Etsy executives applaud as they opened Nasdaq MarketSite ahead of Etsy’s initial public offering in New York on April 16, 2015.
Michael Nagle | Bloomberg | Getty Images
Etsy’s stock is exploding after Tesla boss Elon Musk sent a simple tweet about the e-commerce company.
Ety’s shares rose more than 6% after Musk tweeted: “I kind of love Etsy.”
The shares of the e-commerce company were not moving in the pre-market before Musk’s call at 6:25 am Eastern time. He was set to be the biggest winner on the S&P 500 when the markets were opened.
“I bought a hand-knitted wool helmet from Marvin, the Martian for my dog,” Musk tweeted, apparently in reference to why he was an Etsy fan.
Although Musk’s opinion certainly weighs heavily on investors, the increase in stocks in his short message is another sign of speculative trading in the market. Musk is well aware of the wild activity on Twitter, with a history of influencing stock prices, especially Tesla’s shares, with bold statements on the social media platform.
Musk infamously tweeted last year that Tesla’s shares were “too high”, sending even higher shares a week later.
Etsy’s stock has risen more than 340% in the past 12 months, as the purchasing market has emerged as a major winner in the coronavirus pandemic. Etsy helped small businesses with no online presence reach consumers during the block.
The stock rose 25% this year alone.
Also on Tuesday, Jefferies raised its 12-month price target on Etsy to a maximum of $ 245 per share.
“We believe that the behavioral changes prompted by the pandemic allow ETSY to take advantage of a wider portion of its $ 1.7T addressable market, leading to increased frequency and spending,” said analyst John Colantuoni of Jefferies to customers.
“Our DCF-derived PT increases to $ 245 (from $ 205) as accelerated traffic and our deep dive into long-term GMS increase our confidence in ETSY’s ability to continue to grow faster than general e-commerce “added Colantuoni.
Correction: the title was revised to correct that Musk was tweeting about the company in general.
– with a report by Michael Bloom of CNBC.
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