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Home >Markets >Stock Markets >Elon Musk asks Twitterati to use WhatsApp rival. But an unrelated stock up 1000%

When Elon Musk told his followers to use Signal, it led to a surge in the stock price of a unrelated company with similar name. Shares of a company called Signal Advance surged 91% on Friday to $7.19. On Thursday, the stock had surged over 500% on Thursday.

Tesla CEO Elon Musk on Thursday urged his Twitter followers to “use Signal", the messaging app. But some people rushed in to invest in an unrelated company called Signal Advance.

Last week, WhatsApp had started rolling out in-app notifications to users about an update in its Terms of Service and privacy policy regarding how it processes user data and partners with Facebook to offer integrations across the social media giant's products. It also stated that users will have to agree to the new terms and policy by February 8, 2021, in order to continue using WhatsApp's service.

The Signal that Musk was referring to is operated by a nonprofit. After the surge in Signal Advance shares, Signal app took to Twitter on Friday to clarify that it is a different entity.

"Is this what stock analysts mean when they say that the market is giving mixed Signals? It's understandable that people want to invest in Signal's record growth, but this isn't us. We're an independent 501c3 and our only investment is in your privacy," Signal app said.

"We continue to shatter traffic records and add capacity as more and more people come to terms with how much they dislike Facebook's new terms. If you weren't able to create a new group recently, please try again. New servers are ready to serve you," Signal app said in a tweet.

“It’s understandable that people want to invest in Signal’s record growth, but this isn’t us," Signal wrote. “We’re an independent 501c3 and our only investment is in your privacy."

According to reports, both Signal and Telegram messaging apps are seeing a sudden increase in demand after larger rival WhatsApp's updated terms of service raised eyebrows on social media.

In a tweet today, Signal app said: "We continue to shatter traffic records and add capacity as more and more people come to terms with how much they dislike Facebook's new terms. If you weren't able to create a new group recently, please try again. New servers are ready to serve you." (With Agency Inputs)

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