Strategic bot activity in financial social media
Document Type
Article
Publication Title
Finance Research Letters
Publication Date
2026
Abstract
This paper examines whether automated social media accounts (“bots”) target stocks strategically or randomly. Using cashtagged Twitter data for U.S. equities from 2019 to 2022 and Botometer-based measures of automation, we document systematic patterns in bot activity across stocks and market conditions. Bots disproportionately engage with underperforming stocks and those experiencing elevated selling pressure, with responses that are significantly stronger following negative returns and high-volume down days. Analyst coverage amplifies these effects, while firm size plays little role, indicating that bots are drawn to visible stocks precisely when vulnerability is highest. Overall, the findings suggest that bots intensify market stress rather than merely reflect investor attention.
Volume
96
DOI
https://doi.org/10.1016/j.frl.2026.109808
Recommended Citation
Paydarzarnaghi, M., & Rakowski, D. (2026). Strategic bot activity in financial social media. Finance Research Letters, 96, 109808. doi:10.1016/j.frl.2026.109808
Comments
Published in: Finance Research Letters, volume 96, 2026.