You may not be familiar with penny stock Datasea (NASDAQ:DTSS), but the company is determined you will hear about it now. On Thursday, DTSS stock rocketed higher by more than 80% on some big news. So what do you need to know right now?
Essentially, Datasea is a company all about smart security solutions and education technology. Today, it is also launching itself into the red-hot world of 5G. That new business venture is exactly what has investors paying attention.
With that in mind, here is what you need to know about Datasea and DTSS stock now:
- Datasea has been around since 2014, and was previously known as Rose Rock.
- Investors should note that Datasea calls Beijing its home, and specializes in providing security solutions to the Chinese market.
- Importantly, it has received certification as a Zhongguancun High Tech Enterprise for the quality of its solutions.
- These solutions include smart 3D security, campus security, public community security and an epidemic security system.
- Datasea targets customers including school systems, tourist attractions and public communities, using its sales team to expand its reach.
- Additionally, Datasea markets education technology tools for college campuses like cloud platforms and science education platforms.
- On Thursday, Datasea announced it was launching a new subsidiary Shuhai Zhangxun Information Technology.
- This subsidiary will focus on 5G field and 5G value-added services, and is behind the rise in DTSS stock today.
- Importantly, the company thinks Shuhai Zhangxun will be a good way to combine its existing work with new opportunities.
- For instance, it wants to move into the realm of 5G messaging through some of its existing secure platform solutions.
- Investors likely see Datasea as a ground-floor opportunity in 5G.
Datasea 5G and DTSS Stock
So what else do you need to know about Datasea and DTSS stock? Importantly, investors should be aware that Datasea exists in the land of penny stocks. Even after an 80%-plus rally, shares are currently trading hands for less than $5. While that does not negate the potential here, it does mean that anyone interested in DTSS stock should do their own research.
Beyond that though, interested investors should make sure to read up on the market opportunity. There is no denying that 5G is a top theme for 2021 and beyond. As major companies continue rolling out the latest tech, the landscape as we know it is changing. Specifically for Datasea and DTSS stock, there is also a reason to believe 5G messaging is a significant opening. According to the company, 90 mobile network operators have launched 5G messaging, also known as rich communication services. By the end of 2021, those network operators will be participating in a market worth $74 billion.
For Datasea and DTSS stock then, a slice of that pie could take shares above $5. However, as with any penny stock, proceed with caution.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
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