News vs. Social Media: Sentiment Impact on Stock Performance of Big Tech Companies

Hyunsun Kim-Hahm (), Ahmed S. Abou-Zaid and Abidalrahman Mohd
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Hyunsun Kim-Hahm: School of Business, Eastern Illinois University, Charleston, IL 61920, USA
Ahmed S. Abou-Zaid: Department of Economics, Eastern Illinois University, Charleston, IL 61920, USA
Abidalrahman Mohd: Department of Mathematics and Computer Science, Eastern Illinois University, Charleston, IL 61920, USA

JRFM, 2025, vol. 18, issue 12, 1-26

Abstract: With the growing prominence of large technology firms and the shift in news dissemination driven by social media, scholars have increasingly examined how public discourse about these companies shapes financial markets. Focusing on Apple, Amazon, and Microsoft during the transitional period of January 2015–January 2020, this study evaluates attention and sentiment across traditional news media, social media, and web search in relation to stock market outcomes. We use relatively fine-grained weekly data to link media attention and sentiment to stock returns, volatility, and trading volume. To compare media sentiment across sources, we apply FinBERT-based sentiment analysis, drawing on advances in domain-specific language modeling tailored to financial texts. Results show that social media sentiment (Twitter), exerts a consistently positive and significant influence, while the effects of traditional news media (New York Times) and web search activity (Google Trends) are more irregular. The impact also varies across firms: Twitter sentiment is strongly related to trading volume and volatility for Amazon and Microsoft, but appears less influential for Apple, whose large trading base may dilute the effect. These findings offer a historical baseline for media–finance interactions and highlight how text analysis illuminates the pre-COVID era of big technology firms.

Keywords: investor sentiment; social media; news media; big tech; stock return; large language model (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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