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Signal Advance has soared 11,708% since an Elon Musk tweet recommending a similarly named privacy app spurred ticker confusion

Jan 12, 2021, 02:53 IST
Business Insider
Reuters
  • Signal Advance soared as much as 11,708% after Elon Musk tweeted "use Signal" on Thursday.
  • Investors seemed to have confused Musk's tweet about an encrypted messaging app with an unrelated publicly traded company.
  • Visit Business Insider's homepage for more stories.
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Shares of Signal Advance have soared as much as 11,708% since Tesla CEO Elon Musk tweeted "use Signal" to his 42 million followers on Thursday.

Investors seemed to have confused Signal Advance with Signal, the encrypted messaging platform that Musk was encouraging his followers to use.

Shares of Signal Advance, a micro-cap technology stock that trades on the over-the-counter market, soared to as high as $70.85 on Monday from $0.60 just before Musk's tweet on Thursday.

Signal Advance's market capitalization soared to nearly $300 million from $6 million last week. Shares climbed as much as 885% on Monday.

This isn't the first time investors have been confused by two similarly named companies. In March, during COVID-19 lockdowns, shares of Zoom Technologies soared as investors confused the OTC penny stock with Zoom Video Communications. The Securities and Exchange Commission temporarily halted trading in Zoom Technologies.

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Read more: BANK OF AMERICA: Buy these 10 Dow stocks to take advantage of rich dividends and a long-term strategy primed for a comeback in 2021

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