Did you read this headline and immediately ask “what the heck are Baby Shark stocks?” Well, you’re not alone.
Up until very recently, there was no such thing as Baby Shark stocks, however, a single statement has changed that completely. And no, it’s not a meme-inspired stock, like dogecoin.
Baby Shark stocks are a reference to Samsung Publishing which is a company that publishes books and magazines and not to be confused with the multinational conglomerate Samsung Group.
Samsung publishing is the majority stakeholder of entertainment firm SmartStudy, who produced the popular children’s song “Baby Shark.”
Some recent celebrity endorsements of the song have caused surges in Samsung Publishing and more. But what about these celebrity endorsements has led to these surges?
Let’s explore these recent market events and break down their implications.
What Caused the Surge in Baby Shark Stocks?
Surges in Samsung Publishing (Baby Shark stocks) and Dogecoin can be traced back to a single person: Elon Musk.
As you may remember, not too long ago Musk was under fire for tweets that caused crashes in Bitcoin stock, which trickled into other cryptocurrencies.
Well, he was back at it again, but this time his tweet was simply an acknowledgment of his love for the popular children’s song “Baby Shark.”
His tweet, “Baby Shark crushes all! More views than humans.” was posted with a link to the Youtube video. This inadvertently caused the price of Samsung Publishing to shoot up 10% before closing at about 6%.
But Baby Shark stocks were not the only ones to receive a boost from Musk tweeting.
Earlier this month, he tweeted: “Found this pic of me as a child” that included a meme featuring the famous Shiba Inu dog that is associated with the name doge.
This one tweet from Musk caused a surge of 27% for Dogecoin. With that kind of influence, it’s no wonder Musk has been reprimanded for tweeting in the past.
Musk’s Trouble Tweets
In 2018, Tesla, the company that Musk is the CEO of, settled with the SEC over tweets by Musk that cost the company $20 million. He had also agreed that his public statements (tweets) should be overseen by Tesla’s lawyers first.
It was revealed recently, however, that the SEC had sent a letter to Tesla asking them to enforce the agreement after Musk had tweeted on two separate occasions.
One tweet, regarding Tesla’s stock price as being “Too high IMO” and another boasting about Tesla’s production capacity were both violations of the court-ordered agreement according to the SEC.
It’s likely that following recent events he may face more fines, restrictions, or other consequences for his tweets.
It’s hard to imagine that the SEC will take the same actions as before, but will it have any effect on Musk’s public statements.
Tesla Stock Updates
Tesla has seen some recent gains thanks to an agreement with Luminar Technologies for testing and development of Luminar’s laser technology.
So what does the laser have to do with Tesla? Well, this indicates that Tesla, an electric car manufacturer, may be looking to start testing new laser technology for its vehicles.
Although this news did cause a bump up in Tesla stocks, it’s still down 14% year to date.
Despite being known for its electric vehicle production, Tesla has begun the process of entering other industries, such as the restaurant business.
As of now, Tesla has three trademarks pending that will cover them in different parts of the restaurant industry. This includes restaurant services such as pop-up restaurant services, self-service restaurant services, and more.
But where does this idea come from? Back in 2017 former CTO JB Straubel spoke about Tesla’s venture into the restaurant business at the FSTEC restaurant-technology conference.
Essentially the idea is that electronic vehicle (EV) stations would be transformed into convenience stores that also sold food.
And since Tesla has multiple EV stations in the US, it’s no surprise that they would make this move. In fact, Tesla has already attempted a similar idea where they created a lounge at one of their Supercharger stations in Kettleman City, California.
Crypto Industry Updates
Keeping along with the surges in Baby Shark stocks following Elon Musk’s tweets, it’s time to look at another sector of the market that has been vulnerable to celebrity endorsements.
Only a few months ago, bitcoin and other cryptocurrencies suffered a major crash in stock price. The culprit for the crash? You’ll never guess—it was an Elon Musk tweet.
However, instead of his usual joke-style or personal opinion tweets that were discussed earlier, this was an actual statement about his company Tesla. He took to Twitter to announce that Tesla would no longer accept crypto as a form of payment.
This sent shockwaves throughout the crypto sector, as Musk and Tesla had been major advocates of crypto previously. In his statement, he claimed that the decision was based on the energy inefficiency of mining crypto.
Whether or not that is the case doesn’t really matter, but the effect it had on market confidence does. Many investors still remain skeptical of crypto, and tweets by must aren’t exactly reassuring.
Around the same time as this fiasco, China took steps to regulate and restrict cryptocurrency exchanges. Although they have not outright banned crypto trading, they have made it impossible for financial institutions from engaging in activities related to crypto.
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