“Use Signal”: Elon Musk Boosted The Price Of A Business That Has Nothing To Do With App

All it took was a tweet from Elon Musk to boost the price of an unknown company. The latter indeed shares the same name as the messaging application, which has allowed it to gain in value significantly. Signal, meanwhile, continues to welcome former Whatsapp users.

Signal messaging application
Credit: Signal

Chance definitely does things well. Signal, the application that has become number 1 ahead of Whatsapp on the Play Store and the App Store, is not the only one to benefit from the Elon Musk helping hand. Signal Advance, a small American company, saw its share price skyrocket 527% this Thursday and 91% Friday. Believing they were investing in the messaging app, followers of the world’s richest new man actually drove up the share value of a Texas company by 60 cents to $ 7.19.

There is a simple explanation for all of this: Signal, the messaging app, is a non-profit organization and therefore is not not listed on the stock exchange. This is indeed the explanation given by the person on Twitter: “It’s understandable that people want to invest in Signal’s record growth, but that’s not us. We are one [société] American independent and our only investment is in your privacy ”.

Also read: How to quit WhatsApp and migrate to Signal?

Signal continues to rise

The messaging application is experiencing exponential growth for a few days. At issue: Whatsapp’s new privacy policy, which threatens to close your account if you refuse to share data with Facebook. The reaction was quick: many angry users left the platform for the competition, propelling Signal to the top of downloads. It must be said that the latter has a strong argument against Whatsapp: it encrypts each conversation and does not collect any data.

However, it is still far from the two billion users claimed by its competitor. But Elon Musk remains a very influential man, and the least of these recommendations are followed to the letter by his followers. It’s a safe bet that Signal will become a major player in online messaging in the coming weeks. As for its Texas namesake, there is no doubt that it is benefiting from its unexpected success. Before it, the Chinese company Zoom Technologies took advantage of the sudden popularity of the video conferencing application Zoom to boost its share price by 900% between January and March 2020.

Source: CNBC