Can ChatGPT assist in picking stocks?

Matthias Pelster and Joel Val

Finance Research Letters, 2024, vol. 59, issue C

Abstract: This paper studies whether ChatGPT-4 with access to the internet is able to provide valuable investment advice and evaluate financial information in a timely manner. Using a live experiment, we find a positive correlation between ChatGPT-4 ratings and future earnings announcements and stock returns. We find evidence that ChatGPT-4 adjusts ratings in response to earnings surprises and news events information in a timely manner. An investment strategy based on “attractiveness ratings” by ChatGPT-4 yields positive returns.

Keywords: Information processing; Artificial intelligence (AI); ChatGPT (search for similar items in EconPapers)
JEL-codes: G12 G14 G17 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323011583

DOI: 10.1016/j.frl.2023.104786

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