Jobs is Fine, but Apple Stock Drops After Rumor

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News Posted: Tue, Dec 30 2008 8:48 PM

Another day, another drop in Apple stock caused by a questionable rumor about the health of CEO Steve Jobs.  Jobs' health has been in question since he appeared at WWDC in a somewhat gaunt condition.  However, as Jobs himself said with a slide positioned directly behind him, the "rumors of his death are greatly exaggerated."


The latest set of rumors were from Gizmodo.  A post at their site said:

Steves health is rapidly declining. Apple is choosing to remove the
hype factor strategically vs letting the hype destroy apple when the inevitable news comes later this spring.

This strategic loss will be less of a bang with investors. This is why Macworld is a no-go anymore.
No more Steve means no more hype. Saying they are no longer needing
[Macworld] is the cover designed by the worldwide "loyalty" department.
Now, Gizmodo was cautious about the rumor.  But it affected Apple stock.  Just take a look at today's chart, and we're sure you can guess when the rumor hit the wire.  Right?



And the rumors wer promptly debunked by CNBC, who said:

I was told two weeks ago by sources inside Apple that the decision had
nothing to do with Jobs' health. I got the same message today. Period.

I
will say again: if Apple is lying, holding some truth back,
manipulating its own stock by manipulating the truth, someone — indeed
a lot of people — could be going to jail. Do I like the way Apple has
handled this ongoing story? No. But do I traffic in rumors to fill the
void the company has created by not choosing to be more forthcoming
about Jobs' health? Absolutely not.
Ouch!  Obviously Gizmodo is in the biz of breaking stories.  But in this case, their rumor caused a big drop in Apple's market capitalization.  What do you think, readers?  Should a rumor that might affect a company's stock be vetted more carefully?  You might recall the iReport Steve Jobs story that caused a major tanking earlier this year, when an unfounded "heart attack" rumor was posted.



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I'm going to start buying stock every time a bad apple rumor comes out. Then selling after its debunked. My luck the time I do that though he really woul.d kick the bucket.

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tanka12345 replied on Tue, Dec 30 2008 10:31 PM

Thats a good idea, but if he died like you said, you'd lose money. Smile

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3vi1 replied on Wed, Dec 31 2008 9:22 AM

Do Apple investors know something we don't? Is the #2 guy at Apple someone who wears a football helmet 24x7 and constantly vocally expresses his desire to sell the company off as parts?

I can't imagine either being true, which proves that the Steve Jobs Reality Distortion Field still kicks ass after all these years.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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SSinChina replied on Wed, Dec 31 2008 9:33 AM

Left HugRight Hug

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SSinChina:

Jobs has been accused more than once of not being completely forthwith (in the legal sense of the word) about his health as is prudent of someone not only holding the post of CEO, but also being one of (if not the single greatest) driving force behind Apple's recent releases.

idk that he is. I think if he vanished today the company would continue on just as it has been. When it was smaller I'm sure he did and I don't doubt that he has had a lot to do with the reason that Apple is were it is today, but you can only micro manage so much.

 

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3vi1 replied on Wed, Dec 31 2008 10:06 AM

I think he's just lucky to be at the helm while their marketing department and product designers are doing such a good job of re-inventing products and selling them as "cool".

Apple not doing so well for the 10 years after they fired him has nothing to do with his absence - most other "alternative" computer manufacturers (Commodore, Atari, etc.) all went out of business in that period.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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GiantDwarf replied on Wed, Dec 31 2008 12:01 PM

If Steve Jobs dies today, Apple will suffer a lot before recovering. They should have a Plan B in case something happens to him, after all he has a history of cancer. He is the center of all decisions, he has knowledge he does not share and there is no one there that can step up if something happens to him. That is bad strategy. Large corporations must always have someone ready to take place as CEO in case the current one dies. If he trains someone to succeed him and make it public to the shareholders, there will be no more loss of value of Apple's stock when a rumor surfaces.

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3vi1 replied on Wed, Dec 31 2008 6:12 PM

>> They should have a Plan B in case something happens

You mean like an android duplicate, right?

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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SSinChina replied on Wed, Dec 31 2008 7:26 PM

Left HugRight Hug

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3vi1 replied on Wed, Dec 31 2008 8:12 PM

And they should videotape it. And we could call it "Weekend at Bernie's III".

Yeah, I was surprised to find there was already a part 2, too. What the hell, man?

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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