Google News Aggregator Causes $1.14 billion loss

deeply concerning post, courtesy of slashdot.org.

Google News erroneously reprinted an old article from 2002 concerning United Airlines, which faced deep financial problems at the time. This caused a run on its NASDAQ-listed stock UAL, leading to its share price falling from $12 to $3, after which the stock was suspended from trading. This caused a drop in its market capitalisation of $1.14 billion. The stock has since recovered to over $10, but its market capitalisation is still down over $300 million from before the old article was published.

Google News regularly searches and indexes online news sites around the world. In turn, many other online news sites grab headline from Google News. The automated nature of this process provides many opportunities for false information to be widely disseminated.

With the growth of Social Bookmarking sites and News Aggregators, people wishing to manipulate the market, or spread any kind of propaganda now have a very powerful tool at their disposal.

  • Subscribe by Email

    Enter your email address:

    Delivered by FeedBurner

css.php
  • Most Viewed
  • Recent Comments
    • herestrouble: A few days ago, the Reserve Bank of Australia’s deputy governor Dr Philip Lowe gave a talk where...
    • ha: Yeah because we all know that the best people are those motivated by who can offer the most $$ right? People who...
    • herestrouble: Just as I thought – “US Feared Pakistan Might Alert Bin Laden” –...
    • herestrouble: News update – In compensation for this outage, Skype gave me $1 in online credit, and a 7-day...
    • teleburst: Funny thing is there pardner – if you compare menu prices in Sydney and here in the States,...
  • Recent Posts
  • Archives