Advanced Stock Market Prediction Using Long Short-Term Memory Networks: A Comprehensive Deep Learning Framework

Fuente: arXiv
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Main Author: Chaudhary, Rajneesh
Format: Preprint
Published: 2025
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author Chaudhary, Rajneesh
author_facet Chaudhary, Rajneesh
contents Predicting stock market movements remains a persistent challenge due to the inherently volatile, non-linear, and stochastic nature of financial time series data. This paper introduces a deep learning-based framework employing Long Short-Term Memory (LSTM) networks to forecast the closing stock prices of major technology firms: Apple, Google, Microsoft, and Amazon, listed on NASDAQ. Historical data was sourced from Yahoo Finance and processed using normalization and feature engineering techniques. The proposed model achieves a Mean Absolute Percentage Error (MAPE) of 2.72 on unseen test data, significantly outperforming traditional models like ARIMA. To further enhance predictive accuracy, sentiment scores were integrated using real-time news articles and social media data, analyzed through the VADER sentiment analysis tool. A web application was also developed to provide real-time visualizations of stock price forecasts, offering practical utility for both individual and institutional investors. This research demonstrates the strength of LSTM networks in modeling complex financial sequences and presents a novel hybrid approach combining time series modeling with sentiment analysis.
format Preprint
id arxiv_https___arxiv_org_abs_2505_05325
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Advanced Stock Market Prediction Using Long Short-Term Memory Networks: A Comprehensive Deep Learning Framework
Chaudhary, Rajneesh
Computational Engineering, Finance, and Science
91G10, 68T07
I.2.7; I.5.1; J.4
Predicting stock market movements remains a persistent challenge due to the inherently volatile, non-linear, and stochastic nature of financial time series data. This paper introduces a deep learning-based framework employing Long Short-Term Memory (LSTM) networks to forecast the closing stock prices of major technology firms: Apple, Google, Microsoft, and Amazon, listed on NASDAQ. Historical data was sourced from Yahoo Finance and processed using normalization and feature engineering techniques. The proposed model achieves a Mean Absolute Percentage Error (MAPE) of 2.72 on unseen test data, significantly outperforming traditional models like ARIMA. To further enhance predictive accuracy, sentiment scores were integrated using real-time news articles and social media data, analyzed through the VADER sentiment analysis tool. A web application was also developed to provide real-time visualizations of stock price forecasts, offering practical utility for both individual and institutional investors. This research demonstrates the strength of LSTM networks in modeling complex financial sequences and presents a novel hybrid approach combining time series modeling with sentiment analysis.
title Advanced Stock Market Prediction Using Long Short-Term Memory Networks: A Comprehensive Deep Learning Framework
topic Computational Engineering, Finance, and Science
91G10, 68T07
I.2.7; I.5.1; J.4
url https://arxiv.org/abs/2505.05325