Paltalk (PALT) calls itself a software innovator and a leader in digital communications that powers multimedia applications. DatChat (DATS) has also been enjoying a recent run, which an analyst claims have no revenue and is overvalued.
However, Paltalk may be different. Paltalk began trading on the Nasdaq in early August 2023. It’s been mostly in the green since then, but it hasn’t seen much growth until today, with shares falling to $2.95 last week after staying around $3.50 for much of the previous month.
Why is PALT stock exploding right now? DatChat appears to have received a lot of attention on social media recently, and this looks to be spreading to Paltalk, the communication platform’s much smaller competitor.
Reddit users have also caught on and have been working hard to send it skyrocketing, particularly on the company-specific forum r/PALT.
As we all know, social media buzz does not correspond with a stock’s prospects for long-term sustainable development. This appears to be another flash-in-the-pan situation in which a stock temporarily catches fire due to superficial attention and then fizzles out as fast as it flared up.
The stock is already reversing, and while there is still time remaining in the day, this speaks to another classic social media pump. Simply being included to a major index isn’t generally enough to keep a company on track for the kind of increase we’ve witnessed recently.
Furthermore, Paltalk is a modest firm with a market value of slightly more than $40 million. It is not unreasonable to believe that it may expand, but it will be difficult to be very hopeful until we see actual advances.
