The recommendation also resulted in an increase of an unrelated stock with the same name.
Elon Musk has more than 41 million followers on Twitter. He’s one of the active entrepreneurs on this micro-blogging site. He’s been using this platform to make announcements and recommendations.
And recently, he urged his followers to use Signal, the encrypted messaging app. Jack Dorsey, Twitter’s co-founder, retweeted the message.
Shortly after that, Signal reported a swell of new users.
With the surge, Signal tweeted that there’s been a delay in verifying phone numbers because there are so many people joining the app right now.
Musk and Facebook
It’s not the first time that Musk criticized Facebook over its privacy concerns.
He removed his personal page from Facebook, as well as Tesla’s and SpaceX’s Facebook pages, in 2018.
Encrypted Messaging Apps
Signal and WhatsApp are encrypted messaging apps. After Facebook acquired WhatsApp, the messaging app vouched not to share user data with Facebook.
But it changed a few years after the acquisition deal. It started to collect certain user data with Facebook, its parent company.
It means that if they don’t want WhatsApp to share their data with Facebook, they can no longer use the app.
Signal, on the other end, is against user data sharing. In fact, it continues to add features that can further anonymize users.
The app doesn’t store user data. In addition to its encryption functionality, it provides extended privacy options, like disappearing messages.
That’s why if you wish to protect your privacy, Signal is your better bet than WhatsApp.
However, Signal has been facing a lot of challenges, especially its wider adoption. For instance, if you send an encrypted Signal message to someone but your recipient doesn’t have a Signal account, then the privacy is nothing.
But this might change after Elon Musk’s endorsement that caused an increase in Signal’s new users.
In addition to Signal’s new users boost, Elon’s tweet resulted in a surge in an unrelated stock.
Although a lot of people knew that Elon was referring to the messaging app, some people took it the wrong way.
Elon’s tweet caused Signal Advance’s shares to climb from $0.60 to $7.19. Signal clarified that it’s not related to Signal Advance.
The two “Signals” may be using technology but Signal Advance focuses on health care. It’s a small company with no full-time employees.
Signal, the messaging app, on the other hand, operates entirely on donations.
But this kind of issue isn’t new on Wall Street. For instance, while investors waited for Twitter’s IPO, Tweeter Home Entertainment Group’s shares increased to more than 1,000%.
Nevertheless, Musk’s tweet is an indication of his growing influence.
Over the past year, his Tesla company rose to 800% in market cap.
And on Thursday, he surpassed Jeff Bezos and became the world’s richest person. His Tesla company is now the fifth most valuable company in the US. And yes, it surpassed Facebook.