Posts about Tesla Inc. are “nuanced” but “true”. on a popular social media forum and the stock product of electric car manufacturers, analysts at Barclays said in a note Tuesday.
“Big upticks” in Tesla TSLA,
citing WallStreetBets (WSB) at Reddit “on forecasting stock yield a few days later,” according to analysts, led by Ryan Preclaw and Brian Johnson.
Many investors see Tesla as one of the original “stocks meme”, in the opinion of some driven not only by the familiar financial accents that solidify stock fundamentals but FOMO, YOLO, and others, who say “fear of missing out” and “only live once” on investment decisions.
Stocks of companies such as GameStop Corp. GME,
AMC Entertainment Holdings Inc. AMC,
and another meme stock surged on WallStreetBets skyrocketed earlier this year, rolling out the stock market and leading to conference hearings and according to a probe guarantee statement.
Read also: Tesla’s stock crash was probably related to bitcoin betting
The Barclays analysts found a “statistically significant” relationship between the number of results and the total number of posts on the Reddit forum one and two days earlier, they said.
But that self-sufficiency in the roles “also means that the meaningful measures are less reliable than we would be better off relying on,” they said.
However, they warned that the situation has been “so dynamic that there are too few examples to be confident in a stable process between WSB posts and TSLA returns.”
And the old adage in manuals and financial information seems to be everywhere true in this case, no matter what the power of a meme.
“Even more commonly, past results may not predict future performance,” analysts said.