His tweets might’ve made penny stock H&H Imports a cool $50 million in a single weekend earlier this week, but now 50 Cent’s silence is likely the cause of its decline: the stock has dropped by 36% since he stopped tweeting purchase recommendations to his followers.
With 3.8 million fans listening eagerly to his stock advice on his Twitter account this weekend, 50 Cent was able to use his influence to grow a penny stock – which he had a vested interest in – by $0.29. This earned him nearly $10 million, and saw the stock itself go up to $50 million.
Whether due to a lack of interest or some advice from his lawyers, 50 Cent has since stopped promoting H&H Imports as a good stock investment for his Twitter followers. And the stock paid the price.
The New York Post first reported the drop in HNHI’s stock this morning. Soaring from 10 cents a share up to 39 cents when 50 Cent was tweeting, it has now dropped to 25 cents a share.
Take a look at the Yahoo! Finance graph charting the rise and fall of HNHI below:
It looks like the momentum that HNHI gained was purely a result of 50 Cent’s Twitter influence.
Would you ever invest in a stock based on a recommendation from a celebrity you follow on Twitter?