The stock market is at peak dumb: Etsy soars because Elon Musk tweets about it
January 26, 2021. Summarized by summa-bot.
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GRUENHEIDE, GERMANY - SEPTEMBER 03: Tesla head Elon Musk talks to the press as he arrives to to have a look at the construction site of the new Tesla Gigafactory near Berlin on September 03, 2020 near Gruenheide, Germany. Musk is currently in Germany where he met with vaccine maker CureVac on Tuesday, with which Tesla has a cooperation to build devices for producing RNA vaccines, as well as German Economy Minister Peter Altmaier yesterday. (Photo by Maja Hitij/Getty Images)
Tesla CEO Elon Musk is the richest person on the planet, but he's apparently still happy to shop on handmade craft site Etsy. And in a sign of just how much influence Musk has on social media, shares of Etsy soared nearly 10% in premarket trading Tuesday just because he said he's a fan.
New York (CNN Business)Tesla CEO Elon Musk is the richest person on the planet, but he's apparently still happy to shop on handmade craft site Etsy.
And in a sign of just how much influence Musk has on social media, shares of Etsy (ETSY) soared nearly 10% in premarket trading Tuesday just because he said he's a fan.
"I kinda love Etsy," Musk tweeted, adding in a follow up tweet that he bought a wool Marvin the Martian helmet (the alien from the Bugs Bunny cartoons) for his dog -- fitting as Musk, of course, wants to one day go to Mars with his other company, SpaceX.
Given there was no other company news from Etsy Tuesday morning, it seems safe to say that Musk's tweet was the primary catalyst for the stock's surge.
Recently, shares of companies that many professional investors are shorting -- because they expect the stocks to go down since the companies are struggling or overvalued -- are instead surging thanks to support from traders on a popular Reddit board.
But Etsy is nothing like these companies in that it's thriving, in part due to strong demand for masks during the Covid-19 pandemic.
Musk's tweet put a bigger spotlight on Etsy, though, and it isn't the first time he's sparked a big move in an asset that isn't Tesla.
Still, it's a bit ironic that Etsy is benefiting from Musk's endorsement.