Elon Musk restarted market activity after an early morning tweet.
Musk’s tweets about an Etsy purchase for his dog caused his stock to rise 18%, which climbed to $ 227.40 shortly after 9 a.m. EST. United today. There was also an immediate increase in trading volume for the e-commerce platform, which sells crafts, housewares, and vintage items.
Musk has moved stocks before with his tweets, but the last time it was about the wrong company. Two weeks ago, on January 7, the CEO of Tesla tweeted “Use Signal”, which probably concerned the encrypted messaging service and application developed by the non-profit association Signal Foundation, and is not publicly traded. Investors and fans of the South African billionaire quickly bought up shares of Signal Advance, a tech-component manufacturing company based in Rosharon, Texas. Signal Advance stock jumped 6350% in three trading sessions.
Etsy has already seen its stock price rise during the pandemic. continuous demand for his masks and articles related to the pandemic, thousands of new sellers, and the global shift to online retailing in several countries due to social distancing measures helped boost its sales in the third quarter at 128% year-on-year growth. While Musk’s boost is only short-term, the company has continued its momentum with articles from popular tv shows, encouragement to support small businesses while on vacation, and even an endorsement from Jen Ellis, whose mittens for Vermont Senator Bernie Sanders went viral during the inauguration of US President Joe Biden.
As an Etsy buyer, Musk has a lot of company. During Etsy’s latest earnings call, chief executive Josh Silverman said there were nearly 10 million new buyers on the platform in the third quarter.
After the morning’s rise, Etsy shares ended the day at $ 204.41, down $ 4.40 or more than 2%.
Update: This article has been updated with the Etsy share closing price.