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GROM Stock Alert: 2 Big Reasons Little-Known Grom Social Is Soaring


One of the hot stocks investors are watching closely today is Grom Social (NASDAQ:GROM). Indeed, GROM stock is up more than 17% at the time of writing on very heavy volume. Currently, approximately four times the average daily volume of shares have traded thus far with this social news stock.

GROM stock: a phone displaying the GROM social network app page in the app store
Source: Postmodern Studio / Shutterstock

Grom’s status as a platform utilized by children under the age of 13 has generated a lot of interest recently. Indeed, given the various concerns around rival social media platforms such as Facebook (NASDAQ:FB) with regard to the health and wellness of youth, Grom Social has found a very unique and enticing niche for investors.

Today, the company has made waves for two specific reasons. Let’s dive into what’s driving interest in GROM stock right now.

GROM Stock Surges on Two Key Catalysts

The first catalyst driving Grom Social higher today is related to the company’s business model. As mentioned, Grom’s status as a children-friendly social media platform is intriguing in its own right. However, today the company announced plans to increase its safety features on its platform. The safety updates provide additional parental control options for parents to monitor their children’s social media use.

This move is an obvious win-win for the company and its users. Peace of mind is a very big deal in this niche segment. Accordingly, Grom’s status as a safe place for kids to interact online is bolstered by this announcement.

Secondly, Grom Social announced today the company has increased its private placement amount. This increase provides for a secondary investment of up to $6 million, to provide for potential total funding of $10.4 million. This private placement is a convertible note offering, which provides for debt to be converted to equity should the company’s share price breach $4.20. Given the fact that shares of GROM stock traded as high as $6.65 today, there’s a high likelihood this debt could be exercised at some point in time.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

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.

Article printed from InvestorPlace Media, https://investorplace.com/2021/10/grom-stock-alert-2-big-reasons-little-known-grom-social-is-soaring/.

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