Today, DatChat (NASDAQ:DATS) is the latest stock to see a boost as a result of yesterday’s big news. Former President Donald Trump’s Truth Social conservative media platform is looking to go public via a reverse merger with special purpose acquisition company (SPAC) Digital World Acquisitions (NASDAQ:DWAC). This deal has boosted various media stocks, including DATS stock, in a big way today.
Currently, DATS stock is trading around 12% above yesterday’s close. However, at one point today, investor interest in DatChat drove shares of this company more than 50% higher. What appears to be a speculative surge among media stocks is at play right now.
While shares of these companies that have gone parabolic this morning have settled down in early afternoon trading, these moves are noteworthy. It appears investors are grouping various stocks together as speculative vehicles to capture value from yesterday’s news. In DatChat’s case, many on social media are speculating that in order for Truth Social to be launched, some platform like DatChat will need to be involved to make this happen.
Given DatChat’s status as a decentralized open platform based on the blockchain, this thesis appears to hold some water.
However, DATS stock looks to be very speculative right now. The company’s volatility today speaks volumes.
Let’s dive into a few things investors may want to know about what’s transpiring today with DatChat.
What to Know As DATS Stock Surges Today
- Yesterday, the Trump Media & Technology Group (TMTG) announced plans to go public.
- This initial public offering (IPO) will be a reverse SPAC merger with Digital World Acquisitions, a move that has garnered tremendous attention of late.
- The announcement resulted in DWAC stock soaring more than 1,000% over two trading days.
- Accordingly, investors looking for ancillary plays on this move have sought out other media stocks.
- Given DatChat’s decentralized social media platform focused on privacy, DatChat has garnered attention.
- However, this attention appears to be without any viable news.
- Accordingly, DATS stock has moved violently today with its volatile price action.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.