Regardless of this fact, Musk’s tweet was misinterpreted by Wall Street. From last week to Monday, the healthcare company Signal Advance (OTCMKTS: SIGL) saw its stock price increased from $0.60 per share to as much as $38.70 per share at the end of the trading session on Monday.
This all occurred because of a misunderstanding, nothing else. Axios suggested the driver of the surge is a mania with stock prices.
By Tuesday, the stock price of Advance Signal dropped by more than 74% to $10 per share. Still, the company’s market cap increased to $917 million from around $7 million.
There is another big takeaway here; the power of a tweet should not be underestimated in today’s digital universe.
Anything social media related tends to have a ripple effect that reverberates in unexpected places.
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