Enhancing Stock Price Prediction Through Sentiment Analysis A FinBERT-LSTM Approach to Market Sentiment Integration

Yunjie Chen; Junjie Liu; Peize Gao

doi:10.54254/2754-1169/2025.25278

Advances in Economics, Management and Political SciencesOpen access

Enhancing Stock Price Prediction Through Sentiment Analysis A FinBERT-LSTM Approach to Market Sentiment Integration

Research Article

Open Access

Enhancing Stock Price Prediction Through Sentiment Analysis A FinBERT-LSTM Approach to Market Sentiment Integration

Yunjie Chen ^1* Junjie Liu ², Peize Gao ³

¹ South China University of Technology

² Huazhong University of Science and Technology

³ University College Dublin

^*Corresponding author: 13506591817@163.com

Published on 20 July 2025

AEMPS Vol.204

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-287-4

ISBN (Online): 978-1-80590-288-1

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Abstract

Stock price prediction remains a complex challenge in financial markets due to the dynamic interplay of economic indicators, global events, and investor sentiment. This study explores the integration of sentiment analysis into stock price forecasting using a FinBERT-LSTM model. By leveraging financial news data and market indicators, we aimed to enhance predictive accuracy. Sentiment features, such as sentiment intensity and daily sentiment ratios, were extracted using the FinBERT model and combined with traditional market data in an LSTM framework. Comparative analysis demonstrated that the sentiment-enhanced model significantly outperformed the baseline LSTM model, particularly during periods of high market volatility. These findings highlight the critical role of sentiment in market dynamics, providing a foundation for more robust predictive models. Future research directions include the incorporation of additional sentiment sources and advanced model architectures to further improve performance and adaptability in diverse market conditions.

Keywords:

NLP, market sentiment, deep learning

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References

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References

Cite this article

Chen,Y.;Liu,J.;Gao,P. (2025). Enhancing Stock Price Prediction Through Sentiment Analysis A FinBERT-LSTM Approach to Market Sentiment Integration. Advances in Economics, Management and Political Sciences,204,1-8.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of the 4th International Conference on Business and Policy Studies

ISBN: 978-1-80590-287-4(Print) / 978-1-80590-288-1(Online)

Editor: Canh Thien Dang, Li Chai

Conference website: https://2025.confbps.org/

Conference date: 20 February 2025

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.204

ISSN: 2754-1169(Print) / 2754-1177(Online)

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