![]() They studied 31 cases in which investors probably mixed up a pair of companies. In a paper published in 2019 Vadim Balashov and Andrei Nikiforov of Rutgers University analysed American stockmarket data from 1993 to 2013. These apparently trivial errors can be costly. And a covid-induced surge in users for Zoom, a video-conferencing service, coincided with a spike in investment for Zoom Technologies, a small Beijing-based holding company that traded under the ticker “ZOOM”. Last year some investors even mixed up Tesla, the electric-car maker run by Mr Musk, with Tiziana Life Sciences, a biotech firm with the ticker “TLSA”. #Twitter ticker confusion softwareIn 2017 they confused Snap, the parent company of Snapchat, a messaging app, with Snap Interactive, a software company. In 2013 traders intending to purchase shares in Twitter instead bid on Tweeter Home Entertainment, a bankrupt consumer-electronics firm-a month before the social-media platform went public. In the late 1990s investors eager for shares in MCI, an American telecoms firm, accidentally bought MassMutual Corporate Investors, a closed-end fund with the ticker “MCI”. At the peak of the frenzy its share price rose more than six-fold before falling back.Ĭonfusion over stock names is not new. Investors promptly bought shares in Signal Advance, a medical-device company from Texas with one full-time employee. On January 7th he instructed his 46m Twitter followers to “use Signal”, an encrypted messaging app. Mr Musk’s tweets have led to such snafus before. Once its new shareholders spotted their mistake, its price tumbled back down. Clubhouse Media Group is a wholly separate firm, based in China, which trades under the ticker “CMGR”. It was reportedly valued at $1bn recently when it raised $100m from private investors. The social network is not publicly listed. Unfortunately, trigger-happy traders had failed to spot that ownership of the Clubhouse app, like membership, is by invitation only. After Mr Musk tweeted that he was joining the platform on January 31st, the share price of Clubhouse Media Group soared by 117%. Lots of people want equity in Silicon Valley’s latest fad. Some users joined from mainland China, but on February 9th, the app was blocked by China’s “great firewall”. The app soon took off among Mandarin speakers around the world, who used it to discuss everything from the government’s detention of Uyghurs and the Tiananmen Square protests of 1989. By January this exclusive audience had grown to at least 2m active users, including Oprah Winfrey, Drake and Elon Musk. The social network, which was launched in March 2020, creates audio chatrooms in which users can listen to live conferences-but only if they have been invited to join the platform by existing members. With assistance from Bailey Lipschultz.THE PAST few months have been a tumultuous ride for investors in Clubhouse. In response to a comment on Twitter, Musk said he donated to Signal a year ago and plans to give more in the future. The other Signal is a closely held not-for-profit organization with a messaging service that’s similar to Facebook Inc.’s WhatsApp. Zoom Technologies, a Beijing-based maker of mobile phone components, later changed its ticker to ZTNO. in recent years resulted in brief surges in the shares of Zoom Technologies Inc., after traders confused its ticker symbol ZOOM with that of the video-conferencing company. The popularity of Zoom Video Communications Inc. The misunderstanding is the latest example of ticker mixup. The company had no revenue from 2014 to 2016, according to the filing. Signal Advance hasn’t filed an annual report with the Securities and Exchange Commission since 2019. Signal Advance doesn’t have an association with Musk or the Signal app, he said. Chris Hymel, said when reached by phone on Monday. “We strongly recommend people do their due diligence and always invest with care,” the company’s chief executive officer, Dr. Shares of the Rosharon, Texas-based company surged as much as 885 per cent on Monday before paring the gains. That was enough to push Signal Advance’s rally more than 5,100 per cent in three trading days giving it a market valuation of US$390 million.ĭespite reports about the confusion on Friday, the stock has continued to rally. By the end of the day, Signal Advance Inc. 7, apparently referring to the encrypted messaging service. chief executive officer wrote on Twitter on Jan. A two-word app recommendation from Elon Musk has turned into a massive rally in the shares of a tiny medical device company in another case of mistaken identity. ![]()
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