TheStreet.com Reports iPhone Production Reduction; Stock Takes A Kick In The Apples
Amit Chowdhry | Tuesday July 31, 2007 | 911 views| 1 Comment
Last May, Engadget reported that the Apple iPhone would have delays in production but the rumor was untrue. Wall Street reacted though. Apple’s market cap lost $4 billion temporarily and the stock dropped quite a bit for a couple of hours. Â
The Apple stock has taken another beating caused from a web site’s report again. This time it wasn’t Engadget though. It was TheStreet.com. According to CNBC, “The report first surfaced on TheStreet.com, claiming that Apple would reduce production of its iPhone from ’9 million units to 4.5 million units, according to a note from Miller Tabak analyst Peter Boockvar.’”
However when Boockvar was contacted for further clarification, he stated that he just simply agreed with TheStreet.com that there is a rumor. But then he said that “We weren’t issuing any kind of report” and “We don’t have an Apple analyst, we don’t even have a tech analyst.” Boockvar continued, “Disregard it” and “There’s no note on Apple today. It’s pure noise.”
The interesting part of both of these occurences is that there seems to be a correlation between how the Apple stock reacts to negative blog posts and news stories. I wonder how much of a reverse effect there would be if there was positive news in blogs and other sources.
References:
[1] Engadget: False alarm: iPhone NOT delayed until October, Leopard NOT delayed again until January
[2] CNBC: Apple Shares Plunge on Rumors of iPhone, iPod Problems
[3] ValleyWag: Deja Vu
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