Musk’s Tweet Sent To Orbit Wrong Company’s Stocks

Musk’s Tweet Sent To Orbit Wrong Company’s Stocks

Reading time: 2 min



If you’ve been wondering how one can send the quotations of a small company to space, Elon Musk could tell you. The stocks of Signal Advance grew by 6,350% not without his help. Do you want details? So do we.

What is it all about?

On January 7th, Musk on his Twitter was pretty laconic and unambiguous to recommend using the Signal messenger. A successful businessman is not likely to advise you on something bad, so people not only started to install the app massively but also decided to buy out the stocks of the developer.

On January 6th, the stocks of Signal Advance traded for 0.6 USD, and on the next day, their price rose to 3.76 USD, which is a 526.67% increase. Growth didn’t stop here: on January 11th, the price reached 38.7 USD. This means Musk’s tweet made the stocks leap up by 6,350%.

There’s just one tiny detail: Signal Advance has nothing to do with the messenger. It works in healthcare, while the app for online calls and instant messaging is the creature of Signal Foundation – a company that doesn’t trade in the exchange at all!

When the developer company explained the situation on its Twitter, unfortunate investors hurried to get rid of Signal Advances stocks, dropping its quotations by 74.16% to 10 USD per stock. Their chart now looks like a spire of a Catholic church.

Why is Tesla’s director-general interested in the messenger?

We suppose that the tweet of the world’s richest man fresh from the oven became so popular and topical because of growing general resentment towards WhatsApp. Let me remind you that on January 7th, the online platform updated its terms of use. It’ll now be giving user data to Facebook.

In WhatsApp, they swear that this doesn’t mean violating the privacy of chats. Like, Facebook will just get certain info: users’ phone numbers, IPs, info about transactions, and other types of interaction with legal entities and physical persons. To go on using WhatsApp, one must accept the new terms until February 8th, 2021.

How did the public and the market react?

According to the Sensor Tower analytical platform, from January 6th through 10th, 5.6 million gadgets all over the world got Telegram installed on them. As the Apptopia research company goes, the statistics of Signal turned out even more amazing – 7.5 million downloads. In other words, those who wanted to g on communicating online had little to no trouble finding an alternative to WhatsApp.

As for the market, its reaction to the updated terms of use was also momentarily. From January 6th through 12th, the stocks of Facebook that owns WhatsApp dropped by 6.6%, from 263.3 to 251.1 USD per stock.

Summing up

One twit, and the quotations of Signal Advance sky-rocketed by 6,350%. The company’s capitalization rose from 55 million to 1.4 billion USD almost overnight. Isn’t it a Christmas miracle?

For good or worse, the story of this random and thus only more impressive growth is neither the first nor the last one. Such situations are so abundant that a separate list of them might be a good decision. Let us know in the comments if you’d like to read a top-5 of such incidents.




We'll cover any topical theme on trading and investing if you find it useful.

Comments

Previous article

IPO Petco Health and Wellness Company: The Pandemic as a Reason to Get a Pet

On December 3rd, 2020, the world’s largest retailer of goods for pets, Petco Health and Wellness, filed for an IPO at Nasdaq. The company will be listed under a “WOOF” ticker. Let’s talk about the secret of the success of Petco Health and Wellness.

Next article

2021: Market Euphoria Continues

Stock indices are trading at their highs, and investors are buying out stocks. Which companies to invest in at the start of 2021? In this article, we will tell you about the companies that might go on growing in 2021.