Potential of ChatGPT in predicting stock market trends based on Twitter Sentiment Analysis

Abstract:The rise of ChatGPT has brought a notable shift to the AI sector, with its exceptional conversational skills and deep grasp of language. Recognizing its value across different areas, our study investigates ChatGPT's capacity to predict stock market movements using only social media tweets and sentiment analysis. We aim to see if ChatGPT can tap into the vast sentiment data on platforms like Twitter to offer insightful predictions about stock trends. We focus on determining if a tweet has a positive, negative, or neutral effect on two big tech giants Microsoft and Google's stock value. Our findings highlight a positive link between ChatGPT's evaluations and the following days stock results for both tech companies. This research enriches our view on ChatGPT's adaptability and emphasizes the growing importance of AI in shaping financial market forecasts.

Statistical Finance (q-fin.ST); Artificial Intelligence (cs.AI); Computation and Language (cs.CL)

arXiv:2311.06273 [q-fin.ST]

(or arXiv:2311.06273v1 [q-fin.ST] for this version)

https://doi.org/10.48550/arXiv.2311.06273 Focus to learn more arXiv-issued DOI via DataCite

6th Int. Conf. on Advanced Research Methods and Analytics 2024

https://doi.org/10.4995/CARMA2024.2024.17467 Focus to learn more DOI(s) linking to related resources

arXivLabs is a framework that allows collaborators to develop and share new arXiv features directly on our website.

Both individuals and organizations that work with arXivLabs have embraced and accepted our values of openness, community, excellence, and user data privacy. arXiv is committed to these values and only works with partners that adhere to them.

Have an idea for a project that will add value for arXiv's community? Learn more about arXivLabs.