Article: https://www.cnbc.com/2021/01/29/elon-musks-tweets-are-moving-markets.html
Everyone is going crazy during this pandemic, for a variety of reasons. For those fortunate enough to not experience the worst of COVID, many are starting to feel restless and cooped up. One area where many are shifting their restless energy is the stock market. Buying stocks together, is now a form of community building. One of the most notable communities that has formed is on reddit, in a group known as r/wallstreetbets. Another more curious form of community building that has been operating under the radar but is just as if not more successful, are those of the Elon Musk fan club. As noted in the article, Elon has become a very influential and curious personality / influencer. Using twitter to share his fascination with memes, he's unleashed a new phenomenon, where any company he tweets about or a company with a very similar name, ends up having their stock rise immediately. The most obvious example is Gamestop which shot all the way to $483 but was hovering around $120 prior to Elon's tweet. Elon also recently tweeted for anyone to reach out to him via Signal (a messaging app) and Signal Advance, a small components manufacturer shot up 1100% the next day. Similarly, this past week, Elon announced he will be joining Clubhouse for a Q&A (an audio communications app) and Clubhouse Media Group (an influencer based marketing firm) had their stock shoot up over 50%.
So how does the SEC regulate this type of influence? Can they even do anything about it? Is it that different than when notable wall street types would go on CNBC and push one stock or another? Social media has in a sense leveled the playing field, but it's also dialed up the crazy. I don't know what the solution is, but I do know I have signed up for elonstocks.com, a website that notifies you anytime Elon tweets about a company.
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