From the article:
abstract
We look at the market consequences of due diligence reports (DD) on Reddit’s Wallstreetbets (WSB) platform. We found the average ‘buy’ recommendations resulting in a two-day announcement profit of 1.1%. Furthermore, profit increased by 2% in the following month and nearly 5% in the following quarter. Retail trading surged during the day after the announcement and retail investors were more likely to net buy following reports of larger profits. Consequently, in stark contrast to regulators concerned that WSB’s investment advice is harming retail traders, our findings suggest that both WSB poster and user power.
