Investors mistakenly drove up a stock 1100% during the last two days of the week’s trading, after getting ahead of themselves when they saw a tweet from Elon Musk.
What happened: The Tesla Inc. (NASDAQ: TSLA) founder and CEO on Thursday tweeted a message in support of the encrypted messaging app Signal, urging people to sign up. Later that day, the shares in another company called Signal shot up.
The company Signal Advance, which trades without a prescription, saw shares rise by 527% on the first day, and then a further 91% on Friday. The price increased from 60 cents to $ 7.19, for a total increase of just under 1
The encrypted messaging app Musk tweeted about is not managed by a public company, but a non-profit organization that is only run on donations. It issued a statement on December 8 to remove the confusion.
“It is understandable that people will invest in Signal’s record growth, but this is not us. We are an independent 501c3 and our only investment is in your privacy, “said the non-profit organization.
Is this what stock analysts mean when they say that the market is giving mixed signals?
It is understandable that people will invest in Signal’s record growth, but this is not us. We are an independent 501c3, and our only investment is in your privacy. pic.twitter.com/9EgMUZiEZf
– Signal (@signalapp) January 8, 2021
A similar thing happened to the Zoom stock on the day it was announced. Due to high expectations that the video conferencing platform would go public, traders mistakenly bought shares in a Chinese company called Zoom Technologies Inc (OTC: ZTNO), instead of the more well-known Zoom Video Communications Inc. (NASDAQ: ZM). The shares of the Chinese company increased by 80% in two hours of trading that day.
This is a mandatory policy that all users must accept by February 8, otherwise they will lose access to the app.
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