INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD

Abstract:  This paper examines the structural and psychological impact of social media platforms—specifically Reddit, X (formerly Twitter), and YouTube—on the decision-making processes of Generation Z (Gen-Z) retail investors. Through the theoretical framework of behavioral finance, this study investigates how algorithmic content distribution, digital peer validation, and content consumption dynamics drive herding behavior, Fear of Missing out (FOMO), and information cascades. Using a mixed-methods approach comprising a structured quantitative survey (N=100) and empirical sentiment analysis of platform discourse, the paper demonstrates from a student perspective that Gen-Z investors disproportionately rely on algorithmic recommendations over traditional fundamental analysis. The findings indicate that while social media democratizes market access, it accelerates systematic noise trading and market volatility, creating critical challenges for individual risk management and market regulation.