Blog power peaks: Engadget causes $4 billion in Apple losses
Many might feel that blogs are still not being held in the regard many would like; however, I would say yesterday marked a blogging “watershed event.” Engadget published a blog yesterday claiming an inside source at Apple sent out an email notifying employees that the iPhone and OS X Leopard would see further delays, which turned out bogus…however, in the process, they cost Apple $4 billion in market cap, as reported by WorldOfApple.
How did that come about? Within 6 minutes AAPL shares dropped from $107.89 to $103.42…a 3% drop in total.
Engadget claimed to receive an email from a trusted, confirmed Apple employee with the notification about the delay; they corrected their posting when Apple themselves notified the powers that be at Engadget that the email was not originated from any authority, making the email obviously bogus.
Fortunately for investors, stocks bounced back to just $1.40 from its original price before the fiasco, but plenty of nerves were shaken in the process. Some are even calling for a full-fledged SEC investigation of the case; after all, $4 billion is no pocket change.
What’s even more disturbing about this whole situation is the immense power that was displayed by one Engadget post. How far blogging has come that one tech post could dramatically change a market in just one day’s time!
There’s a very fine line between staying on the cutting edge of news and completely destroying the credibility bloggers have worked so hard to establish. Though this may not reflect badly on Engadget’s uber-popular image, what does it say about the credibility of blogs in general?
No doubt many are wondering whether “blogging authority” has overstepped its bounds…why not return back to the much safer and predictable world of conventional journalism?
As bloggers, our success is fatefully intertwined with the community; if we are to succeed and continue growing, we must take the steps necessary to ensure we are delivering what we have promised to the readers: cutting edge news with credibility and opinion.
We at Blorge promise to deliver as best we can the news readers want with the edge we’re known for, but we also vow to do it with credibility readers want. After all, who really wants to be held responsible for anyone losing $4 billion? I know I’m not getting paid quite that much…
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August 13th, 2007
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