Ah, The Old Press Release Hoax Is Back

from the The-Wire dept

Among the artifacts of the last bubble that we’ve seen re-emerge of late is the phony exaggerated press release, designed to create an artificial pop in a company’s stock price. At least we thought that investors weren’t so gullible any more. Turns out, investors are still very susceptible to hype, as one company recently found out when a third party put out a false release saying it had signed a deal with a major company. By the time the company realized someone had put out a false report on them, their stock had already doubled. Perhaps investors can’t be blamed; after all, the press release looked legitimate, and had the deal been true, it would’ve been significant. This event seems reminiscent of when a fake press release was put out, claiming to be a warning from storage maker Emulex, back in August, 2000. That incident briefly knocked $2.5 billion off of the company’s market cap. That’s another big difference between now and then; the amounts we’re talking about with these things are much smaller.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Ah, The Old Press Release Hoax Is Back”

Subscribe: RSS Leave a comment
PhysicsGuy says:

At least, we thought, that investors weren’t so gullible any more. Turns out, investors are still very susceptible to hype

there have been plenty of psychological studies that show 2/3 of people are essentially sheep. don’t let it come as a surprise to you that a majority of investors were, are and will continue to be susceptible to hype.

BillDivX says:


Isn’t there a particular specialty in that? I mean, I think there is a subset of psychology that deals with group thought. It does appear to be very true that people, even normally intelligent ones, take on a sheep-like behavior when placed in a large group with even a remotely common goal. I wonder how thoroughly that effect has been studied, and what, if any, percentage of the population seems immune to it.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...