Etsy executives applaud the Nasdaq MarketSite opening ahead of Etsy’s New York IPO April 16, 2015.
Michael Nagle | Bloomberg | Getty Images
Etsy’s stock is booming after Tesla chief Elon Musk sent a simple tweet about the e-commerce company.
Ety’s stock was up more than 6% after Musk tweeted, “I kinda love Etsy.”
Shares of the ecommerce company didn’t move at all in the premarket before Musk’s call at 6:25 a.m.ET. It would be the biggest gain in the S&P 500 when the markets opened.
“I bought a hand-knitted Marvin the Martian wool helmet for my dog,” Musk tweeted, seemingly in reference to why he’s a fan of Etsy.
While Musk’s opinion certainly weighs heavily on investors, the spike in stocks in his short post is another sign of wild, speculative trading in the market. Musk is no stranger to wild activity on Twitter, with a history of influencing stock prices, especially Tesla stocks, with bold statements on the social media platform.
Musk infamously tweeted last year that Tesla’s stock was “too high,” sending the stock even higher a week later.
Shares of Etsy are up more than 340% in the last 12 months as the retail market emerged as a major winner of the coronavirus pandemic. Etsy helped small businesses with no online presence reach consumers during the lockdown.
This year alone, the share is up 25%.
Also on Tuesday, Jefferies raised his 12-month price target on Etsy to a Street high of $ 245 per share.
“We believe the pandemic-induced behavioral changes will allow ETSY to tap into a wider portion of its $ 1.7T addressable market, leading to higher frequency and higher spend,” Jefferies analyst John Colantuoni told clients.
“Our DCF-derived PT soars to $ 245 (from $ 205) as accelerated traffic and our long-term deep dive into GMS builds our confidence in ETSY’s ability to continue to grow faster than overall ecommerce, Colantuoni added.
Correction: The headline was revised to correct that Musk was tweeting about the company in general.
– with reporting from CNBC’s Michael Bloom.
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