Apple stock experiences mini ‘flash crash’

“At around 1:45 pm EST today (Thursday) Apple (AAPL) experienced a mini-flash crash where the stock briefly went into complete free-fall before immediately recovering half of its losses,” Andy Zaky reports via Seeking Alpha. “From high to low, the stock lost $10 in 20 minutes and saw big gap downs from $352.50 to $348.00 ($4.50) over a 1-2 minute period of time.”

AAPL mini flash crash
AAPL 'mini flash crash' - Feb. 10, 2011

“I watched the May flash crash live and can attest that this sell-off was extraordinarily similar in nature to the May sell-off,” Zaky reports. “My initial reaction to this disorderly sell-off was that Steve Jobs must have gotten hit by a bus without a stock halt. Later it was discovered that the selling pressure was attributed to reports of thin crowds in Verizon (VZ) stores during the iPhone launch.”

Zaky reports, “Yet, whatever the reason for sell-off I can attest that the sell-pressure was entirely disorderly. It seems that we still have issues with specialists being unable to keep things afloat ahead of huge orders in the market. The volume spike was enormous as millions upon millions of shares were sold in the scope of 15 minutes.”

Read more in the full article here.

MacDailyNews Take: Somebody made some cash today and something’s still broken, SEC.

[Thanks to MacDailyNews reader “Fred Mertz” for the heads up.]

13 Comments

  1. 10$ isn’t a very big drop from a % point basis.

    Now if they split the stock 3-1, and it had gone down 10$ everyone who was dying for a split would be crying to their mommies right now.

  2. @ 24January1984… It still amazes me why anyone would put a “stop loss” order on a stock that you plan to hold long term. Based on your decision to buy “it right back”, I can only assume that I’m right about holding it long term.

  3. Perhaps the drop in share price has something to do with less than amazing iphone sale at VZ? i just came from the local store in boston and was told that they only sold 2 iphones today. I know a lot of people pre-ordered but this is still a low number. I am becoming more and more convinced that all the folks who wanted to buy an iphone already switched to att and the rest of the folks could buy one but they are not going to rush to store for it.

  4. Thank you for your uninformed speculation arrived at by anatomic extraction. If your analysis is similar to that of Wall $treet, may God have mercy on our souls.

    I suspect that the actual Verizon iPhone sales are much higher than the speculation, particularly because of the online orders. Those are lines you can’t see.

  5. Sales are likely better than the uninformed speculation. But significant pre-sales and frigid weather took the edge off of the lines for the Verizon iPhone 4 launch.

    Folks, it isn’t going to be like the Superbowl every time Apple releases a product, particularly when the product is just a derivative design for another carrier. Lighten up, enjoy Apple’s tremendous string of successes, and look forward to even more insanely great products in the future. One thing is certain, Cupertino still has a lot of surprises left in the bag.

  6. Whatever happened to the safeguards that were installed to prevent such “mini”-crashes to reoccur?
    Mini becomes maxi if there is any other negative news whatever, such as a butterfly suddenly weighing down on a tree branch.

    Something is very wrong with the stock market mechanisms if crashes can just fall out of the blue.

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