Data glitch send share prices completely haywire
During the evening of Monday 3rd June, a huge stock market freak-out arose out of nowhere causing the share prices of Nasdaq companies to either crash or plummet. Nasdaq has multiple different companies listed on its servers, the data glitch sent most of the share prices to $123.47. A statement from Nasdaq claimed the culprit responsible for the glitch was down to “improper use of test data” sent to third party financial data providers that are partnered with Nasdaq. However, Nasdaq has come out and said that they are working like clockwork with the third-party companies to clean up the mess left by this flop and try there best to prevent the issue occurring again.
Looking at some of the companies affected, the data glitch affected a vast number of Giant financial websites and such. Some of the companies included in the share error are Google finance, Bloomberg, Yahoo finance, Amazon as well as Apple Inc. Amazon, who sit on a glorious opening share price of $972.79, were knocked heavily all the way down to share prices of $123.47 which is a drop of 87%! Naturally, this hilarious gaping hole in the prices sent devastating waves through the companies’ market cap.
On the flip side, this freak error did not ruin all of Nasdaq’s helpless company shares. One example is the small and struggling Facebook game producer Zynga. They actually received an increase in their share prices. Zynga went up by over 3,000%, leaving them with the nights all too familiar share price of $123.47 which also put them on par with Amazon and Google finance. So, not a bad day at the office for some, even if for a short time.
A comparison of some of the companies affected (Amazon, Google, Microsoft).
What actually happened?
As I previously mentioned, Nasdaq are attempting to resolve any existing issues and prevent any future occurrence happening. However, what still seems to be a blur is the cause. Nasdaq have said themselves that they were foolishly testing with improper data and sent it round to the companies affected as part of the testing. It’s obvious that there must have been some sort of freakish software failure but Nasdaq suggest that it wasn’t down to them. They claim the Third parties that received the data used it incorrectly and promoted it on their market pages. But if Nasdaq were testing improper data surely the partnered companies would’ve been fully aware of it, so, the error was almost certainly a software error on Nasdaq’s part that has not yet been discovered or admitted.