“I kinda love Etsy,” Musk chirp, Add-in tweet That he bought Marvin’s Martian woolly helmet (an oddity from Bugs Bunny’s cartoon) for his dog – convenient because Mask, of course, wants to someday go to Mars with his other company, SpaceX.
The stock fell after the market opened though. It opened up 8% but settled late in the morning.
However, given no further company news from Etsy on Tuesday, it seems safe to say that Musk’s tweet was the primary catalyst for the stock rally.
This is, of course, absurd. It is also another example of the increasingly short-term nature of the stock market, an example where algorithms can drive prices and individual investors using services like Robinhood are eager to make a quick buck.
Recently, shares of companies that Many professional investors are short selling Because they expect stocks to fall because companies are struggling or overvalued – instead they rise with thanks Support from traders on the popular Reddit board. GameStop (GME)And the Black Berry (BB)And the Bed bath behind (BBBY)And the Messi (M) And the AMC (AMC) They are just a few examples.
But Etsy is not such a company in that it is thriving, in part because Strong demand for masks During the Covid-19 pandemic. Analysts expect Etsy sales to nearly double in 2020 and earnings per share up by more than 175%.
Musk’s tweet has shone a spotlight on Etsy even further, and it’s not the first time he’s sparking a major step in the non-Tesla origin. price The Dogecoin digital coin has emerged Late last month when he promoted it on Twitter.
Ironically, however, Etsy benefits from Musk’s endorsement. Although Tesla was Finally added to the S&P 500 at DecTesla was astonished to many on Wall Street It was ignored for the index in September. The company added at the time in place of Tesla? Etsy.
