"The Wall Street Journal reports that Google News crawled an obscure reprint of an article from 2002 when United Airlines was on the brink of bankruptcy. United Airlines has since recovered but due to a missing dateline, Google News ran the story as today's news. The story was then picked up by other news aggregators and eventually headlined as a news flash on Bloomberg. This triggered automated trading programs to dump UAL, cratering the stock from $12 to $3 and evaporating 1.14 billion dollars (nearly United's total market cap today) in shareholder wealth. The stock recovered within the day to $10 and is now trading at $9.62, a market cap of $300M less than before Google ran the story."
Wednesday, September 10, 2008
Tuesday, September 09, 2008
Monday, September 08, 2008
The latest issue of the IACAP Newsletter is now available online, on the IACAP website, together with the previous issues: http://www.ia-cap.org/newsletter.php
If you wish to download just the new issue, you may click on the title of this blog.
Posted by Luciano Floridi at 18:57