Stock Price of Company with Same Name Soars 65 Times on Musk's Single Comment

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] A stock price of a company with the same name as the messenger application mentioned by Elon Musk, CEO of Tesla, on Twitter surged 438% in a single day on the 11th (local time) due to investors' misunderstanding.

According to CNBC on the day, Musk tweeted on the 7th, "Use Signal."

This meant to use Signal instead of WhatsApp, Facebook's messenger app, which announced changes to its privacy policy and terms of use, but some investors bought shares of Signal Advance, a device manufacturer with the same name only, causing this incident.

Accordingly, Signal Advance's stock closed at $38.70 on the New York over-the-counter (OTC) market that day.

Considering that the company's stock price was 60 cents on the 6th, before Musk's tweet, it surged 65 times.

In particular, the stock price rose to as high as $70.85 during the trading session on the 11th.

Trading volume also surged.

Signal Advance had no trades on the OTC market on the 4th, but more than 2.32 million shares were traded in a single day on the 11th.

CNBC reported that in 2019, investors also mistakenly bought large amounts of Zoom Technologies stock, whose ticker symbol is 'ZOOM,' confusing it with Zoom Video Communications (abbreviated ZM), the operator of the video conferencing service 'Zoom.'

Meanwhile, Musk said in a tweet on the 10th that he plans to donate more to Signal, an encrypted messenger app operated with funding from a nonprofit organization.

This content was produced with the assistance of AI translation services.