This post is in continuation of a series of posts I made in the previous weeks. The response I received was amazing and a lot of you were asking for continued weekly updates. So here goes!
Most Discussed Stocks of the Week
GME narrowly edged out PLTR to retain its number 1 position as the most discussed stocks. Both the stocks have very similar sentiment due to the wild rides the stock price had this week. AMC also had a significant jump in chatter due to the ~30% rally the stock experienced this week. Newcomers to the top 10 list are UWMC due to their strong Q2 outlook and buyback announcement as well as Alibaba group whose stock took a beating this week but investors are still bullish on the long-term aspects of the company which is reflected in the sentiment.
Top Growing Stocks of the Week
Above is the list of stocks that have exploded in the number of mentions throughout social media. We definitely have some interesting stocks on the list.
Inovio Pharmaceuticals($INO) was creating chatter mainly due to two reasons. They filed a joint patent with Regeneron($REGN) for treating GBM (a type of severe brain cancer which did not have a cure till now). The trial results look promising and also there have been some unsubstantiated rumors about Regeneron buying out Inovio. Adding to this, they have also completed Phase II trial for their Covid-19 vaccine which showed an excellent immune response. The USP is that the vaccine does not require refrigeration and is cheap to manufacture which makes it ideal for developing countries. Overall investors seem to be extremely bullish on the stock which is reflected in the sentiment.
Trade Desk($TTD) stock declined more than 25% on a single day following the company’s latest earnings report. Even though the company’s revenue climbed 37% compared to the year-earlier quarter, have kept customer retention rates over 95%, and announced a 10-for-1 stock split, investors did not seem to appreciate the short-term future prospects of the company and were expecting an even bigger beat of estimates. The sell-off can also be partially attributed to “Cookie Crisis” – the traditional way publishers and marketers have collected consumer data – through third-party “cookies” – is being phased out of the industry due to data privacy and control concerns. This can be an existential crisis for Trade Desk’s business model.
Fubotv ($FUBO) stock has been highly volatile ever since its IPO in October. The stock spiked as high as $60 but since has fallen to nearly $20. Shares of the company jumped earlier this week due to strong quarterly reports with revenue rising more than 135% and subscriber base doubling from the year-ago quarter. The share price again popped on Friday with the stock finishing up 12.4%.
Alibaba Group ($BABA) has been down ~20% last month. Their earnings report also did not help with the company missing the earnings but beat on revenue and annual active consumers. The company’s earnings were heavily affected by a $2.8 Billion fine imposed by China for Market Regulation. There are mixed opinions from the investing crowd with some believing that the stock is oversold and is undervalued right now vs others believing it’s not prudent to invest in Chinese stocks.
UWM holdings ($UWMC) has been trending due to their quarterly report and the CEO’s announcement to buy back $300MM of shares. Investors believe that the company’s share price is at all-time lows and the company having a low PE ratio and a 5.7% dividend yield makes it all the more attractive. The company is also being considered to be added to Russell 1000 in June which can be a short-term catalyst.
How does the program work: The program is built using Python and uses both Twitter and Reddit API to stream comments and tweets and spot tickers that are exhibiting accelerated growth. I added sentiment analysis to the findings so as to check the general sentiment (whether what is being talked about in the stock is positive or negative).
What is sentiment: It's calculated using natural language processing with a modified version of vadersentiment. You get pre-trained models which classify whether a given statement is positive or negative. I have modified it to analyse financial comments also ( eg. Calls, puts, moon, gain, loss etc). It then classifies the statement between -100% and +100% depending on if it's negative or positive respectively. The numbers you are seeing here are the average across all the comments.
Thank you for reading!
Disclaimer: I am not a financial advisor.
Jump To The Original Source