An unfortunate mixup yesterday result in investors piling on Signal Advance (OTCMKTS:SIGL) stock after a misunderstood Tweet from Tesla (NASDAQ:TSLA) CEO Elon Musk.
A Tweet from Musk early Thursday morning simply said “Use Signal.” His endorsement of the encrypted messaging service saw investors hungry to make a profit jump on shares of SIGL stock. There’s only one problem. Signal Advance has nothing to do with the Signal app.
Signal Advance is a tech company with a focus on reducing delays in devices that rely on analog signals. That’s a far cry from anything that the Tesla CEO was talking about yesterday. Even so, more than 447,000 shares have changed hands today. That’s well above SIGL stock’s daily average trading volume of only about 10,000 shares.
So if Singal Advance has nothing to do with the Signal app, then who does? The app is the brainchild of Moxie Marlinspike and Brian Acton. Marlinspike has been involved in the encryption market for years with the launch of TextSecure and Red Phone in 2010. Acton’s specialty is social media and he’s the co-founder of WhatsApp.
All of this is reminiscent of the Zoom Video Communications (NASDAQ:ZM) and Zoom Technologies (OTCMKTS:ZOOM) confusion that took place last year. At that time, investors ending up putting their stakes in the wrong stocks. Ironically enough, that was the first time it had happened. The Zoom Video Communications initial public offering (IPO) also resulted in a boost to ZOOM stock.
SIGL stock was up 47.1% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.