Elon Musk worries with potential ‘market shake’

01/02/2021 10:52 GMT + 7

Elon Musk mentioned the name of any company, and immediately its shares rose. This raises concerns about the ability of the world’s richest to ‘shake the market’.

Tesla CEO Elon Musk. Photo: Reuters

Bitcoin’s value increased 20% to $ 38,566 on Jan. 29 after Elon Musk changed his Twitter profile to #bitcoin, fueling speculation he had bought more of the virtual currency.

Less than 24 hours later, the world’s richest billionaire helped shares of CD Projekt, maker of computer game Cyberpunk 2077, increase more than 12% in value after he announced on Twitter that the new Tesla Model S Plaid. will allow passengers to play games. He also praised Cyberpunk as a good game.

Previously, Elon Musk “fueled” for shares GameStop when tweeting “Gamestonk” with a link to the topic WallStreetBets on Reddit. “Gamestonk” combines GameStop and “stonk”, a slang word related to stocks.

According to independent analyst Dane Lane, Elon Musk’s ability to rock the market is a bizarre irony. Perhaps it is time to talk about the legitimacy of this practice, he said.

Musk’s tweet helped GameStop’s value soar to more than $ 10 billion during overtime and caused some amateur trading apps to shut down. However, some people lose a lot if GameStop’s stock goes down.

Vincent Flood, speaker of the ad market “VideoWeek” podcast, argues that Musk’s tweets can have devastating consequences for retail investors while he and his friends enrich themselves. Former Google employee Rich Pleeth is also gay when remarking: “Musk is an innovator, but that doesn’t mean he’s above the law.”

Even so, Max Levy, Business Development Manager at online investment management app Nutmeg, says this has always happened in capital markets. Warren Buffett and Ray Dalio are also stock price influencers like Musk.

“I quite like Etsy”

Hours after the tweet “Gamestonk !!”, Musk said, “I quite like Etsy,” which helped the online craft market to increase 9%.

The US Securities and Exchange Commission (SEC), which was created in the 1930s to protect investors, declined to comment when CNBC questioned concerns about Musk’s possible manipulation of shares on Twitter. are not. So is the New York Stock Exchange.

Musk was in trouble with the SEC because of tweeting about Tesla shares. In August 2018, he said he wanted to make Tesla a private company and asked for enough capital to do so. Musk and Tesla then each had to pay a $ 20 million fine to settle the case, and Musk agreed to let his lawyer advise on public statements about finance and other topics related to Tesla. In 2020, he famously again tweeted Tesla’s stock price “too high”, causing the company’s shares to drop more than 10% in an instant, though rebounding within a week.

In early January, Musk urged 48.3 million followers on Twitter to use the secure messaging app Signal. As a result, investors rushed to buy shares of Signal, but many people bought the wrong shares of a small component maker with the same name, making their share price increase by 1,100%.

Managers not only need to catch up, Lane says, but also actively enforce regulations and clarify what is acceptable. He mentioned that the new generation of leaders already has an open background for expression and is no longer confined to meeting rooms. How to deal with that is the authority of the regulators, but in the end, they must update the regulations.

Venture capitalist Hussein Kanji believes in the SEC’s responsibility to keep the market fair and fair. Still, it seems odd that Elon Musk is acting as an influencer and driving demand in the tightly regulated stock market. Meanwhile, according to Steven Barlett, founder of social networking company The Social Chain, “the mass market now has influencers like the bodybuilding and beauty world.”

Du Lam (According to CNBC)

GameStop has become a global phenomenon

GameStop has become a global phenomenon

Not only within the United States, the whole world is referring to the GameStop in an unprecedented war between ‘autistic people’ and the American super-rich.


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