How Elon Musk’s tweets are moving markets

Tesla
founder and world’s richest person Elon Musk’s Twitter profile has been moving
markets. On Friday, Musk changed his Twitter bio
to “Bitcoin,” which led to the cryptocurrency shooting up by 14%, Reuters reported. 

This
is not the first time that Musk’s Twitter page has influenced the market. On
Thursday, the shares of CD Projekt, the maker of Cyberpunk 2077 computer game,
jumped up 12% after Musk tweeted about the game.

“With Cyberpunk, even the
hotfixes literally have hotfixes, but … great game,” he tweeted.

On Tuesday, there was a
frenzied surge in the GameStop shares when he tweeted “Gamestonk!!” and
posted a link to the WallStreetBets Reddit thread.

Similarly,
the shares of Etsy jumped 9% on Tuesday right after the billionaire
tweeted that he “kinda loved” the e-commerce website. Musk said he purchased a
“hand knit wool Marvin the Martian helm” for his dog.

This
pattern has left investors worried.

“There’s an odd irony to Elon
Musk’s ability to move the market, while attacking what he sees as unnatural
market forces in short-selling. It might be that this is finally the time to
have a discussion on the legitimacy of the practice,” Freetrade analyst Dan
Lane told CNBC.

Earlier this month, investors
misconceived a tweet by Musk asking his Twitter followers to use ‘Signal app’
and bought shares in an unrelated company, Signal Advance, by the similar name.
This led to 500% boost in shares of the company.