Shares of Clubhouse Media Group skyrocketed Monday following a Sunday tweet from Tesla CEO Elon Musk.
The issue is that Musk tweeted in regards to the privately owned Clubhouse audio app, which isn’t the corporate that is seen huge share good points in consequence. “On Clubhouse tonight at 10pm LA time,” Musk stated on Twitter Sunday.
Clubhouse Media Group, ticker CMGR, rallied about 45% Monday, based on Markets Insider knowledge. However the firm has nothing to do with the Clubhouse voice app, which Musk touted. Final 12 months, an organization, formally referred to as Tongji Healthcare Group, Inc., acquired a social media influencer firm referred to as “The Clubhouse.” Clubhouse Media Group operates as “an influencer-based marketing and media firm with a world mixture social media attain of over 100 million followers,” based on an organization press launch.
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“We aren’t affiliated with the app. We don’t need any confusion with them in any respect,” an organization spokesperson instructed Insider. “We do not know why the rally occurred. It could have been Elon Musk. We do not know.”
Clubhouse, the corporate behind the social media voice app, didn’t instantly reply to Insider’s request for remark.
The Financial Times attributed the large share rally to the “Elon Impact,” a reference to Musk. Lately, shares have been rallying on hype from day merchants on platforms like Reddit. Thousands and thousands of members of the subreddit “Wall Avenue Bets” have prompted GameStop stock to skyrocket, although Monday, it pared some of those gains. Dogecoin, Bitcoin, and Tesla have seen comparable rallies, the FT stated.
Final week, Robinhood stopped customers from shopping for shares of GameStop amid the frenzy. On Sunday night time, Musk interviewed Robinhood CEO Vlad Tenev on the Clubhouse audio app. Enterprise Insider reported on the bizarre interview, wherein Musk questioned Tenev on his alternative to dam consumers.
The Clubhouse audio app, which is totally separate from Clubhouse Media Group, is thought for internet hosting Silicon Valley leaders and celebrities. However quickly, the CEO stated, it is going to be open to everybody.