If you were watching Apple’s share price yesterday, you were in for a wild ride. It’s been riding high and most analysts have been predicting it to go yet higher, but it plunged 7% yesterday. The sudden price drop has been attributed to a report that surfaced originally on TheStreet.com (expect that site to suddenly be blocked at retail stores) that suggested that Apple was struggling with iPhone and iPod production.
9 million units to 4.5 million units, according to a note from Miller Tabak analyst Peter Boockvar.
The note cites talk among traders at Goldman Sachs and also includes speculation that the cuts may be coming in iPod production.
Here’s the thing. AppleInsider (of all sites) actually contacted Peter Boockvar to verify. He seemed a little irritated to be caught up in the fracas.
“We weren’t issuing any kind of report,” Boockvar said. “We don’t have an Apple analyst, we don’t even have a tech analyst.”
“Disregard it,” he told AppleInsider. “There’s no note on Apple today. It’s pure noise.”
Ooops. So much for that. Following a denial by Apple, the stock rebounded and all was right with the kingdom. For now. And something for investors to keep in mind, this site publishes mumblings of Jim Cramer, the guy that claimed the iPhone would come with 1.5 years of free service. Mad money indeed.
I don't know about you but I'm sticking with a stock where Cramer's record has been so good - http://www.stocktagger.com/2007/06/jim-cramer-keeps-riding-apple-aapl-on.html
Hey, the market just seem to react to the clash between reality and it's own inability to predict the future.
Not to the real worth of the company.
But that might just be me not understanding economics.
/Urban
One wonders whether its going to be possible for the subject of one of these statements (translation: made up story) can sue for losses. Individuals can sue for libel so I wonder whether there is case in all this at a corporate level. Not that I want to encourage litigation culture or anything but where does this stop?
The market appears a wee bit jittery.