Recently, news of Twitter’s impending move towards becoming a publicly traded company prompted a 684% increase in the penny stock called “Tweeter”. Call them overenthusiastic or just plain ignorant, buyers last Friday were fighting for the chance to buy shares of the previously bankrupt electronics company Tweeter. Shockingly in this circumstance these oblivious buyers actually set themselves up for an impressive and astoundingly high rate of return. If they bought the penny stock at the original price of 2 cents per share and sold it at the peak, about fourteen cents per share, they could have made an inexplicable amount of profit.
Of course, this freak incident is just that, an accident that turned out to have a silver lining for those with a savvy business sense or really any sense at all. This is not an example of miraculous marketing or an awe inspiring value proposition, it’s simply some uninformed investors making a rather humorous mistake. What this reveals about the stock market is that the people really can have an impressive influence in the fluctuation of a company’s stock value. This in turn demonstrates that a strong marketing campaign that captures the buyer’s attention can boost a company’s profits.