Источник изображения: CNBC

Musk advertised Signal, and the company’s shares rose 100 times. But it turned out that investors invested in the wrong place


We recently reported that Elon Musk encouraged subscribers to use the Signal messenger on his Twitter. This happened amid an update to WhatsApp’s privacy policy, which caused discontent among users. After that, a lot of investors began to acquire shares of Signal Advance, but it has nothing to do with the messenger.

Image source: CNBC

Image source: CNBC

A little later, the developers of the messenger reacted to this on their twitter, writing that Signal is not listed on the exchange and is a non-profit organization. The company of the same name, Signal Advance, whose shares were mistakenly acquired by investors, was founded in 1992 in Texas, it provides medical services. On January 7, its shares rose by 527%, a day later by another 91% (in money – from 60 cents to $ 7.19 per share). As a result, the market capitalization of Signal Advance increased from $ 55 million to $ 660 million.

The public offering (IPO) of Signal Advance took place in 2014. However, the company is so small that it doesn’t even report earnings to the US Securities and Exchange Commission (SEC). As of March 2019, CNBC notes that Signal Advance does not have a single full-time employee other than CEO Chris Hamel, but he unfortunately declined to comment.

Such situations are not uncommon in the investment environment. Six years ago, as investors waited for Twitter to go public, Tweeter Home Entertainment Group rallied more than 1,000%. In April 2019, when Zoom Video Communications (the same video conferencing platform) was conducting an IPO, investors mistakenly began to buy shares of another Chinese company, Zoom Technologies. And there are dozens of similar examples.

On Thursday, it became known that Elon Musk became the richest man in the world – his fortune reached $ 185 billion.

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