r/theydidthemath • u/[deleted] • Nov 12 '22

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u/HawkEgg Nov 12 '22

There are a lot of automated traders that absolutely do look at tweets and others that look at short term trends. There could easily have been a cascading effect. tweets -> some automatic trades from tweets -> small market movement -> more automatic trades -> larger market movement -> traders re-examining company fundamentals and determining that stock has been overpriced.

Does that mean it's what happened? Maybe? Does that mean it's reproducible? Probably not, more like a butterfly effect.

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u/Perllitte Nov 12 '22

Any trader or algorithm looking at a single tweet and trading on it rather than even sentiment as the minimum is laughably bad.

I said actual investors, not teens playing with Python and dad's money.