An unfortunate misunderstanding yesterday caused investors to pile up Signal advance (OTCMKTS:LMIS) stock after a misunderstood Tweet from You’re here (NASDAQ:TSLA) CEO Elon Musk.
A Musk’s Tweet early Thursday morning just said ‘Use the signal’. His endorsement of the crypto-messaging service saw avid investors leap into profit on SIGL shares. There is only one problem. Signal Advance has nothing to do with the Signal application.
Signal Advance is a technology company focused on reducing delays in devices that rely on analog signals. This is a far cry from everything the CEO of Tesla was talking about yesterday. Even so, more than 447,000 shares have changed hands today. That’s well above the average daily trading volume of the SIGL share of just around 10,000 shares.
So if Singal Advance has nothing to do with the Signal app, then who does? The app is an original idea of Moxie Marlinspike and Brian Acton. Marlinspike has been involved in the encryption market for years with the launch of TextSecure and Red Phone in 2010. Acton’s specialty is social media and he is the co-founder of WhatsApp.
All this recalls the Focus on video communications (NASDAQ:ZM) and Zoom Technologies (OTCMKTS:ZOOM) confusion that took place last year. Back then, investors ended up betting on bad stocks. Ironically enough, this was the first time this had happened. Zoom Video Communications’ initial public offering (IPO) also led to an increase in ZOOM stock.
SIGL stock was up 47.1% on Friday morning.
As of the publication date, William White does not have (directly or indirectly) any position in any of the securities mentioned in this article.
Article printed by InvestorPlace Media, https://investorplace.com/2021/01/signal-stock-confusion-did-elon-musk-tweet-have-investors-piling-into-sigl-stock/.
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