The Impact of Social Media and the Network Economy on the Stock Market

This paper rigorously examines the influence of social media and the network economy on stock market behavior. The research is structured into four principal sections: it begins by introducing the research backdrop, its significance, methodologies, structural organization, and thought process; it then proceeds to a literature review that scrutinizes the effects of social media sentiments and the network economy on the stock market's fluctuations. The subsequent section outlines the methodological framework and processes employed, which includes the formulation of hypotheses, the selection of sample data, and the construction of models and indicators. In the concluding part, empirical research is used to assess the relationship between social media activity indicators, such as video views and bullet comments, and stock market variations, such as return rates, trading volumes, and volatility. The study uncovers significant impacts of social media sentiments and the network economy on stock market parameters, like price alterations and market capitalization.This paper discusses the impact of social media on stock market trading, particularly its influence on daily return rates and volatility. It highlights how social media sentiments directly affect stock prices, confirmed through case studies and analyzed using linear regression models. The research also includes statistical tests to ensure the stability of the results. The study concludes with policy recommendations and emphasizes the growing importance of social media in shaping stock market dynamics, offering insights for investors to better understand and predict market trends.