Grom Social Enterprises Inc. GROM shares are trading higher Thursday after the company announced that it entered into a non-binding letter of intent to acquire gaming industry service provider, Arctic7.
The Details:
Grom did not disclose the terms of the agreement and said it sees the acquisition as a possible entry into the gaming industry.
“The global gaming market represents a $185 billion market opportunity that continues to grow and innovate as represented by Disney’s recent $1.5 billion investment in Epic Games which underscores the opportunity for content-gaming partnerships to deepen the overall consumer connection in their entertainment experiences,” said Grom’s CEO, Darren Marks.
"Grom welcomes the opportunity to bring Arctic7 into the Grom portfolio not only to further fuel Arctic7’s growth in offering both gaming and virtual production capabilities but also so we can explore integrating Arctic7’s expertise into our expanding entertainment ecosystem through content collaboration, cross-promotional opportunities, product licensing, brand partnerships, merchandising, interactive experiences, educational gaming initiatives, and much more,” Marks added.
Should I Sell My GROM Stock?
Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.
Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.
Shares of Grom Social Enterprises GROM have lost 91.95% year to date. This compares to the average annual return of -93.48%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Grom Social Enterprises stock currently has an RSI of 54.42, indicating neutral conditions.
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GROM Price Action: According to Benzinga Pro, Grom Social Enterprises shares are up 41.7% at $1.09 at the time of publication.
Image: Gerd Altmann from Pixabay
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