Tesla may be the biggest meme stock of them all.
Barclays analysts say the stock price of the electric-carmaker is strongly tied to how much people are talking about it on Reddit’s WallStreetBets forum.
After recently scraping the foul-mouth message board data behind Gametop Mania, the bank’s researchers found a “statistically significant” relationship between several posts about Tesla and its performance on the market.
Barclays analysts, led by Ryan Preclav and Brian Johnson, wrote in a research note this week, “We’ve found that social media memes matter more to TSLA stock performance than actual financial metrics, fundamentals or (we say) Can keep. “
Analysts found that Teslataic would outperform the S&P 500 a day or two after a major uptick in VolcarticsBets submission.
Tesla gave positive returns in the past five years in Reddit posts about the stock reaching 20 spikes, meaning “statistical significance does not seem to be due to just one event,” the researchers said.
The Barclays team wrote in its Tuesday note, “The model that we think is the most appropriate, a swing of 7 or more submissions today is forecasting returns to TSLA stock.”
But conclusions came with some cavities. Analysts only examined the posts WallStreetBets that mentioned the ticker symbol of Tesla without referring to any other stock. According to the note, there may not be enough data to form a solid-concrete link between Reddit nonsense and Tesla’s movement.
“The situation is so dynamic that there are just a few examples to be assured of a stable process between WSB positions and TSLA returns,” the analysts wrote. “More than usual, past results cannot predict future performance.”
Tesla shares declined 6.3 percent to $ 695 after Thursday Bloomberg News reports The Elon Musk-led automaker halted production of some of its Model 3 sedans at its California plant for about two weeks.
The stock came under pressure earlier this week due to a drop in the price of bitcoin, which Tesla added to its balance sheet last month.