Etsy shares leap after Elon Musk tweeted that he kinda loves the ecommerce firm
Etsy executives welcome the opening of Nasdaq MarketSite ahead of Etsy going public on April 16, 2015 in New York.
Michael Nagle | Bloomberg | Getty Images
Etsy stocks surfaced Tuesday morning after Tesla CEO Elon Musk sent a simple tweet about the e-commerce company.
"I kind of love Etsy," tweeted Musk at 6:25 am CET, fueling an Ety's stock rise by up to 8%. However, by early afternoon the price was lower on the day, closing 2.1%.
The e-commerce company's stocks didn't move at all prior to Musk's pre-market callout.
"I bought a hand-knitted woolen Marvin oar for my dog," Musk tweeted, apparently referring to why he's a fan of Etsy.
While Musk's opinion certainly carries a lot of weight with investors, the stock's surge in his short message is yet another sign of wild, speculative trading in the market. Musk is no stranger to wildcat activity on Twitter, with a history of swaying stock prices, especially Tesla shares, with bold statements on the social media platform.
Musk infamously tweeted last year that Tesla's shares were "too high" and sent even higher shares a week later.
Etsy stocks are up more than 300% in the past 12 months as the shopping market emerged as the top winner in the coronavirus pandemic. Etsy helped small businesses with no online presence reach consumers during the lockdown.
The stock is up 15% this year alone.
Also on Tuesday, Jefferies raised its 12-month price target for Etsy to a street high of $ 245 per share.
"We believe that behavioral changes triggered by the pandemic will allow ETSY to tap a broader slice of its $ 1.7 billion addressable market, resulting in higher frequency and higher spending," Jefferies analyst John Colantuoni told Customers .
"Our DCF-derived PT climbs to $ 245 (down from $ 205) as the accelerated traffic and our deep dive into the long-term GMS improve our confidence in ETSY's ability to continue to grow faster than all e-commerce grow, "added Colantuoni.
Correction: Updated the headline to correct that Musk was tweeting about the company in general.
– with reports from Michael Bloom of CNBC.
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