Engadget Knocks $4 billion Of Apple Market Cap on Bogus iPhone email
May 16, 2007 – 6:10 pm
I think some Apple investors got a lesson today in the power of social media.
Engadget Knocks $4 billion Of Apple Market Cap on Bogus iPhone email
[via TechCrunch]
One post has a $4 billion impact? Wow.
There are theories that someone was trying to make money on the drop via shorting the stock. I’m sure there will be plenty of lawyers hired to make sure somebody is held responsible.
Even though the email that was posted to the site turned out to be fake, the impact was definitely felt, with the stock closing down around a dollar per share, or roughly 1%.
Put into broader view, a 1% stock change can happen on any typical day, and really isn’t that far out of the ordinary. At one point the stock was down around 5%, but recovered by the closing bell: Yahoo! Finance
One Response to “Engadget Knocks $4 billion Of Apple Market Cap on Bogus iPhone email”
I’m not quite sure why everyone is making a huge deal out of this - as you pointed out, fluctuations (and much bigger ones than are noted here) occur in the market every day.
Rumors have always had an impact on stock prices. Speculative investors get burned, and long term investors end up just fine.
I suppose Apple is seen as a company that can do no wrong; therefore, people gasp when their stock drops a couple of points.
-Jameson
By Jameson Huckaba on May 17, 2007