A Single Trump Tweet Reveals the Market Power of Social Media
A recent tweet from Donald Trump plummeted the value of Lockheed Martin's stocks. What implications does this hold about the economic influences of social media?
A recent tweet by Donald Trump criticizing the costliness of Lockheed Martin's F-35 program caused its stock to plummet by about $3.5 billion. The effects were not only immense but also immediate: The Independent reported Boeing fell by 1.5% after the tweet.
Although the impact on Lockheed Martin is likely temporary, this reflects the power that Twitter as well as other social media outlets have on society and the marketplace. There are numerous examples of individual posts on social media having dramatic economic consequences. A more severe case occurred in 2013, when the Associate Press’s Twitter account was hacked. A tweet was posted describing a false attack on the white house in which Barack Obama was injured. In the hour after the false news had been tweeted, according to CNN, the Dow Jones dropped nearly 13 points.
More commonplace examples of the intersection of social media and the economy lie in the rapid rise in investments by companies in online marketing campaigns throughout recent years. Contributor Christine Moorman reported for Forbes on the surges in corporate spending on social media – all in spite of a general lack of reliable metrics to measure returns on those investments. Indeed, even the FDA is investigating how it might use Twitter to spread information about pharmaceutical drugs and their side effects. While not a corporation, this reflects the general belief in the power of social media in affecting people’s opinions and consumption.
Alongside the increased presence of political and corporate entities in social media, posts of non-famous individuals are also growing to become more consequential. One such incident is noted of a recent documentary about comedy and free speech entitled Can We Take a Joke?. In this case, a woman tweeted a joke before boarding a plane and by the time she got off, she had lost her job and incurred death threats as a consequence.
More generally, social media has created an uncomfortable tension for employers. As employees’ outside-of-work comments are increasingly visible publicly, managers face dilemmas concerning ethics and professionalism. Stephanie Chen described this tension in an article for CNN. In it, she reflects on the ways social media and workplace tensions have clashed. She recalls, for instance, a viral video of two Domino’s employees that led the company to fire and sue them. She offers the prescriptions of an attorney who says of any social media posting: “It can become public and stay out there forever. Don't post anything you don't want to send to your boss in an e-mail.”
For stock markets, businesses, and employees alike, social media has become a complex but powerful force.
Researchers discover a link between nonverbal synchronization and relationship success.
- Scientists say coordinating movements leads to increased intimacy and sexual desire in a couple.
- The improved rapport and empathy was also observed in people who didn't know each other.
- Non-verbal clues are very important in the development stages of a relationship.
Humans evolved to live in the cold through a number of environmental and genetic factors.
- According to some relatively new research, many of our early human cousins preceded Homo sapien migrations north by hundreds of thousands or even millions of years.
- Cross-breeding with other ancient hominids gave some subsets of human population the genes to contend and thrive in colder and harsher climates.
- Behavioral and dietary changes also helped humans adapt to cold climates.
Could this be the long-awaited solution to economic inequality?
Under capitalism, the argument goes, it's every man for himself. Through the relentless pursuit of self-interest, everyone benefits, as if an invisible hand were guiding each of us toward the common good. Everyone should accordingly try to get as much as they can, not only for their goods but also for their labour. Whatever the market price is is, in turn, what the buyer should pay. Just like the idea that there should be a minimum wage, the idea that there should be a maximum wage seems to undermine the very freedom that the free market is supposed to guarantee.
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