Elon Musks tweet about Signal boosts shares of the wrong company – Quartz

Such is the power of Elon Musk that one tweet can send the shares of a stock soaring. Even of the incorrect company.Shares of Signal Advance increased after the Tesla CEO tweeted “Use Signal” early on Jan. 7. Musk most likely implied Signal, the encrypted messaging service and app. It was developed by a non-profit, the Signal Foundation, and is not an openly traded company.Investors and fans of the South African billionaire quickly bought shares of Signal Advance instead, an innovation element making business headquartered in Rosharon, Texas which trades under the ticker SIGL on over the counter markets but has no relationship to the messaging app or Musk himself.Prior to Musks tweet, shares of Signal Advance had not climbed up above 60 cents. Due practically totally to investor signals being crossed (sorry), the stock closed at $3.76 on Jan. 7, and $7.19 on Jan. 8. Momentum accelerated even additional the other day, pushing the closing cost to $38.70, a boost of 6350% over three trading sessions. (It has returned to earth a bit this afternoon, and was trading around $12 at the time of publication.)The incorrect trades still increased the existing worth of Signal Advance. It is so little it didnt need to send financial info to the SEC for 2020. In December 2019, it taped no revenues and a bottom line of $125,400, but is now worth more than $3.5 billion, according to Factset.Investors pouring cash into the incorrect company likewise occurred early in 2015, when shares of Zoom Technologies climbed up due to comparable confusion following positive news about the remote conferencing service business, Zoom Video Communications. In March, shares of the Chinese holding business, which trades with the ticker symbol ZOOM, soared from $1.10 to an intraday high of $60. Zoom Video Communications trades as ZM on NASDAQ.

Leave a Reply

Your email address will not be published. Required fields are marked *