The company “Signal Advance” saw a huge increase in its share prices after an Elon Musk tweet was misinterpreted by investors. Musk was referring to the Signal Messaging Application rather than the Signal Advance, which surged right after he tweeted.
Following the new privacy policy of WhatsApp, the CEO of Tesla and SpaceX on Thursday tweeted out “use Signal” to his 40 million+ followers, referring to the open-source, end to end encrypted messaging app. Various investors, who follow the world’s richest man, decided to invest in Signal in order to reap early benefits.
However, many people confused Signal with Signal Advance, a Texas-based technology stock. This resulted in the company’s shares soaring from $0.60 to as high as $70.85 on Monday, an increase of 11,708%! The company’s market capitalization rose from $6 million to $300 million, an increase of 4900%, while its shares climbed by 885%.
Incidents like these have happened before, most notably during March, when Zoom Technologies shares soared as people mistook it for Zoom Video Communications.
