Shacknews may have been labeled fake news by Facebook recently, but we always update our stories with the correct information when we make a mistake. It appears that several news outlets mistakenly ran with a story earlier today that Apple, Valve, and LG had invested in the AR OLED display maker eMagin. This was later found out to be false. Fake news, if you will.
eMagin posted the following update to their investor relations website.
It appears that the term "specified investors" was not clearly defined in eMagin's Form S-1 filing with the SEC.
TechCrunch reports that a source very close to Apple has said that the company did not invest in eMagin. eMagin has also clearly denied the rumors, stating that, "As of today, to the Company’s knowledge, none of these consumer electronics companies have taken part in the offering."
What makes this story more interesting is that eMagin's stock skyrocketed nearly 30 percent on this news, only to lose nearly all of the intraday gains once traders figured out that the story was false.
eMagin's stock hit a multi-month high of $2.05/share on the false new reports only to end up the day giving back a lot of its gains. Traders could have made a quick buck, but the company is still down materially from its all-time high of $9.31/share. Today's fake news event highlights the fragile current relationship between the stock market and media. Shareholders of eMagin definitely received a wake-up call today.