The share prices of Twitter Inc (NYSE:TWTR) plunged 26% after NASDAQ leaked its financial results accidently. As per reports from FT.com, NASDAQ published Twitter’s results early in the day showing that the social media giant had missed the market expectations concerning revenue, thus, lowered its quarterly and yearly guidance.
How It Happened
The 26% reduction within a day wiped off $6.1 billion from the market capitalization of the company. It became the victim of its own distribution when an independent data gathering company named Selerity found its financial results on company’s investor’s relation page. Selerity twitted all the figures instantly with a hashtag ‘BREAKING.’ As per the reports, the financial results were posted on the official website of Twitter by Shareholder.com services of NASDAQ.
The leakage of results has hit hard Twitter in terms of financial loss and to NASDAQ in terms of market image. It’s the second instance within a period of six months when shareholder.com has leaked earnings of a company. Previously, it released the quarterly financial results of JP Morgan before the scheduled announcement time. It had out a bad impact on company’s earnings.
On Tuesday morning, shares of Twitter were trading just below 1% of the previous close. As soon as the financial results were leaked, they came down to 6% before the trading was stopped. They continued falling and dropped by as much as 26% to touch $42.27 mark. The situation became worse in after-hours trading as the stock prices fell to $41.60.
As soon as the news spread, NASDAQ had to come up with an explanation. It stated in an official statement that the inadvertent release of their earnings led to a mass drop. The company is trying to figure out the root cause of the problem. It also clarified that no other client of shareholder.com was affected by this issue.