Etsy saw a sudden share price rise yesterday in pre market trading by up to 9% and the reason was down to one tweet from Tesla CEO Elon Musk.
In a short thread posted by the Tesla and SpaceX chief he mentioned how he ‘kinda loves Etsy’ along with a photo of a ‘hand knit Marvin the Martian helm’ for his dog.
Prior to the tweet Etsy was showing no signs of movement during pre-market trading and as such it is fair to say, the movement all stemmed from Elon’s tweet.
This is of course not the first time Elon has be known to influence market value with a tweet, having previously done so with his own Tesla stock by exclaiming it was ‘Too High’ and most recently his simple endorsement of Signal, has caused a huge surge in it’s popularity as many have been leaving Whatsapp in droves through new privacy changes, opting for Signal due to Elon’s recommendation.
More Good News For Etsy After A Strong 2020
The celebrity endorsement from Elon Musk will put even more momentum behind what was already a great 2020 for the niche marketplace.
According to marketplacepulse Etsy has recorded a 51% year on year growth in numbers of active sellers. Comparing Q3 2019 to Q3 2020 the number of active users on Etsy rose from 2.44 million to 3.68 million.
With more active sellers comes a larger catalog of products, which in turn leads to more buyers. Etsy are due to announce their Q4 results in the next 4 weeks which will give us a deeper look into their performance through the holiday period.
Time will tell whether Etsy will continue to carry this current momentum further into 2021, but so far it has been a good start for the marketplace, despite what certain wall street advisors had predicted for Etsy in 2021.
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