FinMoji: A Framework for Emoji-driven Sentiment Analysis in Financial Social Media

This paper explores the use of emojis in financial sentiment analysis, focusing on the social media platform StockTwits. Emojis, increasingly prevalent in digital communication, have potential as compact indicators of investor sentiment, which can be critical for predicting market trends. Our study examines whether emojis alone can serve as reliable proxies for financial sentiment and how they compare with traditional text-based analysis. We conduct a series of experiments using logistic regression and transformer models. We further analyze the performance, computational efficiency, and data requirements of emoji-based versus text-based sentiment classification. Using a balanced dataset of about 528,000 emoji-containing StockTwits posts, we find that emoji-only models achieve F 1 ≈ 0.75, lower than text–emoji combined models (F 1 ≈ 0.88) but with far lower computational cost—a useful feature where time is at a premium, such as in high-frequency trading. Furthermore, certain emojis and emoji pairs exhibit strong predictive power for market sentiment, demonstrating over 90% accuracy in predicting bullish or bearish trends. Finally, our research also reveals extreme statistical differences in emoji usage between financial and general social media contexts, stressing the need for domain-specific sentiment analysis models.