Originally posted by: otispunkmeyer
arent stock prices kinda based on how people percieve the company?
like all the bad press apple got over some dodgey accounting practice and stocks went down, jobs opens his trap about dropping DRM and now theyre going back up?
But those items go into models and other perceptions. Accounting practices could have lead to massive restatements, write-down of stockholder equity, future sanctions...etc. Also, a lot more risk. More risk means more repricing of future gains = future gains are worth less = stock goes down.
As far as DRM, that'll aid in the proliferation of Ipods, in many people's eyes, leading to more revenue = stock price goes up.