New Rumors Hurt $GTAT
Investors in $GTAT learned today that the rumor mill works both ways. After soaring yesterday on whispers of an iPhone deal, GT Advanced Technologies dropped more than 6% on rumors that its product would actually be used in an iPhone watch.
The iWatch story — first printed by gforgames.com and reprinted by the well-known AppleInsider.com site —stems from chatter on Chinese-language Web sites that Apple rejected GTAT’s sapphire glass product for its iPhone displays because the product would substantially increase the handset cost. Instead, Apple is opting to use the glass on the 2-inch display of its iWatch, according to the unconfirmed reports.
$GTAT had spiked 8% Monday on a blog report suggesting that Apple would use the company’s sapphire glass product in upcoming iPhones. The site, 9to5mac.com, indicated that $GTAT would manufacture between 100 million to 200 million iPhones at a Mesa, Arizona plant.( http://stks.co/syKk)
Cashtaggers debated today which source to believe. Some StockTwits users argued that 9to5mac was more likely to publish correct information than unnamed Chinese Web sites, the initial source of the rumors.
Feb. 11 at 2:45 PM
Others argued the story was part of a short-seller conspiracy to erase Monday’s gains with erroneous bad news.
Feb. 11 at 12:50 PM
Apple did not weigh in on either story. The consumer technology giant is known for secrecy surrounding component suppliers.
The truth may have to wait until $GTAT’s earnings on Feb. 24, before the open.
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