Correlation between Google searches and stock price?

by Mick Weinstein|Published January 25, 2011

A new paper from the American Finance Association finds (from the abstract):

An increase in SVI [Google search frequency] predicts higher stock prices in the next two weeks and an eventual price reversal within the year. It also contributes to the large first-day return and long-run underperformance of IPO stocks.

HT: AR

AUTHOR

Mick Weinstein

Mick is the Head of Editorial for Covestor, a financial journalist and online content specialist. Prior to joining Covestor, Mick was for five years the Editor in Chief and VP Content at stock market analysis website Seeking Alpha, where he built the editorial function as the site attracted over 3.5 million unique monthly visitors and developed an innovative platform for intelligent stock market discussion. Mick is a graduate of the University of Michigan, Ann Arbor.

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