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I'm a novice and was watching Adobe (ADBE) after hours. It closed at $570.45 and dropped in after hours on earnings news. It then traded sort of even until just one big spike and then back down. Help me understand why a buyer would buy at $570 when it has been trading at $514 and then falls back to $514. Or is there some other mechanism at play?

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AbraCadaver
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    @littleadv I think my dupe is more relevant that yours, as this looks more like a data glitch than actual volatility. – nanoman Mar 14 '24 at 23:09
  • Yeah, makes sense – littleadv Mar 14 '24 at 23:10
  • @nanoman Doesn't appear to be a glitch as I refresh multiple times and it's been 2 hours. It's still there and there is a small one for TSLA today as well (only about $3). – AbraCadaver Mar 14 '24 at 23:11
  • @littleadv Not sure if it explains it. I understand liquidity and volatility, but that would mean the stock was trading at $514 and the only sell order was $570 and someone took it. Mistake on their part? – AbraCadaver Mar 14 '24 at 23:16
  • Erratic prices during the pre-market and after hours can occur due to a fat fingered trade. However, it's improbable that this was the case here ADBE is a liquid large cap stock and does not have $55 wide bid/ask spreads during after hours. This was surely a bad data entry. To the OP, if you post the time of the price spike, I'll check Time & Sales tomorrow, assuming that you don't have access to it. – Bob Baerker Mar 15 '24 at 02:39
  • @AbraCadaver - When ADBE was trading in the $510 area, the B/A spread would have been at most, a few dollars, and likely, less than a dollar. Probably 10,000s of shares trading after the earnings release. A buy order for $570 would be filled at the ask price circa $510. – Bob Baerker Mar 15 '24 at 02:48
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    @AbraCadaver "Doesn't appear to be a glitch as I refresh multiple times" If the glitch was in the source data for whatever site you're looking at, it would persist browser refreshes. – TripeHound Mar 15 '24 at 07:37
  • Thanks @BobBaerker 3/14 17:37 – AbraCadaver Mar 15 '24 at 15:43
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    @AbraCadaver - I looked at Time and Sales on Interactive Brokers. Between 17:35.00 and 17:40.00 on 3/14, there were no trades anywhere near $570. The NBBO bid was in the vicinity of $515 for that entire time period as well. – Bob Baerker Mar 15 '24 at 20:13

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