Divergent opinions on social media

This study analyzes the informational value of tweets in which opinions diverge from the consensus. I identify them using each firm's most positive and negative intraday social media sentiments. I find that these divergent opinions-specifically, negative ones-predict stock returns without subsequent reversals. Additionally, they contain incremental information on firm fundamentals identified by subsequent revisions to analysts' target prices and earnings forecasts. Finally, I find that return predictability is attributed to the fundamental information contained in the divergent opinions. My analysis sheds light on the role of divergent opinions on social media.