Price glitch leaves tech giants stocks fixed at USD123.47
In after-hours trading on the eve of the US Independence Day, a stock market data error set major tech companies like Apple, Google and Amazon listed on the Nasdaq exchange to the same share price of $123.47 late on Monday, that saw Amazon going down 87% and Facebook game maker Zynga up a massive 3,292%.
 
As a result of the glitch, which Nasdaq said was caused by "faulty test data being improperly disseminated by third-party vendors", several stocks briefly showed their price to be USD123.47. 
 
Prices on Nasdaq's official website appeared unaltered but the issue was replicated across financial data services including Bloomberg, Thomson Reuters, Google Finance and Yahoo Finance which displayed the incorrect price change, Financial Times reported on Tuesday.
 
The glitch made Apple appear down by 14.3%.
 
Nasdaq said the glitch did not affect any market trading, including after hours. 
 
However, traders in Hong Kong were quoted as saying they saw a handful of trades reported at those prices, although many deals were subsequently cancelled.
 
At the USD123.47 price, Microsoft jumped 79.1%, which would value the company at nearly USD1 trillion.
 
For tech giant Amazon which had an opening price of USD972.79 a share, the error had a catastrophic effect on the appearance of its market cap while other companies like struggling Facebook game maker Zynga saw their stock price soaring by a massive 3,292%. 
 
If the declines had actually occurred, it would have knocked USD104 billion off the market value of Apple, the world's most valuable stock. Amazon's market cap would have dropped USD396 billion, the report added.
 
In a statement to the Financial Times, Nasdaq said the culprit was "improper use of test data" that was picked up by third party financial data providers. The exchange said it was "working with third party vendors to resolve this matter."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
pradip
4 years ago
Makes amusing reading. But there's lesson to be learnt. Improper use of test data or whatever should be studied by all concerned. Next time or mar not be harmless. It can cause unprecedented upheaval and redistribution of wealth across investors. In fact FAR, failure analysis report and remedial measures be shared with all. So it doesn't repeat.
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