Business Insider thought to ask CNBC if they planned on apologizing for the network's epic snafu on Friday, when reporter Jim Goldman misreported Microsoft's announced expense reductions as revenue reductions, news that "bombed" the NASDAQ. Guess what? Nope.
On Friday morning, Goldman announced on CNBC's air that Microsoft was reducing its revenue guidance by $200,000,000. Because sophisticated investors know that means that Microsoft was making less money, they dumped the stock—volume spiked instantly from 1.3 million shares traded to 6.9 million, and the price dropped by about 1%. In the words of the network's own Mark Haines, "the Microsoft news just bombed the NASDAQ." The rapid drop on the left-hand side of this chart of Microsoft's performance Friday just before 11 a.m. coincides with Goldman's announcement.
Unfortunately, he got it precisely backward: Microsoft was cutting its operating expenses by $200,000,000. Goldman never corrected or apologized for the error, though he did offer a "clarification" shortly after and reported the guidance accurately in order to "make sure we all understand." Business Insider asked CNBC if that was it, or if an apology was in order:
Given the damage the report caused, we were surprised by this. We asked CNBC whether it planned to issue an apology. The answer was no. The network rep said, simply, "We corrected [the mistake] on air."
Frankly, we share CNBC's contempt for its audience. If you're stupid enough to spend money based on what CNBC says, you deserve to lose it. On the other hand, there's a killing to be made in CNBC fuck-up arbitrage.