If you’ve traded penny stocks for at least the last year, there’s probably little that shocks you at this point. Since the beginning of 2021, we’ve seen previously failing companies like AMC Entertainment (NYSE: AMC) go from being just another penny stock to one trading as high as $72. We’ve also seen notable investors jump into these volatile waters.
Penny Stocks TL;DR 30-Second Overview
Popular TikTok Alternative, Triller Goes Public Via Reverse Merger With SeaChange International (NASDAQ: SEAC)This marks the latest deal bringing attention to the small-cap arenaToday we look at 3 more penny stocks to watch after this landmark deal
Does this come as a surprise? This year there’s been a slew of new companies taking on the likes of Meta’s Facebook (NASDAQ: FB), Twitter (NYSE: TWTR), and Snap Inc. (NASDAQ: SNAP). In particular, the debut of former President Donald Trump’s Truth Social started to make waves as many former Facebook users gravitated away from the platform’s new rules. Truth is set to debut in the public market through a SPAC deal with Digital World Acquisition Corp. (NASDAQ: DWAC).
This was one of the most significant breakout stocks of the quarter following news that a deal could be in the works. DWAC stock ended up explosively rallying from around $10 to highs of $175 within a few days. While the market has settled a bit since then, it didn’t negate the attention that alternative social media platforms have received lately.
Triller Goes Public Via Reverse Merger With SeaChange International (NASDAQ: SEAC)
TikTok alternative, Triller, is the latest social media company to try its hand at the social media stock trend. We discussed this proposed deal earlier in the month in our article Best Penny Stocks to Buy Right Now? 3 to Watch as 2021 Ends.
“Currently, there are talks between SeaChange International and the video platform Triller for a potential merger, although nothing has been confirmed.”
This week, those details came to a head after SeaChange confirmed that it has entered into a definitive agreement and plan of merger with Triller Holdco. The initial goal will be to advance digital advertising with TrillerVerz. According to the company, this deal is expected to result in a combined company valued at roughly $5 billion.
The TrillerVerz platform drives more than 750 million user interactions per month, reflecting 2x year-over-year growth in user engagement and 5.3x year-over-year growth in the number of paying users, which TrillerVerz believes places it in the upper echelon of social media platforms globally. With today’s news, TrillerVerz and SeaChange believe they are set to take a significant step forward in their goal.
SeaChange December 22, 2021 PR
Since the end of November, SEAC stock has climbed from under $1 to over $2 as of Tuesday. With this news, shares of SeaChange added another 60%. Once the deal is closed (expected next quarter), the company will change its name and symbol to TrillerVerz Corp. and ILLR.
Social Media Penny Stocks To Watch
DatChat Inc. (NASDAQ: DATS)
Ever since making its public debut, DatChat has been on our list of penny stocks to watch. The alternative social and chat technology company continues captivating retail traders for its privacy technology. Earlier this quarter, DatChat began a branding and awareness initiative, which seems to have paid off recently.
The company and BarStool agreed to a multi-channel marketing campaign in October. A new tweet from the “Davie Day Trader” media company helped solidify this initiative. The popular media outlet mentioned DatChat’s handle in a caption that read, “Next time use the @datchatapp, and it’s message destruction feature,” with a download link.
In addition, developments at the end of November also place the company in another very active vertical of the tech arena: digital assets. DatChat released its Nirad Points Rewards Program. According to the company, “Using a ‘Proof of Participation’ protocol, users can earn NRD Points through active participation on the DatChat Social Network+ platform, including creating an account, daily login, adding friends, allowing advertisements, and growing your DatChat network. NRD Points may be used for premium services, upgrades, and eCommerce on the DatChat Social Network+ platform.” – Read More About NRD Points
With the market turning around this week and new attention on alternative social stocks, DATS could be one to watch right now.
Paltalk Inc. (NASDAQ: PALT)
Paltalk, another chat and social media company, got some play during the year’s second half. The initial spark came in September as the company made its way from the OTC to the NASDAQ exchange. Some traders assume that most are only on the Over-The-Counter exchange when it comes to popular penny stocks. However, as I’m sure you’ve figured out by now, that isn’t the case, and an uplist from a minor to a major like the Nasdaq tends to bring added interest.
How is Paltalk involved in this emerging social trend? The company offers communications software for social applications. Its portfolio includes Paltalk and Camfrog, which host a collection of video-based communities. Paltalk also provides services like Vumber for virtual calling and virtual phone number services on a subscription basis.
Similar to DatChat, Paltalk also has a digital asset angle. It may not be prevalent in recent filings, but look at its updated investment deck, and you’ll see the mention of Props. This is a loyalty platform that deploys community digital tokens. According to the company, “The loyalty platform is intended to drive engagement and incentivize users financially by
providing users with the ability to earn Props tokens while using the Paltalk and Camfrog
It also briefly discusses “virtual gifts” as one of its revenue streams. Considering the recent attention on things like NFTs and cryptocurrencies, PALT stock has exposure to multiple verticals.
Limelight Networks (NASDAQ: LLNW)
While it doesn’t have a core focus on social media, Limelight Networks focuses on digital experiences. The company offers private global network access to allow its clients to bypass internet congestion and optimize content for high-performance use. This includes live-streamed events, movies, video games, or file downloads.
In its most recent update, the company noted that NTT DOCOMO, INC, adopted its EdgeXtend. This is one of Japan’s leading mobile operators, and the new adoption helped DOCOMO expand its content business for improved user experiences across Japan. This was just one of several developments that have helped with Limelight’s growth.
Looking ahead, the company seems optimistic based on forward guidance given in its Q3 update. Bob Lyons, President, and Chief Executive Officer explained, “Based on forecasts from our larger clients and their view of their content…we believe the fourth quarter will represent a return to both sequential and year over year growth; with this traction and new products to be launched over the next few months, we are also accelerating investments in rebuilding our sales team.”
With this brighter outlook, it will be important to see how Limelight executed its model based on its final earnings report of the year.
Tech Penny Stocks To Watch
When it comes to tech, penny stocks are always a popular topic. With new trends emerging from smaller companies, it seems fitting that this is the case. Like all things, make sure you know which trends and catalysts are propelling certain stocks.
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