How 1 Celebrity Tweet Can Cause a Company’s Stock to Lose Millions
Today, celebrities don’t need to wait around to be interviewed to share their opinions on products and companies. They can simply tweet their minds whenever inspiration strikes. This has had quite the effect on the stock market in recent years.
Read on to learn more about how celebrities have more power over stocks than you think, and a few examples of different celebrities shaking up the market — including how Kylie Jenner almost singlehandedly ruined Snapchat (page 5).
1. Is a celebrity using their fame to affect the stock market legal?
According to Matt Levine, it depends on a celebrity’s intentions. Levine writes that as long as a celebrity, or a highly influential person, doesn’t tweet something with the intention of driving the market for their own personal gain, they’re probably fine.
Next: Companies need to keep celebrities happy for this reason.
2. Celebrity influencers need to be kept happy for companies to succeed
The stock market is still adjusting to life with celebrity influencers in the picture. Many companies today are only as strong as the influencers say they are. If an influencer has enough pull, they can completely affect a company’s standing.
“Moral of the story: If you want your company to thrive, keep celebrity influencers happy,” says Marie Claire.
Next: Donald Trump tweeted about the high cost of the new 747 Air Force One.
3. Donald Trump lowers the Boeing company’s share
In 2016, Donald Trump tweeted: “Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!”
His tweet lowered the company’s stock by nearly $2 a share, according to Independent.
Next: Anti-virus software mogul John McAfee shares his opinions on SAFEX.
4. John McAfee’s tweet about altcoins helped raise their profile
The famous anti-virus software mogul, John McAfee took to Twitter to tell his followers about the benefits of “altcoins,” cryptocurrencies that are similar to Bitcoin. He then tweeted about an altcoin called SAFEX and how it held a “majority of” his holdings.
Shortly after, the price of SAFEX raised 92%, according to Independent.
Next: Kylie Jenner almost single-handedly ruined Snapchat.
5. Kylie Jenner’s tweet sends Snapchat into turmoil
Kylie Jenner made waves in the stock market when she tweeted about using Snapchat less. Upon her tweet, Snapchat’s parent company sank 6.1%, losing $1.5 billion in market value, according to Marie Claire.
Jenner has over 25 million followers on Twitter, and she has a lot of influence on her fans — so much influence that she can shake up the stock market with a single tweet.
Next: This celebrity said Chipotle almost killed him.
6. Jeremy Jordan’s tweet sends Chipotle stock crashing
Remember when all the Chipotle food poisoning drama was taking place? Actor Jeremy Jordan played a big part in that.
He tweeted about how he “almost died” from food poisoning from Chipotle, and shortly after the company’s stock fell to the lowest it had been in nearly five years.
Next: Hillary Clinton caused biotechnology stock to drop.
7. Hillary Clinton’s tweet about biotech drugs
In 2015, Clinton posted a tweet that read: “Price gouging like this in the specialty drug market is outrageous. Tomorrow I’ll lay out a plan to take it on. -H.”
“The former first lady’s comments clearly spooked investors. The iShares Nasdaq Biotechnology ETF (IBB) went from flat on the day before the Clinton tweet to closing down nearly 5%,” says CNN Money.
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