence of Twitter social network graph topologies on traditional and meme stocks during the 2021 GameStop short squeeze
Abstract In early 2021, groups of Reddit and Twitter users collaborated to raise the price of GameStop stock from $20 to $400 in a matter of days. The heavy influence of social media activity on the rise of GameStop prices can be contrasted with the muted social media influence on other, more tradit...
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| Format: | Article |
| Language: | English |
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Nature Portfolio
2025-06-01
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| Series: | npj Complexity |
| Online Access: | https://doi.org/10.1038/s44260-025-00042-2 |
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| author | Daniel Verdear Neil F. Johnson Stefan Wuchty |
| author_facet | Daniel Verdear Neil F. Johnson Stefan Wuchty |
| author_sort | Daniel Verdear |
| collection | DOAJ |
| description | Abstract In early 2021, groups of Reddit and Twitter users collaborated to raise the price of GameStop stock from $20 to $400 in a matter of days. The heavy influence of social media activity on the rise of GameStop prices can be contrasted with the muted social media influence on other, more traditional stocks. While traditional stocks are modeled quite successfully by current methods, such methods break down when used to model these so-called meme stocks. Our project analyzes the graph topology of retweet graphs built from GameStop-related tweets and other meme stocks to find that the clustering coefficient and network diameter of a retweet graph can be used to decrease the mean absolute error of meme stock trading volume predictions by as much as 46% over the control group during the first 70 trading days of 2021. |
| format | Article |
| id | doaj-art-4ba1d139f6434e36b509a4d8a249e75f |
| institution | OA Journals |
| issn | 2731-8753 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Nature Portfolio |
| record_format | Article |
| series | npj Complexity |
| spelling | doaj-art-4ba1d139f6434e36b509a4d8a249e75f2025-08-20T02:31:03ZengNature Portfolionpj Complexity2731-87532025-06-01211810.1038/s44260-025-00042-2Influence of Twitter social network graph topologies on traditional and meme stocks during the 2021 GameStop short squeezeDaniel Verdear0Neil F. Johnson1Stefan Wuchty2Department of Computer Science, University of MiamiPhysics Department, George Washington UniversityDepartment of Computer Science, University of MiamiAbstract In early 2021, groups of Reddit and Twitter users collaborated to raise the price of GameStop stock from $20 to $400 in a matter of days. The heavy influence of social media activity on the rise of GameStop prices can be contrasted with the muted social media influence on other, more traditional stocks. While traditional stocks are modeled quite successfully by current methods, such methods break down when used to model these so-called meme stocks. Our project analyzes the graph topology of retweet graphs built from GameStop-related tweets and other meme stocks to find that the clustering coefficient and network diameter of a retweet graph can be used to decrease the mean absolute error of meme stock trading volume predictions by as much as 46% over the control group during the first 70 trading days of 2021.https://doi.org/10.1038/s44260-025-00042-2 |
| spellingShingle | Daniel Verdear Neil F. Johnson Stefan Wuchty Influence of Twitter social network graph topologies on traditional and meme stocks during the 2021 GameStop short squeeze npj Complexity |
| title | Influence of Twitter social network graph topologies on traditional and meme stocks during the 2021 GameStop short squeeze |
| title_full | Influence of Twitter social network graph topologies on traditional and meme stocks during the 2021 GameStop short squeeze |
| title_fullStr | Influence of Twitter social network graph topologies on traditional and meme stocks during the 2021 GameStop short squeeze |
| title_full_unstemmed | Influence of Twitter social network graph topologies on traditional and meme stocks during the 2021 GameStop short squeeze |
| title_short | Influence of Twitter social network graph topologies on traditional and meme stocks during the 2021 GameStop short squeeze |
| title_sort | influence of twitter social network graph topologies on traditional and meme stocks during the 2021 gamestop short squeeze |
| url | https://doi.org/10.1038/s44260-025-00042-2 |
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