Clubhouse stock skyrocketed after Elon Musk tweeted about an unrelated social media app of the same name
- Shares of
Clubhouse Media Grouprallied after Elon Musktweeted about a different company.
- The "Elon Effect" has hit Clubhouse,
GameStop, Dogecoin, and more, the FT said.
The problem is that Musk tweeted about the privately owned Clubhouse audio app, which is not the company that's seen massive share gains as a result. "On Clubhouse tonight at 10pm LA time," Musk said on Twitter Sunday.
Clubhouse Media Group, ticker CMGR, rallied about 45% Monday, according to
Read more: Bank of America warns of 3 looming catalysts that could send the bull market crashing in 2021 - and shares how to position for the 'big change' as the WallStreetBets crowd fights against the system
"We are not affiliated with the app. We do not want any confusion with them whatsoever," a company spokesperson told Insider. "We have no idea why the rally happened. It may have been Elon Musk. We have no idea."
Clubhouse, the company behind the social media voice app, did not immediately respond to Insider's request for comment.
The Financial Times attributed the massive share rally to the "Elon Effect," a reference to Musk. Recently, stocks have been rallying on hype from day traders on platforms like
Last week, Robinhood stopped users from buying shares of GameStop amid the frenzy. On Sunday night, Musk interviewed Robinhood CEO Vlad Tenev on the Clubhouse audio app. Business Insider reported on the bizarre interview, in which Musk questioned Tenev on his choice to block buyers.
The Clubhouse audio app, which is completely separate from Clubhouse Media Group, is known for hosting Silicon Valley leaders and celebrities. But soon, the CEO said, it will be open to everyone.
- WATCH: "Someone said I am good enough to be a rickshaw puller," shares Freshworks CEO Girish Mathrubootham in a candid chat
- Watch a raven take out a Google drone mid-air as the tech giant is forced to ground its home delivery service due to bird attacks
- Those who have held these stocks for a decade have only lost money
- MyGlamm has set aside $100 million to acquire 6 beauty and personal care brands under new entity
- After Moderna chief, Pfizer CEO says COVID-19 likely to end in a year
- Like many 23-year-olds, Google is facing ‘trust’ issues
- COVID-19: Mizoram's positivity rate at 32% after 1,659 new cases registered in the state
- IPL 2021: Mumbai Indians slips down to seventh spot after losing a match to RCB