Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Elon Musk's Tweets for Independent Creators Make Etsy Shares Skyrocket


Wed 27 Jan 2021 | 06:45 PM
Ahmed Moamar

"Etsy" shares rose by around 3.5% on Tuesday after Elon Musk, the Canadian billionaire and the world's wealthiest person, praised the company on Twitter.

The Tesla founder said he "kinda loves" Etsy, prompting a sharp rally in pre-market trade, according to CNN.

Etsy is an online marketplace where independent creators can sell handmade goods.

Shares of the firm rose on Tuesday after billionaire Elon Musk tweeted about how he loves the online marketplace.

"I kinda love Etsy," Musk said in a tweet early Tuesday, adding that he bought a hand-knit woolen 'Marvin the Martian' helmet for his dog.

Although the Tesla founder didn't comment on Etsy's financial prospects, its stock surged within minutes of Musk publishing his tweet.

Etsy shares were trading around $213.38 per share, up around 2.2% on the day.

Insider's Meira Gebel reported the 15-year-old online marketplace competes with brands like Shopify, Big Cartel, and Amazon Handmade, but has grabbed its own niche in the market thanks to a seller pool that is made up of over 80% women. As of 2020, Etsy had more than 3.8 million sellers on its platform, up 51% year-over-year from 2.4 million, according to data from Marketplace Pulse.

According to its latest earnings report, the company generated revenue of about $451 million, up from $428.7 million in the previous quarter.

On the other hand, Elon Musk has pledged, on Twitter, a $ 100 million prize for developing the best technology to capture carbon dioxide from the air in an attempt to diminish emissions that causing the heating of Earth.

Capturing greenhouse gas emissions has become an important part of many plans to control climate change, but no significant progress has been made in this technology so far, with efforts focusing on reducing emissions rather than extracting carbon from the air.