A blog entry at Zero Hedge suggests that a deliberate share dump in the final second of trading may have been partly responsible for yet another drop in Apple's share price on Friday.

flashdump
Zero Hedge cites several Nanex charts as evidence, observing that some 800,000 shares worth $350 million were traded in the final seconds of trading on Friday.

Unlike traditional flash crashes where the trade is an HFT [high-frequency trading] error, or a few shares traded through the entire bid or offer stack, in this case it looks like a very premeditated unloading of some 800K shares (some $350 million worth) of AAPL in the last second, with the full knowledge it [would] shake the market.

The move brought Apple's stock price down by approximately $5 in the waning seconds of the week's trading, where it sat throughout much of the after-hours trading period leading into the reopening of regular trading this morning. Apple's stock is down another $3.50 as trading opens today.

Top Rated Comments

JaySoul Avatar
145 months ago
Didn't Apple already dump Flash?
Score: 29 Votes (Like | Disagree)
johncrab Avatar
145 months ago
Apple is just Wall Street's latest cash cow. Here is how it works:

Big institutional investors get together in back rooms and choose companies they know are really solid and have profit in their future. They set irrationally high quarterly numbers or claim a company "did not exceed expectations by enough". They start a plunge by selling short a large block of shares to create panic. Then other companies and individuals panic (predictably) and dump their shares thinking the sky is falling. The share price plunges.

When the damage has been done and a share price has been devalued 20-30%, the big investors start buying back those shares. Momentum builds and drives the price back where it was and they make billions as the price rises, more than offsetting the short sell they used to start this march of the lemmings.

I watched Wall St do this to GE at 8 month intervals in the late 80's, working a 10 point drop then rise. GE killed this with repurchase programs but the same thing has happened to HP and Microsoft and other companies. It is extremely predictable once it starts but only the fat cats make the real money, basically by defrauding smaller investors by making them panic.
Score: 17 Votes (Like | Disagree)
hovscorpion12 Avatar
145 months ago
This move is called shorting the stock. get owners scared, sell. Once the price gets to a designated spot, start buying again. Its extremely risky, but making making money on loss, priceless. Apple's stock is going to continue to fall to cover the gap. Apple could go bellow 400.00 by February. Apple is in trouble if it doesn not fix it this year. Apple can easily retake the market with a revampt IOS 7, iPhone, iPad and a new "special product."
Score: 14 Votes (Like | Disagree)
WhoDaKat Avatar
145 months ago
Some people need to do some research on High Frequency Trading. This isn't some investor, this is a huge faceless corporation purposefully trying to tank Apple's stock. Just wait. I've got a $1 that says Google is behind this.
Score: 9 Votes (Like | Disagree)
extricated Avatar
145 months ago
This move is called shorting the stock.

I up-voted your comment - not because I liked it, but because you nailed it.
Many people don't realize the type of "artificial" manipulation of the market that shareholders can weild.

I heard again on the news today about how Apple stock tanked last week because they fell short of analyst's predicted earnings - albeit with another record-breaking quarter?
Score: 9 Votes (Like | Disagree)
tatonka Avatar
145 months ago
It sure is time that this high frequency trading is somewhat regulated on a global level. After the 2008 crash, the banks are back up on top gambling with our money again, while average people are still suffering from the crisis. This sort of stock trading has nothing to do with evaluating the value of a company or its chances to prevail, it is simply playing odds of quickly shifting very large amounts of money forth and back.
Score: 7 Votes (Like | Disagree)

Popular Stories

iOS 17

10 New Things Your iPhone Can Do in Next Week's iOS 17.4 Update

Friday March 1, 2024 1:30 am PST by
Apple will this month release iOS 17.4, its biggest iPhone software update of the year so far, featuring a number of features and changes that users have been anticipating for quite a while. Below, we've listed 10 new things that your iPhone will be able to do after you've installed the update, which is projected to arrive by March 7. When the day arrives, be sure to check Settings ➝...
Apple Maps vs Google Maps Feature

Apple Maps vs. Google Maps: Which Is Better?

Friday March 1, 2024 7:10 am PST by
Apple Maps has been providing navigational guidance to Apple users for almost 13 and a half years now, and much has changed about the app in that time. However, according to data from Canalys, the overwhelming majority of iPhones in the U.S. still have Google Maps downloaded as an alternative to Apple Maps, which comes preinstalled on all iPhones. We want to hear from MacRumors readers. Which do...
Google maps feaure

Google Maps Finally Rolls Out Glanceable Directions

Wednesday February 28, 2024 2:07 am PST by
After more than a year since announcing the feature, Google Maps is finally rolling out glanceable directions on Android and iOS (via Android Police). The feature allows users to view turn-by-turn directions and a live ETA directly from their device's lock screen – information that was previously only visible when a phone was unlocked. Glanceable directions also work on the app's route...
apple tv plus banner

Apple TV+ Gains Over 50 Movies for a Limited Time

Friday March 1, 2024 6:29 am PST by
Apple TV+ today gained over 50 movies, adding to its back catalog of content for a limited time. The collection includes a large number of popular and classic titles. Subscribers can access the movies in a "Great Movies on Apple TV+" section in the Apple TV app. Some titles are also available in 3D. Movies in the collection include: 21 Jump Street 300 American Sniper Argo ...
iOS 18 Mock iPhone 16 Feature Gray

iOS 18 Rumored to Be Compatible With These iPhone Models

Tuesday February 27, 2024 6:31 am PST by
iOS 18 will be compatible with the iPhone XR, and thereby also the iPhone XS and iPhone XS Max models with the same A12 Bionic chip, according to a post on X today from a private account with a proven track record of sharing build numbers for upcoming iOS updates. The post was spotted by MacRumors contributor Aaron Perris, and it has since been deleted. However, this was likely because the...
M3 MacBook Air Feature

New MacBook Air Models Launching This March: 5 Features to Expect

Wednesday February 28, 2024 1:50 am PST by
The existing 15-inch MacBook Air arrived in June 2023, which is not that long ago in terms of Mac update cycles. However, Apple released the current 13-inch ‌MacBook Air back in June 2022. It is now the oldest Mac in Apple's current crop, having not been updated in 600 days. But rumors suggest that is unlikely to be the case for much longer. According to Bloomberg's Mark Gurman, Apple has...
airpods pro 2 pink

Apple Releases New Beta Firmware for AirPods Pro 2

Thursday February 29, 2024 11:41 am PST by
Apple today introduced a new beta firmware update for the AirPods Pro 2, both the USB-C and Lightning versions. The new firmware is version 6E188, up from the prior 6B34 firmware released in December. Apple does not often provide details or notes on what features might be included in the refreshed firmware, so it is unclear what's new. Note that this software is limited to developers at the...