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DATS Stock Alert: Latest Acquisition News Sends DatChat Soaring Today

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It’s been a busy week for DatChat (NASDAQ:DAT), and it’s not even over. Yesterday, the alternative social media platform announced that it was venturing into the non-fungible token (NFT) security space. Today, he has taken this mission a step further. DatChat has signed a letter of intent to acquire Avila Security Corporation. The move will mean a significant expansion of its holdings in the blockchain and user data security spaces. DATS stock did not react well to yesterday’s news, but the tides have changed. Both companies have something to celebrate today.

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What’s going on with DATS stocks?

Yesterday started with the announcement of DatChat’s Web 3.0 platform initiative. Although this seemed like good news, DATS stock initially failed to react to it, slipping into the red. Today’s news made it clear to Wall Street that DatChat is making big plans to gain share of a booming market. As of this writing, DATS stock is up 23% on the day. He shot early and didn’t slip.

This morning’s gains pushed the DATS into the green over 40% for the week and 23% for the month. Investors saw the stock spend the last month of 2021 down, dropping as much as 22%. This type of growth should be reassuring.

Although the deal is yet to be finalized, it includes “$1 million in cash and the largest of 739,650 restricted common shares.”

why is it important

These back-to-back announcements undeniably make one thing clear: DatChat takes blockchain security seriously. The company has made a name for itself by offering secure social media and messaging options. She now recognized that her technology could be applied to a new market, a market full of potential. According to a statement released two days ago, the company is focused on building a “decentralized ad network for Web 3.0 and Metaverse applications.”

The successful acquisition of Avila will expand DatChat’s intellectual property assets to include both blockchain-based digital rights management and object sharing technology. This decision also makes sense for the communication aspect of the business. Avila’s assets also include WebRTC encrypted real-time video and audio communications. By acquiring this little-known company, DatChat strengthens both old and new components of its business.

Markets for enhanced digital security in communications and storage of digital assets are booming. Sales of NFTs are increasing, but as they do, so is theft and fraud in space. Additionally, web 3.0 and metaverse applications will only help drive stock prices higher as both markets heat up in 2022. InvestorPlace’s Luke Lango predicts that in 2022, metaverse stocks will see the kind of growth the electric vehicle (EV) industry saw in 2021. If DatChat continues this kind of progress, it could be among the metaverse stocks destined for growth in the coming year.

What this means

When a company announces two major deals in the same space in the same week, investors should pay attention. The second deal is not finalized, but DatChat has proven it means business when it comes to these digital expansions. He sees several hot markets and strategically plans ways to get share of both.

NFT security, crypto social media and metaverse technology will be three of the hottest sectors in 2022. If you’re bullish on one or all three, DATS stocks should be on your radar.

As of the date of publication, Samuel O’Brient had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

DATS Stock Alert: Latest Acquisition News Sends DatChat Soaring Today

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