Potential of ChatGPT in predicting stock market trends based on Twitter Sentiment Analysis
Ummara Mumtaz, Summaya Mumtaz
q-fin.ST, cs.AI, cs.CL
Submitted: 2023-10-13
Updated: 2026-08-19
Comments: total 11 pages including references, 4 figures and one table
Journal ref: 6th Int. Conf. on Advanced Research Methods and Analytics 2024
DOI: 10.4995/CARMA2024.2024.17467
License: http://creativecommons.org/licenses/by/4.0/
The gist: The rise of ChatGPT has brought a notable shift to the AI sector, with its exceptional conversational skills and deep grasp of language.
Terminology
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.
Sources
- The impact and applications of ChatGPT: a systematic review of literature reviews
- Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models
- The Wall Street Neophyte: A Zero-Shot Analysis of ChatGPT Over MultiModal Stock Movement Prediction Challenges