20/10/2026
The European Securities and Markets Authority (ESMA) published its analysis “Social media sentiment and retail trading behaviour” on 13 October 2026, which looked at how opinions and positions that are spread on social media affect the investment decisions and trading results of retail investors.
The analysis finds that opinions spread on social media can have a significant impact on what sort of investment decisions people make and when. Positive suggestions make persuade investors to sell profitable investments, while arguments taking the opposite stance may make them increase their purchases or sell at a loss. This could mean that investors take their profits out too early and miss out on the chance to earn additional returns at just the moment when the outlook for the market is starting to improve.
The ESMA emphasises that risks to investor protection come not only from the spread of misleading information and market manipulation, but also from how opinions on social media can shape the decisions of investors. The analysis can be found on the website of the ESMA.