Unfortunate confusion yesterday resulted in investors piling up Signal Advance (OTCMKTS:SIGL) stock after a misunderstood tweet from Tesla (NASDAQ:TSLA) CEO Elon Musk.
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AN Musk Tweet on Thursday morning, he simply said “Use the sign”. His endorsement of the encrypted messaging service made investors want to jump in profits on SIGL’s shares. There’s only one problem. Signal Advance has nothing to do with the Signal app.
Signal Advance is a technology company focused on reducing delays in devices that depend on analog signals. This is a far cry from everything the Tesla CEO was talking about yesterday. Even so, more than 447,000 shares have changed hands today. This is well above the average daily trading volume of SIGL shares, of only about 10,000 shares.
So if Singal Advance has nothing to do with the Signal app, who has it? The application was designed by Moxie Marlinspike and Brian Acton. Marlinspike has been involved in the crypto 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 of this is reminiscent of the Zoom Video Communications (NASDAQ:ZM) and Zoom Technologies (OTCMKTS:ENLARGEMENT) confusion that occurred last year. At that time, investors ended up betting on wrong stocks. Ironically, it was the first time that it happened. Zoom Video Communications’ initial public offering (IPO) also resulted in an increase in ZOOM’s shares.
SIGL’s shares were up 47.1% on Friday morning.
As of the date of publication, William White had (directly or indirectly) no positions in the securities mentioned in this article.
Printed article from InvestorPlace Media, https://investorplace.com/2021/01/signal-stock-confusion-did-elon-musk-tweet-have-investors-piling-into-sigl-stock/.
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