The meme stock phenomenon that started in early 2021 was thought by many to be temporary. But the price action in Paltalk Inc (NASDAQ: PALT) on Wednesday suggests retail traders are keeping it alive to date.
Paltalk stock notes a sharp increase in trading volume
Shares of Paltalk Inc more than doubled this morning to trade at $13. The stock had started the year at $1.59 a share. The New York-based software firm that offers video group chat service is now valued at $109 million.
The massive move in the stock on Wednesday is not attributed to a company-specific news but only to a sharp increase in the trading volume as the Redditt community picked it for the next short squeeze.
As of the time of writing, Paltalk has traded more than 85 million shares already compared to its average daily trading volume of close to 0.7 million only.
Paltalk moved its listing to Nasdaq Capital Market
Last month, Paltalk moved its listing to the Nasdaq Capital Market and raised roughly $3.5 million in net proceeds from an underwritten public offering of more than 1.3 million shares at $3.00 a share.
Also in August, the U.S. firm said its net income in the fiscal second quarter jumped nearly 50% on a year-over-year basis. Q2 revenue, however, was up only 1.0%.
InvestorsObserver rates Paltalk at 91 in the software application space, which means the stock beats 91% of its industry peers. Overall, it has a rating of 60.
The post Paltalk shares are up more than 100% on Wednesday: here’s why appeared first on Invezz.
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Wajeeh Khan
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