The impact of news on company stocks

In November 2017, the Japanese company SoftBank decided to buy a 14% stake in Uber for $ 6 billion. This means that the company is currently estimated at $ 43 billion, although a year ago its estimate was $ 70 billion.
The assessment of Uber is influenced by scandals that constantly emerge in the press. That company is caught in surveillance of journalists, then 57 million users will leak into the network.

Uber is a non-public company, its shares are not sold on the market. But the example of Uber clearly shows how the news is related to the price of any company: public and non-public.

- The higher the price - the richer the owners
The value of the stake in the company motivates investors, owners and managers to work with greater efficiency. When a company hires top managers, it often ties their premium to the stock price.

- Below price - more convenient for buyers
Buyers of shares and stocks want to save money and wait for bad news to enter. When the stock price falls, the company becomes vulnerable to unfriendly takeover

- The market is afraid of ships
A large company is struggling even with small investigations. When it was discovered in 2015 that Volkswagen cars underestimated environmental emissions during the tests, the company had fallen in price from € 120 billion to € 45 billion for six months - and in two years only recovered to € 70 billion.

- The market is illogical
The smaller part of specialists in the stock market acts on the basis of their knowledge and experience and is more accurate (and gets more profit).