Elon Musk, Tesla CEO, tweeted Tuesday, “I sort of love Etsy.”
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 shares burst Tuesday after Tesla CEO Elon Musk sent a simple tweet about the e-commerce company.
Ety’s stock rose 9% in premarket trading after Musk’s tweet that said, “I kind of love Etsy.”
The e-commerce company wasn’t moving at all on the pre-market prior to Musk’s early morning call. It will now be the biggest winner in the S&P 500 when the markets open.
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 recently. 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 313% 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 17% this year alone.
Jefferies raised its 12-month target price for Etsy to a street high of $ 245 per share on Tuesday.
“We believe that behavioral changes triggered by the pandemic will allow ETSY to enter a broader slice of its $ 1.7 addressable product market, resulting in higher frequency and higher spending,” said John Colantuoni, analyst at Jefferies, to 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.
– with reports from Michael Bloom of CNBC.
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