Investors erroneously increased their share by 1100% over the past two days of the week, after advancing themselves when they saw a tweet from Elon Musk.
What happened: The Tesla Ing (NASDAQ: TSLA) founder and CEO Thursday tweeted a message of support for the encrypted messaging app Signal, which encourages people to sign up. Later that day, the shares of another company called Signal shot up.
The over-the-counter Signal Advance company raised its shares by 527% on the first day and 91% again on Friday. The price rose from 60 cents to $ 7.19, for a total rise of just under 1100%.
The encrypted messaging app Musk tweeted about is not run by a public company, but a non-profit organization run solely on donations. It issued a statement on December 8 to clear up the confusion.
‘It’s understandable that people want to invest in Signal’s record growth, but it’s 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 gives mixed signals?
It’s understandable that people want to invest in Signal’s record growth, but it’s not us. We are an independent 501c3 and our only investment is in your privacy. pic.twitter.com/9EgMUZiEZf
– Sein (@signalapp) 8 January 2021
A similar thing happened with Zoom stock on the day it became known. Due to the high expectation that the video conferencing platform will reveal, traders mistakenly bought shares of a Chinese company called Zoom Technologies Inc (OTC: ZTNO), instead of the more well-known Zoom Video Communications Inc. (NASDAQ: ZM). The Chinese company’s shares rose 80% in two hours of trading that day.
Why it matters: Interest in new messaging applications has increased recently Facebook Inc. (NASDAQ: FB) messenger WhatApp has announced that it will change its privacy policy and share users’ data, including phone numbers, with the parent company.
This is a mandatory policy that all users must agree to by February 8, otherwise they will lose access to the program.
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