When Elon Musk says something, something is moving somewhere in a market. Just not always what you might expect.
Clubhouse Media Group’s shares rose 117% once on Monday after the billionaire Tesla CEO tweeted on Sunday that he would go live on the social media audio app of the same name.
In fact, the privately owned Clubhouse app has nothing to do with Clubhouse Media, a little-known Chinese company called Tongji Healthcare Group, which changed its name two weeks ago.
“Somebody failed to realize that Clubhouse and Clubhouse Media Group are two different companies,” said Angelo Meda, head of stocks at Banor SIM in Milan.
With some realizing the misunderstanding, Clubhouse Media shares pulled back from record highs and the decline is likely to continue Tuesday, with shares falling 23% in early deals.
Clubhouse Media, which defines itself as an influencer-based marketing and media company, issued a statement Tuesday touching on its expansion projects but not mentioning Musk and his tweet.
However, his ability to profile an asset accidentally earned him the nickname “Papa Musk” on Reddit’s “WallStreetBets” forum, which grew in popularity during the retail-led GameStop buying spree against hedge fund creation.
US healthcare company Signal Advance jumped from 70 cents in less than a week to $ 70 when it was mistaken for an unlisted text messaging app called Signal that Musk tweeted about last month that said “use Signal” said. Signal Advance shares are now worth $ 4.50 each.
On Friday, a “#bitcoin” tag on his Twitter profile page caused the cryptocurrency to surge 14%.
On Tuesday, Musk said he was taking another break from Twitter.