Today’s tech market looked positive in the middle of the day. The Nasdaq was up by close to 1% in trading and key components were moving upward. Two big stories dominated the minds of traders, however. Tesla Motors Inc (NASDAQ:TSLA) is rebounding after two days of big losses, and Twitter is causing market chaos even before it goes public.
Tesla on the rebound
At time of writing shares in Tesla Motors Inc (NASDAQ:TSLA) were sitting at $178.70, up 3.11% for the day so far. The firm’s shares lost more than 10% of their value on Wednesday and Thursday after worries that a bubble in the company’s stock was about to burst. The market appears to have calmed itself on that now, however.
The Tesla Motors Inc (NASDAQ:TSLA) drop was fueled by a downgrade from Baird Research, and a viral video showing a fire covered Tesla Model S after a collision. The two events, coupled with the hyper valuation of the company, led to a flight from shares and the price of the company collapsed over two days.
Investors who thought the bubble was over seem to have been comfortable with the loss of just 10% of the value of the company. If you believe bubble danger is over, now looks like an opportunity to buy in a little cheap. Volume was above average in Tesla Motors Inc (NASDAQ:TSLA) as a result.
Twitter? Tweeter? TWTR?
A more unusual story came from Twitter, the micro-blogging social network. The company is planning on going public, but some on the market don’t seem to understand the tenses involved. An over the counter stock with a similar name is surging on today’s market. The reason appears to be a mix up, driven as always by people looking to play the mania.
Tweeter Inc., now trading as TWTR Inc (OTCMKTS:TWTRQ), was a home electronics store that operated in the United States from 1972 until 2007. The company filed for Chapter 11 bankruptcy in that year, and is practically worthless. The entire float had a market value of less than $200,000 before the market went wild.
Shares in TWTR Inc (OTCMKTS:TWTRQ) rose by as much as 1800% on today’s market, though the market has returned to a much more reasonable 685% since. That gives the company a market cap of $1.3 million, not bad for a company that doesn’t do anything in particular.