One of the most volatile stocks in the market today is that of Troika Media (NASDAQ:TRKA). Indeed, this morning, TRKA stock nearly doubled to $3.25 from yesterday’s close of $1.64. Currently, shares of this brand consulting and marketing agency have settled down to “mere” gains of around 14% at the time of writing.
Any sort of outsized move like this in a given stock is worth diving into. Indeed, social media interest on Troika and other penny stocks in the media space have begun to pick up. Given what we’ve seen this year with how retail investor interest can drive performance among penny stocks, TRKA stock is one of a few investors seem to have on their radar today.
In the absence of any real news, Troika is seeing what appears to be speculative interest today. Let’s dive into what’s driving this media stock higher right now.
TRKA Stock Surges on Trump SPAC Deal
The valuation models of various media-related companies are being adjusted today. And for good reason.
Yesterday’s announced news that former President Donald Trump’s Trump Media & Technology Group (TMTG) will go public via a SPAC (special purpose acquisition company) merger with Digital World Acquisitions (NASDAQ:DWAC) put this sector on watch for investors. The SPAC merger will bring the Truth Social platform public. Indeed, the moves in the past two days with DWAC stock have been incredible. This is a SPAC that has gone from trading around $10 per share to the $115 level in short order. Accordingly, investors appear to have braced for similar moves among other small-cap media stocks of late.
What appears to be entirely speculative moves in TRKA stock and other small-cap media plays makes sense. Investors are pricing in the potential for more speculative buying. Indeed, as we’ve seen in recent months, anything’s possible.
However, investors should note that given this speculative momentum, significant downside could materialize. Accordingly, TRKA stock looks to be one for only those with a risk tolerance to handle the near-term volatility that may materialize.
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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.
