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Technically, the single tweet did not send the shares soaring. A significant investment from successful active investor Icahn did. The tweet just revealed the i
by sbashyal 13y ago
Technically, the single tweet did not send the shares soaring. A significant investment from successful active investor Icahn did. The tweet just revealed the investment to public.
Take Elon Musk's tweet that Tesla was being profitable for the first time as an example. The tweet lead to soaring stock price but the cause was excellent execution by Tesla team, not the tweet itself.
- xwowsersx 13y agoImportant point. Nicely said.
- martindale 13y agoYes, but now argue it in court.
- EvanKelly 13y agoIn this case you're probably right, but lots of HFT algorithms do use Twitter as a feed to inform trading strategies. Tweets can literally send stocks soaring or sinking.
- patmcguire 13y agoThat's why Warren Buffet gets every time Anne Hathaway makes a movie. http://www.theatlantic.com/technology/archive/2011/03/does-anne-hathaway-news-drive-berkshire-hathaways-stock/72661/ http://www.theatlantic.com/technology/archive/2011/03/does-a...
- aaronbrethorst 13y agoTrees falling in the forest, etc. etc.
- markbao 13y agoI think it's a combination of both. Icahn's investment in Apple was the reason that people found reason to invest, but that information was brought to people through the distribution channel of Twitter. So Twitter is an accomplice in this situation, since it acts as how that information got disseminated to an audience, which I think still counts for a lot since it could have been an important signal, but it without Twitter, not as many people might have not known about it. Not only that, but the fast dissemination of this information (due to the nature of Twitter) might have made the stock go up faster than a news article coming out a day later, being read at different times of the day.