Ethereum pulls crypto traders to furniture stock ETH — it’s been rallying too
Ethan Allen has nothing to do with Ethereum — it’s an 89-year-old furniture stock — but the company is experiencing a surge in interest from crypto traders, reports the Wall Street Journal.
Crypto traders have now overrun a Yahoo! Finance message board for Vermont-based furniture chain Ethan Allen and hijacked the conversation with hype.
- Ethan Allen stock is up nearly 50% year-to-date.
- Ethereum‘s price has jumped over 200% in the same period.
- Ethan Allen does not accept cryptocurrency.
Retail investor interest in Ethan Allen does seem to be increasing, but there’s legitimate reasons for the stock’s upward movement, too.
Revenue is rising, as are profits. Ether Allen reported $177 million revenue last quarter — up 18% year-on-year.
One analyst unit upgraded ETH to a buy earlier this month.
Mistakes, but profitable
Still, it’s not uncommon for investors to mistakenly purchase shares in the wrong businesses.
Last year, penny biotech stock Tiziana Life Sciences saw its share price multiply despite minimal revenue.
At the time, the running theory was investors confused its TLSA ticker symbol with electric car giant Tesla (TSLA). Tiziana stock sprung from $2.80 to $11 in seven months.
Others like Long Island Blockchain try to dupe traders looking to capitalize on crypto hype.
[Read More: Disney sees blockchain replacing watermarks to fight film piracy]
But it’s worth noting Ethan Allen isn’t doing that — the business was established in 1932 and listed on the NASDAQ in 1993.
Yep, Ethan Allen got its ETH ticker a year before Ethereum co-founder Vitalik Buterin was born.
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