Like many, I am surprised (and somewhat dismayed) by the popularity of social media. Personally, I have made some valuable connections on Twitter. But for the majority of people who habitually log in to social media platforms, I fear time spent on the sites is time wasted. And while all social media companies tout glowing statistics about the rapid growth of their user bases, I remain skeptical about the real social value—and commercial viability—of their products.
I’ve always been intrigued by how seemingly small events can trigger sudden downturns in overvalued market sectors. In March of 2000, a Barron’s cover story did more than anything to accelerate the bursting of the dotcom bubble. Last week, a single tweet sparked a major selloff in biotechs and pharmaceuticals.