3 ms·

If a single tweet wipes $8 bn of your value - you are overvalued. Probably by an order of magnitude ...

Spooky23 12y ago
The issue was the early leak.
hodgesmr 12y ago
The entire market is subject to the reactions of tweets.[1] [1] http://www.washingtonpost.com/business/economy/market-quavers-after-fake-ap-tweet-says-obama-was-hurt-in-white-house-explosions/2013/04/23/d96d2dc6-ac4d-11e2-a8b9-2a63d75b5459_story.html http://www.washingtonpost.com/business/economy/market-quaver...
ifdefdebug 12y ago
I just don't understand that market. From the article: "(...) Twitter missing market analysts' revenue expectations of $456m by $20m (...)" - so one hour before, everybody was expecting $456m and held the stocks, now it's officially $430m and they get wiped like that? For less than 5%?
- reinhardt 12y ago
  I really don't grok stockmarket even though I participate in it (mostly passively). As an almost outsider, it looks like a self-referential make-believe game. You are rewarded (or punished) for predicting not some objective aspect of reality but for what most others (aka "the market") believe/think/feel about the reality. It's very bizarre.
  - lmm 12y ago
    You can always buy and hold and get your dividends; there are plenty of "boring" companies where the valuation is much less speculative. The newsworthy companies like Twitter are the ones where it's much more uncertain; no-one knows what kind of dividends Twitter is likely to pay in the future. But that's not the majority of the market.
anc84 12y ago
It's the insanity of the stock market where value means trust, not ownership or anything else "real world"-ish.
bmelton 12y ago
How many people would divest themselves of Goldman Sachs stock if a reputable source tweeted something like "Sachs CEO arrested for fraud, ponzi-scheme charges." For Sachs, $8 bn represents about 10% of their market cap. You don't think their stock would dip 10%?
- venomsnake 12y ago
  No one with a functioning brain would ... it is obvious by now that these guys are above the law ...

The issue was the early leak.

The entire market is subject to the reactions of tweets.[1] [1] http://www.washingtonpost.com/business/economy/market-quavers-after-fake-ap-tweet-says-obama-was-hurt-in-white-house-explosions/2013/04/23/d96d2dc6-ac4d-11e2-a8b9-2a63d75b5459_story.html http://www.washingtonpost.com/business/economy/market-quaver...

ifdefdebug 12y ago

I just don't understand that market. From the article: "(...) Twitter missing market analysts' revenue expectations of $456m by $20m (...)" - so one hour before, everybody was expecting $456m and held the stocks, now it's officially $430m and they get wiped like that? For less than 5%?

reinhardt 12y ago
I really don't grok stockmarket even though I participate in it (mostly passively). As an almost outsider, it looks like a self-referential make-believe game. You are rewarded (or punished) for predicting not some objective aspect of reality but for what most others (aka "the market") believe/think/feel about the reality. It's very bizarre.
- lmm 12y ago
  You can always buy and hold and get your dividends; there are plenty of "boring" companies where the valuation is much less speculative. The newsworthy companies like Twitter are the ones where it's much more uncertain; no-one knows what kind of dividends Twitter is likely to pay in the future. But that's not the majority of the market.

anc84 12y ago

It's the insanity of the stock market where value means trust, not ownership or anything else "real world"-ish.

bmelton 12y ago

How many people would divest themselves of Goldman Sachs stock if a reputable source tweeted something like "Sachs CEO arrested for fraud, ponzi-scheme charges." For Sachs, $8 bn represents about 10% of their market cap. You don't think their stock would dip 10%?

venomsnake 12y ago
No one with a functioning brain would ... it is obvious by now that these guys are above the law ...