The shares of GameStop saw an ultimate surge rising as high as 157% on Wednesday after Tesla’s CEO and billionaire Elon Musk tweeted “Gamestonk!!” on Tuesday. ‘Stonks’ is a term that is generally used in the meme-world and social media for the word stocks. Thanks to just a one-word Tweet by Musk, the market value of GameStock flew above the $10 billion mark.  

With this gain, the market value of GameStop is now more than 10% of the S&P 500 stocks which includes huge companies like American Airlines, Under Armour, etc. 

What really happened with GameStop’s shares? 

GameStop is currently the juiciest fruit on the Wall Street tree. The company’s share value rose by 160% which is the highest value the stock has seen in a long time. For the uninitiated, GameStop is a store that sells video game DVDs, pokemon accessories and other game-related merchandise. 

Due to the fact that gamers are now moving towards buying games digitally on the cloud, and the COVID-19 pandemic, which forced people to stay in their homes and not visit stores much, GameStop has been on a steady decline. 

A company saw this decline as an opportunity to short-sell GameStop stocks. However, a community of brokers on Reddit’s r/WallStreetBets got a whiff of what was to transpire and stepped in. 

These day traders used the website’s subreddit “WallStreetBets” to boost the share prices up and fight back the short interest that was increasing with the day. The ultimate flashpoint of the entire ordeal occurred when Elon Musk himself jumped the bandwagon and used his Twitter influence to drive the share prices of GameStop even further up. 

As always, the Twitteratis acknowledged the influence Elon Musk has on Twitter which eventually led to a significant increase in GameStop’s share values. 

Twitter’s reaction to Elon Musk’s GameStonk tweet:

Elon Musk at it again, Etsy sees an increase in share value thanks to Elon’s Tweet 

In another incident similar to GameStop’s rally fueled due to Musk’s Tweet, Elon Musk drove up the stock of e-commerce website Etsy with a single tweet.  

The Tesla CEO complimented the American e-commerce company Etsy in one of the tweets where he wrote “I kinda love Etsy”.  

This tweet was followed by another tweet where Musk explained how he “bought a hand knit wool Marvin the Martian helm” for his dog. 

After the mention of Etsy by Musk on Twitter, the company’s share value increased to as much as 8.6%. According to Bloomberg’s report, Etsy hit an intraday record thanks to Musk’s mention.  

Etsy Inc in its own quirky way responded to Musk and wrote “we love you to Mars and back.”  with a link of Mars-related posters available on their platform.  

One Musk tweet can change the fortune of the wrong company 

The power of Elon Musk’s influence on Twitter is such that it can boost the price of any stock, even the price of the stock of a completely different company.  

Earlier this month, the shares of Signal Advance, a tech manufacturing firm based in USA saw a significant increase in its value due to a single tweet by Musk. On January 7, the South-African billionaire tweeted “Use Signal”. 

Musk in his tweet was asking people to use Signal, the encrypted messaging app, and rival of WhatsApp. But fans of Musk, who affectionately call him “Papa Musk”, instead bought the shares of Signal Advance, a completely different company.  

Musk Wiped a total of $14 billion off Tesla’s value with his own tweet  

On May 1, 2020, Elon Musk sent out a bunch of Tweets which led to his electric-vehicle company Tesla’s share price plummeting. The Tesla CEO tweeted how the price of Tesla’s stock was “too high imo”. Due to this simple tweet, the price of the stock fell down more than 10 percent immediately after.  

The outspoken billionaire didn’t stop there and sent out another tweet in which he wrote, “I am selling almost all physical possessions. Will own no house.” This led to panic amongst the investors and sent Tesla’s stock to such a bearish spiral that approximately $14 billion dollars were wiped off Tesla.