DatChat (DATS) Stock Jumps After Last Week's Plunge: What's Going On?

DatChat Inc DATS shares climbed 13.9% to $5.50 on Monday, recovering some losses after last week's pullback. Monday’s rally occurred despite no new company-specific updates.

What To Know: Last Wednesday, DatChat shares plunged 64% to $3.22 after announcing a $5.1 million registered direct offering priced at-the-market under Nasdaq rules.

The company said plans to sell 1.2 million shares at $4.25 per share, with Benchmark Company, LLC acting as the sole placement agent. The offering aims to fund working capital and general corporate purposes.

Investors reacted sharply to the announcement, concerned about potential dilution. Monday's surge reflects renewed interest possibly driven by speculative activity.

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How To Buy DATS Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in DatChat’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, DATS has a 52-week high of $9.34 and a 52-week low of $1.01.