Dated, disputed rumor of Tim Cook joining HP affects Apple stock
A two-week-old rumor that Apple Chief Operating Officer Tim Cook could leave for rival HP caused concern among shareholders on Wall Street Tuesday.
Shares of AAPL dropped nearly 6 percent to start Tuesday, as a rumor that Cook would leave to become the new chief executive of HP gained traction. But as noted by Fortune, the rumor is not new at all -- it's two weeks old.
By Tuesday afternoon, shares of AAPL slightly recovered, but not entirely. HP was up nearly 1 percent.
Numerous sites reported the Cook-to-HP rumor on Tuesday, but Apple's public relations department declined to comment on the matter. However, Cook reportedly had coffee Tuesday morning with Brian Marshall of Gleacher & Co., and used the opportunity to dispel the rumor.
"Tim Cook will not be going to HP," Marshall told Barron's. "He loves Apple."
Cook was instrumental in Apple's success when CEO Steve Jobs took a leave of absence for health reasons in 2009 .Cook assumed the role of interim Apple CEO from January to June of 2009 so that Jobs could recover from liver transplant surgery.
Cook's tenure had him oversee the successful launches of several key products, most notably the iPhone 3GS. For his work, Cook was rewarded by Apple this year with a $22 million bonus.
Reports of Cook leaving are nothing new, as, in 2009, it was reported that Dell and Motorola tried to hire him away from Apple.
It's widely expressed amongst Apple circles that Cook has long been groomed to succeed Jobs in leading the company should the co-founder ever have to step down.
Shares of AAPL dropped nearly 6 percent to start Tuesday, as a rumor that Cook would leave to become the new chief executive of HP gained traction. But as noted by Fortune, the rumor is not new at all -- it's two weeks old.
By Tuesday afternoon, shares of AAPL slightly recovered, but not entirely. HP was up nearly 1 percent.
Numerous sites reported the Cook-to-HP rumor on Tuesday, but Apple's public relations department declined to comment on the matter. However, Cook reportedly had coffee Tuesday morning with Brian Marshall of Gleacher & Co., and used the opportunity to dispel the rumor.
"Tim Cook will not be going to HP," Marshall told Barron's. "He loves Apple."
Cook was instrumental in Apple's success when CEO Steve Jobs took a leave of absence for health reasons in 2009 .Cook assumed the role of interim Apple CEO from January to June of 2009 so that Jobs could recover from liver transplant surgery.
Cook's tenure had him oversee the successful launches of several key products, most notably the iPhone 3GS. For his work, Cook was rewarded by Apple this year with a $22 million bonus.
Reports of Cook leaving are nothing new, as, in 2009, it was reported that Dell and Motorola tried to hire him away from Apple.
It's widely expressed amongst Apple circles that Cook has long been groomed to succeed Jobs in leading the company should the co-founder ever have to step down.
Comments
if the movie wall street is in any way reflective of the truth, it wouldn't surprise me if apple's competitors started this.
It's perfectly reasonable for HP to at least try for Cook. Why wouldn't they? I doubt the rumor was malicious, when you've got a major corporation in the midst of a very public headhunting campaign.
But that's OK. Anyone with a short position on AAPL is in trouble.
@SockRolid,
AAPL is one the most heavily manipulated stocks
Yeah it is. If you haven't seen or don't remember...
Stewart slams Cramer with Apple video
A two-week-old rumor that Apple Chief Operating Officer Tim Cook could leave for rival HP caused concern among shareholders on Wall Street Tuesday.
this stuff cracks me up. how do you know that the rumour is the cause of the drop? appl has been trading at all-time highs. maybe it's some profit takers? or maybe the announcement of the rim tablet? or maybe the high temperatures in the area? did you analyze the day's trade data? how do you know what you know?
if the movie wall street is in any way reflective of the truth, it wouldn't surprise me if apple's competitors started this.
IMO more likely a stock broker started it. Nothing worse for them to have a stock too steady in one direction.
Brokers are just selfish buggars.
In other news, Steve Jobs is quitting Apple to run HP, citing "low pay" and a "creatively stifling atmosphere" as the main reasons for leaving.
@SockRolid,
Yeah it is. If you haven't seen or don't remember...
Stewart slams Cramer with Apple video
Wouldn't be so easy to manipulate if Journalists actually reported news instead of all the non-confirmed garbage. Might as well call themselves gossip organizations instead of news organizations.
It would be foolish to leave for HP, a company hedging it's bets on multi-touch printer tablets (wtf?)... Cook is no fool.
In other news, Steve Jobs is quitting Apple to run HP, citing "low pay" and a "creatively stifling atmosphere" as the main reasons for leaving.
If only it were true. Put HP in the walled garden and let OSX be free.
Wouldn't be so easy to manipulate if Journalists actually reported news instead of all the non-confirmed garbage. Might as well call themselves gossip organizations instead of news organizations.
Another way to look at it is that people like Cramer aren't really even journalists. They're fairly transparent con artists who entertainment companies like CNBC put on the air because they know that there are a bunch of idiots out there who will watch this stuff. I can visualize the typical viewer -- white male, aged 50-70, slightly above average income, who has deluded himself into thinking that he can get rich quick because he's got the "inside scoop" from Jim Cramer. No doubt he supports a Tea Party candidate, because he doesn't want to pay capital gains taxes on all the money he's going to make when Cramer's hot stock tips pay off big-time.
People are always happy to pay for the fantasy of being rich.
Another way to look at it is that people like Cramer aren't really even journalists. They're fairly transparent con artists who entertainment companies like CNBC put on the air because they know that there are a bunch of idiots out there who will watch this stuff. I can visualize the typical viewer -- white male, aged 50-70, slightly above average income, who has deluded himself into thinking that he can get rich quick because he's got the "inside scoop" from Jim Cramer. No doubt he supports a Tea Party candidate, because he doesn't want to pay capital gains taxes on all the money he's going to make when Cramer's hot stock tips pay off big-time.
People are always happy to pay for the fantasy of being rich.
Capital gains taxes, like you mean the huge taxes you pay when you sell your house for more than you bought it for. The increase in value being artificial and the result of inflation caused by the federal reserve policies, encouraged by a government spending far more than it can afford. Until of course it all goes bust and 15%+ (true unemployment since those who no longer get benefits aren't counted) of the country has no jobs and are losing said homes.
AAPL is one the most heavily manipulated stocks. I thought this kind of thing only happened before major announcements. As in "buy on the rumor, sell on the news"...
But that's OK. Anyone with a short position on AAPL is in trouble.
Anyone who buys or sells on rumors gets exactly what they deserve. Too bad it didn't dip more, would have been a good tine to pick up some shares!
Anyone who buys or sells on rumors gets exactly what they deserve. Too bad it didn't dip more, would have been a good tine to pick up some shares!
so you were going to buy on the rumour?
this stuff cracks me up. how do you know that the rumour is the cause of the drop?
Apple has a week plus of increases and then the same day that all the blogs jump onto this rumor and publish it with the appearance of fact, the stock drops $4 and $4 the next day.
AND HP goes up (albeit at a smaller rate)
I doubt it was caused by the record high temps in Cali.
this stuff cracks me up. how do you know that the rumour is the cause of the drop? appl has been trading at all-time highs. maybe it's some profit takers? or maybe the announcement of the rim tablet? or maybe the high temperatures in the area? did you analyze the day's trade data? how do you know what you know?
Every market move must have an explanation. Even a far-fetched explanation sounds more plausible (to some) than saying that it happened for no known reason.