Slashdot Mirror

← Back to Stories (view on slashdot.org)

How One Tweet Wiped $8bn Off Twitter's Value

Posted by samzenpus on from the some-mistakes-are-bigger-than-others dept.

An anonymous reader writes: Someone mistakenly published earnings information on a Nasdaq-run investor relations page for Twitter before the company officially released the news and it sent the stock into a tailspin. Initially the earnings statement went unnoticed, but soon a Tweet with the results got a lot of attention. The stock lost more than $8 billion at one point as news spread. "We asked the New York Stock Exchange to halt trading once we discovered our Q1 numbers were out, and we published our results as soon as possible thereafter," said Twitter's senior director for investor relations, Krista Bessinger. "Selerity, who provided the initial tweets with our results, informed us that earnings release was available on our Investor Relations site before the close of market. Nasdaq hosts and manages our IR website, and we explicitly instructed them not to release our results until after the market close and only upon our specific instructions, which is consistent with prior quarters. We are continuing to investigate with them exactly what occurred."

6 of 185 comments (clear)

  1. The real question here by Anonymous Coward · · Score: 5, Insightful

    How is something as useless and stupid as Twitter be worth more than $8bn in the first place?

    1. Re:The real question here by qeveren · · Score: 5, Insightful

      Value is entirely based on perception.

      --
      Don't just stand there, get that other dog!
    2. Re:The real question here by MobileTatsu-NJG · · Score: 5, Insightful

      How is something as useless and stupid as Twitter be worth more than $8bn in the first place?

      Maybe it's not as stupid as useless as you think. Why wouldn't real-time stats on what people on the internet are talking about be worth some major buckage?

      --

      "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

    3. Re:The real question here by pushing-robot · · Score: 4, Insightful

      Twitter is RSS feeds, centralized and simplified. It works well for a lot of people.

      If it's stupid and it works, it's not stupid.

      --
      How can I believe you when you tell me what I don't want to hear?
  2. Twisted perception by Taco+Cowboy · · Score: 5, Insightful

    Value is entirely based on perception

    ... which is often biased and/or twisted

    --
    Muchas Gracias, Señor Edward Snowden !
    1. Re:Twisted perception by MrBigInThePants · · Score: 5, Insightful

      All currencies are Fiat.

      Just because you back one thing of perceived value with another thing of perceived value does not make it less than arbitrary.
      Although I will agree backing it with gold makes it "less arbitrary" it is still arbitrary. Not that this is possible anyway since moving a large economy to this would cause a disaster scenario in the price of gold and there is not enough gold for this anyway.