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Not photoshop, but video editing software could. What looks fake to me is the fact that there is a TON of swirling going on around the UFO, but the clouds in the background don't seem to move much at all. Someone could have made the video with the scripted dialogue, then gone back in and edited in the UFO and swirling clouds overlay.
That's the problem with all this today. The software has gotten so sophisticated, and so easy to use, anything can be done. Heck, Photoshop has a Content Aware tool, that allows you to select a fill area, then choose content aware and the program fills in with surrounding data. Great for extending skies and water. All you have to do then is go in and clean up the edges and no one is the wiser. Takes all of a few minutes.