4 ms·

I think the most likely explanation is that Bloomberg got played by the sources who perhaps wanted to trade on the price action the story would obviously cause.

I think the most likely explanation is that Bloomberg got played by the sources who perhaps wanted to trade on the price action the story would obviously cause. We don't really know anything about Bloomberg's sources we do know the nature of all the parties denying any of this is true.

cm2187 8y ago
I find that highly unlikely. Since Supermicro was kicked out of the NASDAQ, I would expect their trading to be much thinner. It would be trivial for regulators to spot some inside trades. And if the sources are indeed intelligence officials, I'd expect their financials to be under special scrutiny.
- newaccoutnas 8y ago
  It wasn't only Supermicro that took a hit but also any company using their products (AWS etc)
- asdff 8y ago
  Everyone named in the article took a price hit that week. If you knew this article was coming you'd be well positioned for easy profit.
jakobegger 8y ago
Nope. The only named source in the article said on Twitter that the journalist reported speculation about possible attacks as facts. The story was fabricated by the journalist. How it got through fact-checking, I don't know.
- deleted 8y ago
  [deleted]
- asdff 8y ago
  That doesn't mean people didn't feed the journalist heavy handed speculation to make a profit from short positions.
criddell 8y ago
When your writers are rewarded for stories that move the market[1], it's going to be tempting to go for the sensational and to omit information that weakens the story. I think this might just be another case of unintentional consequences from incentives. [1]: https://www.businessinsider.com/bloomberg-reporters-compensation-2013-12 https://www.businessinsider.com/bloomberg-reporters-compensa...
asdff 8y ago
I think this is very realistic. These days prices move purely on speculation much more than they do on metrics like P/E. A source could have been in a short position, then after taking profit after the article was released could have bought up cheap shares. Thinking about the readership of Bloomberg, anything they publish will have a much larger market impact than an article in Ars. I think Bloomberg was played like a fiddle.

cm2187 8y ago

I find that highly unlikely. Since Supermicro was kicked out of the NASDAQ, I would expect their trading to be much thinner. It would be trivial for regulators to spot some inside trades. And if the sources are indeed intelligence officials, I'd expect their financials to be under special scrutiny.

newaccoutnas 8y ago
It wasn't only Supermicro that took a hit but also any company using their products (AWS etc)
asdff 8y ago
Everyone named in the article took a price hit that week. If you knew this article was coming you'd be well positioned for easy profit.

jakobegger 8y ago

Nope. The only named source in the article said on Twitter that the journalist reported speculation about possible attacks as facts. The story was fabricated by the journalist. How it got through fact-checking, I don't know.

deleted 8y ago
[deleted]
asdff 8y ago
That doesn't mean people didn't feed the journalist heavy handed speculation to make a profit from short positions.

criddell 8y ago

When your writers are rewarded for stories that move the market[1], it's going to be tempting to go for the sensational and to omit information that weakens the story. I think this might just be another case of unintentional consequences from incentives. [1]: https://www.businessinsider.com/bloomberg-reporters-compensation-2013-12 https://www.businessinsider.com/bloomberg-reporters-compensa...

asdff 8y ago

I think this is very realistic. These days prices move purely on speculation much more than they do on metrics like P/E. A source could have been in a short position, then after taking profit after the article was released could have bought up cheap shares. Thinking about the readership of Bloomberg, anything they publish will have a much larger market impact than an article in Ars. I think Bloomberg was played like a fiddle.