Tag Archives: Stock Market

Wall Street Rewired: Apple, Icahn, and the $17 Billion Tweet

“With just two tweets, Carl Icahn raised the value of the Apple empire by $17 billion. That’s $8.5 billion per tweet, and about $62 million per character — including spaces,” writes Cade Metz of Wired.

Indeed, the Securities and Exchange Commission has recently said that companies can use social media to disclose financial information — provided they warn investors that it might happen. Icahn’s investment outfit, Icahn Enterprises, did warn the market, saying — in a notice filed with the SEC a day earlier — that he intended to “use Twitter from time to time to communicate with the public about our company and other issues.”

And even that may not have been necessary. With his Tuesday afternoon tweets, the only thing Icahn revealed about his own company is that it owns some Apple stock. You could argue that such a basic disclosure didn’t require formal notice with the SEC.

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In Netflix Case, a Chance to Re-examine Old Rules

In July of this year the CEO of Netflix, Reed Hastings posted this on his facebook: “Netflix monthly viewing exceeded 1 billion hours for the first time ever in June.”

Since then the S.E.C. has launched a probe to determine if–through this social media post–the video streaming company violated  “the Regulation Fair Disclosure rule, commonly known as Reg FD, which requires a company to announce information that is material to its business to all investors at the same time.”

Steven Davidoff of the New York Times examines the two critical aspects of this case: 1) Is facebook a public space where investors and analysts know to receive information? And 2) Did the post contain material information?

Struggling to keep pace with our modes of information consumption, regulators reveal their outdated framework.

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