The Power Of A Link: How Mere Mention By Drudge Can Send A Stock Price Tumbling
Coincidence? Maybe. But there’s no denying the stories Matt Drudge puts on his Drudge Report get plenty of attention. For bloggers and media types, a Drudge link feels like winning the lottery–suddenly the world’s at your door, eagerly consuming your content. But what if the content in that Drudge link is bad news about your business? Well, that’s a lot of eyeballs reading something you’d rather see buried. Instead, the Drudge link can grab hold of your stock price and sink it six feet under.
Take, for instance, General Motors... Every time Drudge links to a lousy story–like the April 10 story in The Wall Street Journal about a Chevy that lost its steering wheel–the carmaker’s stock falls faster down the edge of the mountain:So the lesson’s clear–at least for auto makers–make sure your steering wheels stay on tight, and try to get ignored by The Drudge Report.
Uhm, dude. A better approach: try making cars that people want to buy and you won't have to fear publicity.
3 comments:
Errr... wouldn't the stock-price drop occur within 24hrs of the Drudge post, not days or a week afterward? Especially that plunge between 14 and 21 February.
Since Obama defecated upon America, I don't see that any stock is safe.
But the absolute stupidest thing an investor could do is invest in Obama.
Such investors, mutual funds, corporations, should be identified and committed to the suitable institutions.
Drudge's link to the story about a garage that burned down as a brand new Chevy Volt was being charged, imho was pure BS.
Drudge made it sound like the Volt caused the fire when in fact officials clearly stated they didn't know the cause.
Plus it turns out, these people had a home made electric car charging next to the Volt.
That's just wrong.
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