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Can One Tweet Cause a 132 Billion Dollar Swing?

People are blaming Hillary Clinton’s late September tweet, in which she vowed to put an end to price gouging, for a downturn in the biotech market. Let’s put aside the fact that it’s incredibly sad that the biotech industry relies so much on gouging. I’m more astonished at the power a tweet can have, if this 140 character missive really did cause such a swing.

First off, are people really so naive that they think a politician will actually do what they say they are going to do? One need only to look at those videos showing the promises presidential candidates make on the campaign trail to know that’s not the case. They usually do the exact opposite of what they say they are going to do once they get into office. HIllary can spout off all she wants, but I bet I see her at a pro-life rally before I see her make any meaningful changes with regards to price gouging.

Second, if her tweet was that impactful, are we looking at a future where anyone with influence can affect the market over social media? If The Rock, with his 29 million instagram followers, says that we should all invest in Fitbit (NYSE: FIT), will that inflate the price? Could Justin Bieber, the king of Twitter, move the markets by announcing that he is going to rely heavily on Salesforce (NYSE: CRM) as he starts a new business?

It’s a scary new reality to consider, and one that financial regulators are going to have to really work to monitor. Seems like there are more than a few celebrities out there (*cough* Kardashians *cough*) who might use their power for evil pump and dump schemes.