We all know about Elon Musk's tweets and the power they can have on the stock market. Etsy's one is just the latest testimony of how much the opinion of a character known as Musk can change the market price.
This is not the first time Elon Musk has spent a good word for a company and it suddenly sees its value increase. In fact, as early as January 7th, Tesla's CEO tweeted two simple words:
The result of this short announcement was an incredible increase in downloads of the email application. By the end of the same day, the actions of Signal Advance Inc. had been multiplied by more than six.
Recently something similar happened with Etsy, the e-commerce site based on handmade or vintage items. With another extremely short tweet last Tuesday, he reported to his fans:
"I kinda love Etsy."
In a follow-up tweet he then explained that he had bought a woolen hat from Marvin the Martian to his dog, also called "Marvin the Martian".
It only took the slightest positive opinion to convince a large group of fans to invest in Etsy. On the same day as the tweet, Etsy's shares increased by 3.5%. Etsy responded to Musk's tweet by thanking him and quoting an aspect that interests him a lot:
"@elonmusk, we love you to Mars and back."
The reference is clearly to the efforts of the SpaceX CEO to reach the planet Mars.
Over time, Elon Musk has gained a lot of notoriety among private investors with his tweets. We can say that today Musk represents one of the most influential people on the planet. Tesla and his other companies get a very high level of attention on social media on a daily basis. Whether the news is good or bad, we always hear about Elon Musk.
Thanks to the exuberant personality of the multi-billionaire South African, and his innovative and brilliant ideas, his products have always received "free" advertising. If you think about it, you will realize that you have never really seen an advertisement for a Tesla car, for example. Tesla's policy is not to pay for advertising anywhere in the world. However, everyone knows Elon Musk and his companies very well today.
The growth of his companies
At only 24 years old, Elon Musk sold his Zip2 business for more than $300 million and founded Paypal, then sold it to a millionaire. In 2002, Elon Musk decided to sell Paypal to eBay for $1.5 billion. This action brings him great wealth and notoriety. In 2016, Paypal ends the fourth quarter with a profit of $367 million, up 28% over the previous year.
It thus continues to invest in the sectors of the future: Spacex for space travel, Tesla for electric cars, Solar City for renewable energies. His companies have evolved impressively over the years, making him one of the richest men on the planet.
Tesla, for example, has grown from $50 billion in capitalization to over $700 billion in just two years. Founded in 2003, Tesla is now one of the world's leading automakers by market capitalization.
A few days ago, Elon Musk officially became the richest man in the world. His total wealth has reached a staggering $194.8 billion, surpassing that of Amazon's number one, Jeff Bezos. A data which seems to justify the follow-up in the field of investment choices.
Perhaps it is his successes that are exerting such an influence on some investors. All the great ideas that Elon Musk has produced over the years have resulted in many people hanging on his every word today. Thus, every time a tweet is published that advertises a brand on its profile, that brand can only thank.
A visionary, proactive entrepreneur who likes to take risks: this is Elon Musk's recipe for success. Success that comes after so many failures, but it is on this mechanism that contemporary entrepreneurship is based.
"Failure is a right to grow."
Say the greats of Silicon Valley. Musk is a genius and has a lot of courage, but he too has gone to great lengths for his education: he has a degree in physics and economics.