There’s a big debate going on in finance land over whether we are in an assets bubble or whether new technology and tools of government justify the enormous appreciation that has been going on, not just since the pandemic bottom in March, but for nearly a decade. The people who believe we are in an unsustainable bubble have a pelt in their favor this week after this astounding story involving Elon Musk — and they don’t even need to point to Tesla, which has been in the center of the bubble debate after going up about 800 percent in the last year.
On January 7th, Musk tweeted, “Use Signal.”
— Elon Musk (@elonmusk) January 7, 2021
He meant the private messaging app Signal, and this was presumably a response to all the censorship that is happening in big tech. Signal, which is funded by a non-profit organization, is a rival of the Facebook-owned WhatsApp chatting app. Musk has said he intends to donate to its cause.
A byproduct of this tweet, however, is that an unrelated company called Signal Advance, which manufactures technological components that have a function which I’m not smart enough to understand, has seen its stock SKYROCKET.
According to CNBC, the stock for Signal Advance closed at 60 cents a share on January 6th, the day before Musk’s tweet. It has now had several days of massive appreciation — it opened today at $7.35 a share, went all the way up above $70, and settled at $38.70. This means that it went up 438.25 percent today alone, and has gone up over 6,000 percent in the past week.
“The stock saw its highest trading volume since going public in 2014 on Monday; more than 2 million shares changed hands, while on Jan. 4, not a single share of the stock was traded,” CNBC reports. “Signal Advance, which reported receiving no revenue in 2015 and 2016, is now worth more than $3 billion.”
What a wild time to be alive.