President-elect Donald Trump has no intention of giving up his Twitter account when he takes office, and the so-called “Tweeter-in-chief” said the followers should expect more posts.
Mr. Trump’s ability to influence a company’s stock prices with a single tweet is no secret -- just ask companies like Boeing, Ford, Toyota or Macy’s. All it takes are 140 characters for him to move markets in a big way.
So one financial app, called Trigger, has even created an alert to notify users if Trump tweets about a company they have invested in, reports CBS News correspondent Alex Wagner.
“He’s tweeting about specific companies, calling them out on Twitter and that’s having massive effects in the stock market,” said Trigger CEO Rachel Mayer.
Abbey Klaassen, chief marketing officer for ad agency 360i, said brands need to be ready for anything, because Trump’s Twitter feed can instantly hurt or help a company.
“Presidents and brands have always intersected over the years, but this is an entirely new level of engagement,” Klaassen said. “It’s about thinking through the motions of, ‘Okay, how do we react if Trump tweeted this positive thing to us, if he tweeted this negative thing to us?’”
Earlier this month, he targeted General Motors on Twitter for Mexican-made Chevy Cruzes, threatening: “make in U.S.A. or pay big border tax.”
GM’s stock dropped one percent. The company said most Cruze models are made in Ohio.
Lockheed Martin’s shares also plummeted nearly three percent when Trump tweeted that the defense company’s F-35 program costs were “out of control.” Lockheed’s CEO personally vowed to lower costs.
Hits to both companies’ stock prices were temporary.
Trigger’s app tracks major financial news and events -- or trigger -- to help investors. The latest Trump alert quickly became their most popular feature.
“One single tweet we’ve seen can eradicate market cap losses in the billions of dollars. One single tweet can adjust the strategy of a large Fortune 500 company,” Mayer said.
Klaassen said some companies may profit.
“Do you think we’re going to see the tables turn in the coming years where companies go after Trump in the hopes of bating themselves into a Twitter war and raising their public profile?” Wagner asked.
“You know the adage, about ‘all publicity is good publicity?’ I’m sure there will be companies out there that think that this is a great idea; I’m sure it will be a way to get on Trump’s radar,” Klaassen said. “And if you’re on Trump’s radar, there’s a good chance you’re going to be on a lot of other people’s radar very soon.”
While the majority of the companies featured on Mr. Trump’s Twitter feed took hits, some companies have seen boosts. Fiat Chrysler saw an uptick in its stock price after a favorable tweet from the president-elect
According to experts, the lasting effects of Mr. Trump’s tweets on the economy and big business are yet to be seen.