Twitter results fiasco after Nasdaq 45 second error

selerity

Dick Costolo, Twitter’s CEO said “ the early release of the earnings wasn’t a pleasant experience”.

Nasdaq admitted an operational error lasting 45 seconds was behind the premature release of Twitter’s disappointing results on Tuesday 28th April 2015, as Social media site’s share fell sharply for second day. During those seconds the site was scraped by a third party that publicly spread the earning information. Twitter Shares fell 6 per cent in afternoon trading to below $40, compounding 18 percent drop as the investors learned that the social media site had missed revenue expectations and lowered its guidance. This should not happen as it is bad for the investor and the company. Selerity a obscure New –Jersey based company that trawls the web for market moving information and gathers data for traders, and feeds it to clients including institutional, retail and sellside investors, came under the spotlight after it broadcast Twitter’s first quarter earnings nearly an hour ahead of schedule, sending the messaging platform’s share tumbling.

 

Selerity’s service founded by Ryan Terpstra, is indeed, a valuable service for high-speed traders who can push the data directly in to their automated trading systems. They built a machine-readable quantitative news feed for Thomson Reuters, and is backed by Tom Glocer, the former Thomson Reuters chief executive.