Blog Predictions and Statements Can Make All the Difference! 0
Blogs have become more of rumor mills to date, being the premier source of information before they hit the news stands and channels. However, consistency is something up for debate and for some, total understanding of the whole ordeal may eventually lead to something disastrous.
This is clearly the issue regarding the release of the iPhone launch originally posted at Endgadget. Apparently, the tip turned out to be a false alarm and this eventually affected the stock trading of Apple which tumbled by 3 percent and losing billions in the process.
Stock Manipulation Via Fake News –- Nothing New
I agree with others that speculate Engadget was played by a trader who knew that this story would have a negative impact on Apple stock. My guess is they used this rumor to short Apple stock and mint a fortune.
Blog bashers will point to Engadget’s flub for years to come. But it’s important to remember “traditional” media has fallen for similar chicanery before to.
In 2000 Emulex, a networking firm, saw its stock take a nosedive from a morning high of $113.06 to a low of $43 by lunch time. What prompted the stock to drop was headlines that appeared on major wire service proclaiming: “Emulex Announces Revised Earnings; SEC Launches Investigation Into Accounting Practices. Paul Folino Steps Down As CEO.”
The story was fake. It was planted by a then 23-year-old Mark Jakob, a former employee of a wire service called Internet Wire. The story was planted by Jakob on the wire and it was picked up by major news outlets as real. The FBI investigated and arrested Jakob. Published reports say Jakob made $250,000 from his scheme, money he later had to return.
If the Apple/Engadget incident is a case of stock manipulation than this is a coming-of-age moment for Wall Street miscreants who target blogs. The success found with dropping Apple stock will only fuel the cottage industry of manipulating stock prices through e-mail, message boards, and blogs. With Engadget the scammer(s) landed a big fish. You better believe they are thinking about a new stock/blog target right now. – False alarm: iPhone NOT delayed until October, Leopard NOT delayed again until January
[tags]blogger news, blog news, iPhone, apple, blunders, false alarms[/tags]