Elon Musk, CEO of Tesla, stands at the construction site of the Tesla Gigafactory plant. In Grünheide near Berlin, September 3, 2020.
Patrick Balloll | Image Alliance | Getty Images
When Tesla CEO Elon Musk On Thursday, he urged his Twitter followers to “use Signal,” which is the encrypted messaging app. Some people seem to have taken it the wrong way.
Shares of a shadowy and unrelated company called Signal Advance, which is trading out of the exchange, surged 527% on Thursday and another 91% on Friday, jumping from 60 cents to $ 7.19.
The sign Musk was referring to is triggered by a nonprofit and serves as an alternative to texting apps like Facebook Messenger, WhatsApp, and Apple’s messaging service. This Signal took to Twitter on Friday to clarify that it had nothing to do with Signal Advance.
Signal writes, “It is understandable that people want to invest in Signal’s record growth, but that’s not us.” “We are a standalone 501c3 and our only investment is in your privacy.”
It is a familiar issue on Wall Street.
In April 2019, the day Zoom Video Communications held its highly anticipated market debut under the ticker symbol ZM, a Chinese company with the name Zoom techniques It jumped over 80% in two hours of trading. The stock gave up most of those gains that day, closing up 10%.
Six years ago, while investors were waiting for the initial public offering on Twitter, Tweeter Home Entertainment Group shares Rose more than 1,000%.
Signal Advance was founded in Texas under the name Biodyne in 1992 and has catered to medical and legal professionals. The company shifted its focus to using technology in healthcare and changed its name to Signal Advance. The poorly traded stock hit the market in 2014.
Signal Advance is so young that it does not report financials with SEC. As of March 2019, it did not have full-time employees other than CEO Chris Hemel, who did not immediately respond to a request for comment.
Due to unintended investor interest, the company now has a market capitalization of $ 660 million, up from $ 55 million two days ago. Prior to Thursday, the stock had traded for less than $ 1 since 2015.
The Signal messaging app, backed by the Signal Technology Foundation, is “entirely on donations,” according to A. The New Yorker Article published in October.
The group had further concerns after Musk tweeted to more than 41 million followers. Signal said Thursday that there are technical issues with the verifications because “a lot of new people are trying to join.”
Technical confusion and the wild trading of unrelated stocks both underscore Musk’s growing influence. On Thursday, he became the richest person in the world thanks to Tesla’s market value increasing nearly 800% over the past year. On Friday, Tesla It became the fifth most expensive Public company in the US, overtaking Facebook.