A Wikipedia Narration of the GameStop Short Squeeze

Abstract

This paper examines the usefulness of Wikipedia pageviews as indicator of the performance of stock prices. We examine the GameStop (GME) case, which drew the investors' and scholars' attention in 2021 due to the Short Squeeze (SSQ), and its skyrocketing price increase since 2021. We use the daily number of pageviews of Wikipedia pages for COVID-19, GME, and SSQ as explanatory variables for the period 31/12/2018-30/3/2022. The results show strong statistical evidence that increased number of Wikipedia pageviews for COVID-19, which represents the fear of the pandemic, has a negative impact on the GME performance. Moreover, the findings show that the increased interest in information regarding the short squeeze, as expressed by the increased number of pageviews of the relative Wikipedia page, is positively linked with the GME price. This approach holds the potential to yield benefits not only for entrepreneurs within the finance sector but also across various other fields. It serves as a valuable proxy for gauging the demand for goods, services, and/or overall interest in a market.