Tech

(ZTNO), Facebook, Inc. (NASDAQ: FB) – Mixed signals: Elon Musk’s tweet about a messaging app sends out people rushing to buy unrelated stocks

(ZTNO), Facebook, Inc.  (NASDAQ: FB) - Mixed signals: Elon Musk's tweet about a messaging app sends out people rushing to buy unrelated stocks

Investors mistakenly surged a share by 1100% during the last two days of the week’s trading, after they got ahead of themselves when they saw a tweet from Elon Musk.

what happened: The Tesla Corporation (Nasdaq: TSLAFounder and CEO on Thursday chirp Letter of support for the encrypted messaging app Signal to encourage people to sign up. Later that day, shares of another company called Signal rose.

That company, Signal Advance, which is traded over the counter, saw its shares rise 527% on the first day, and then another 91% on Friday. The price rose from 60 cents to $ 7.19, an overall increase of just under 1,100%.

The encrypted messaging app that Musk tweets about is not run by a public company, but by a non-profit organization that only works on donations. It issued a statement on December 8th to clarify the confusion.

“Understandably, people want to invest in Signal’s record growth, but that’s not us. We are an independent 501c3 and our only investment is in your privacy,” the nonprofit said.

Something similar to the Zoom stock happened the day it was released to the public. Due to the high anticipation of launching the videoconferencing platform to the public, traders mistakenly bought shares of a Chinese company called Zoom Technologies Inc (OTC: ZTNO), Instead of the most common Zoom Video Communications Inc (Nasdaq: ZM). Shares of the Chinese company were up 80% in two hours of trading that day.

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why does it matter: Interest in new messaging apps has increased recently since then Facebook Inc. (Nasdaq: FBProprietary messaging program WhatApp announced that it is changing its privacy policy and will share user data, including phone numbers, with the parent company.

This is a mandatory policy, all users must agree to it by February 8th, otherwise they will lose access to the app.

© 2021 Benzinga.com. Benzanga does not provide investment advice. All rights reserved.

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