What’s going on with Grom Social (NASDAQ:GROM)? Shares of GROM stock are up over 45% today on seemingly no news. Grom operates as a social media and entertainment platform for kids. On the platform, users can stream videos, message other users, and gain access to exclusive content. Grom was added to the Nasdaq Exchange last year at a public offering price of $4.15.
Furthermore, GROM stock has been picking up steam from retail traders. On Stocktwits, mentions of the GROM ticker have increased by over 300%. So, why exactly is Grom Social up today?
Why Is GROM Stock Up Today?
It appears that Grom is trading higher in response to an interview with CEO Darren Marks and president Paul Ward. During the interview, Marks and Ward laid out their vision for the company and how it plans to compete with bigger media giants. Marks explained that Grom has four pillars: Grom Social, Grom Education, Top Draw Animation, and Curiosity Ink Media. Curiosity is Grom’s most recent acquisition, and it is led by former Nickelodeon (Nick) president Russell Hicks. At Nick, Hicks helped turn shows like SpongeBob SquarePants and Dora the Explorer into popular kids shows. Ward was also previously employed at Nick as well and seeks to use the “blueprints applied at Nick” to help Grom become a better company.
With the acquisition of Curiosity, Ward seeks to “put rich storytelling front and center.” Curiosity is currently in the process of developing Baldwin’s Big Adventure, which centers on the adventures of a talking train. Additionally, Curiosity plans on debuting a graphic novel called Thunderous this April. Ward adds that the company’s four pillars should create synergy within Grom.
What’s Next For Grom Social?
Grom Social is not in the “habit of issuing financial guidance.” However, Ward states that he is very confident in Top Draw. He adds that Top Draw is “doing great and the stars are aligned for it to resume pre-covid production levels.” In addition, Marks believes that as revenue grows, gross profit margin and operating income should grow as well, which demonstrates operating leverage.
While Marks did not disclose any potential future acquisitions, he commented that “We are constantly taking a hard look at acquisitions, partnerships or synergistic opportunities that we think complement our portfolio.”
Investors should note that another kid-focused company, Kidpik (NASDAQ:PIK), has been experiencing share price gains this week as well.
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On the date of publication, Eddie Pan did not hold (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.