Mr. Apple's Wild Ride Fueled by Gnomes, Twitter Chatter
Shares of iPad and iPhone maker Apple (NASDA: AAPL) made a sharp intraday reversal following some curious Twitter chatter from one noted hedge fund manager. After trading below $438 earlier in the session, Apple shares are now trading above $451 after the hedge fund manager took to Twitter to say the company will announce stock split at Wednesday’s shareholder meeting.
“High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow’s shareholder meeting,” the hedge fund manager tweeted
To the manager’s credit, he did disclose via Twitter a long position in Apple, saying he was “mucho long” the stock.
Emphasis on “was.” At 2:30 New York Time, the same hedge fund manager was back on Twitter announcing that he had pared his Apple position.
“The reason why I pared back Apple was that the company would require a shareholder vote to split the stock,” he tweeted.
That explanation was met with vitriol and derision as some members of the StockTwits community accused the hedge fund manager of pumping and dumping Apple shares.
Perhaps even more alarming is that any hedge fund manager played ignorant regarding shareholder approval for a share split. That is not an Apple rule. That is a rule for practically every publicly traded company on the market.
Add to that, brief research of the demographics of the Alps nations – Austria, France, Germany, Italy, Lichtenstein, Slovenia and Switzerland – indicates there no gnomes with the ability to speak or trade stocks inhabiting those countries.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.