“I really love Etsy,” Musk wrote, adding in a follow-up message that he had bought a Marvin Martian wool helmet (the alien from Bugs Bunny’s cartoons) for his dog – suitable as Musk, of course, wants to go to Mars one day with the other. his company SpaceX.
Given that there is no other company news from Etsy on Tuesday morning, it seems safe to say that Musk’s tweet was the main catalyst for the stock jump.
This, of course, is ridiculous. This is another example of the increasingly short-term nature of the stock market, where algorithms can set prices and individual investors using services such as Robinhood are willing to win quickly.
Recently, the shares of companies that many professional investors are declining – as they expect stocks to decline as companies struggle or overestimate – are instead rising thanks to the support of traders on the popular Reddit board. GameStop (GME),, BlackBerry (BB),, Bed Bath & Beyond (BBBY),, Macy (M) and AMC (AMC) are just a few examples.
But Etsy doesn’t look like these companies as it thrives, in part because of high demand for masks during the Covid-19 pandemic. Analysts predict that Etsy’s sales nearly doubled in 2020 and that earnings per share rose more than 175%.
However, Musk’s tweet put more focus on Etsy, and it’s not the first time he’s caused a big move in a non-Tesla asset. The price of the digital currency dogecoin appeared late last month when he advertised it on Twitter.
Still, it’s a little ironic that Etsy is taking advantage of Musk’s approval. Although Tesla was finally added to the S&P 500 in December, many on Wall Street were surprised when Tesla was selected for the index in September. The company that was then added instead of Tesla? Etsy.