GROM Stock: 2 Big Reasons Grom Social Is Soaring Higher Today

With so many eyes turned to updates in the Facebook (NASDAQ:FB) whistleblower saga and movements like #DeleteFacebook gaining steam, some lesser-known platforms are looking to seize market share. One such company is Grom Social Enterprises (NASDAQ:GROM). On Thursday, GROM stock rocketed higher by 49.6%, fueled by a move away from Facebook as well as a few other catalysts.

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What Happened With GROM Stock

A week ago, GROM stock saw gains of an impressive magnitude, at one point spiking by more than 200%. These gains were attributed to the stock moving in sympathy with competitor Paltalk (NASDAQ:PALT), another digital communication innovator which saw its shares rally that day. It’s clear that such a phenomenon is not the case today, though, as PALT stock closed down almost 15.5% as of this writing. The same goes for peer Yalla Group (NYSE:YALA), whose shares closed down 4.5%.

What’s Going On

Why then did GROM stock up gain so much today? Mostly because of two key developments that both bode well for the company.

The first is an announcement. Today Benzinga reported that its recently acquired media production venture Curiosity Ink Media is at work on a new project titled The Pirate Princess, “an original intellectual property franchise slated for global theatrical distribution” in the later half of 2022. It will be debuted as a graphic novel, intended to be a “springboard for a film.”

The second involves a social media trend. Short squeeze intelligence platform Fintel has shown that the company has zero shares available to short. As of now, Grom’s dark pool short volume ratio is higher than 46%.

This type of liquidity refers to the type of trading volume generated by institutional orders issued on private exchange platforms. The development at play has digital investment communities watching closely and raising the type of chatter that helps drive a stock upward.

Why It Matters

 The aforementioned reasons give investors plenty of cause to watch GROM stock, but there are plenty of others.

We also shouldn’t forget the landscape Grom exists in. Social media is changing, and the Facebook saga suggests regulation is approaching. Young people want platforms to build and share their original content and it is becoming increasingly clear that they are best served with platforms geared specifically to their interests. Grom appears to be filling a market need, particularly as parents are presented with more and more reasons not to let their children use Facebook and Instagram.

GROM stock has dealt with some volatility lately, but it has also seen tremendous gains. As the social media landscape gradually shifts, this is a name worth watching carefully.

On the date of publication, Samuel O’Brient 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 Publishing Guidelines.

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Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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