Jaxsta Shares Rock the Microcap Sector with a 342% Gain (ASX:JXT)

It’s not uncommon to see double-digit share price gains.

Every day we see stocks, big or small, making sizeable moves.

But, what are uncommon are triple-digit returns. The kind of move that can be life changing.

Today, Jaxsta Ltd [ASX:JXT] is a part of this elusive club. With the JXT share price roaring 342.31% higher at time of writing.

Needless to say, it’s not every day that you see this kind of action. But it is proof of the kind of returns that can be found in the small and microcap markets.

But enough semantics; let’s dive into the reason for this astronomical result.

A lucrative tone

Jaxsta is quite the peculiar company.

They classify themselves as a ‘music technology’ outfit. Aiming to provide a ‘comprehensive’ and ‘official’ database for music credits.

In other words, no matter how a song or piece of music was made, Jaxsta can tell you who was behind it. Be it the artist, producer, mixer, songwriter, sound engineer…the list goes on.

For everyday people, like you and I, this information may seem largely superfluous.

But for the music industry as a whole, and for royalty payments, this information is pivotal. Ensuring that the people, who put in the time and effort to make music that we love, get paid for it.

It’s certainly a niche business model, but it hasn’t gone unnoticed.

As of today, Jaxsta has now partnered with Songtradr. The largest B2B music-licensing marketplace in the world!

More than that, Songtradr has agreed to invest $1.42 million in Jaxsta. A sizeable sum for a stock with $20 million market cap.

What this means is that Jaxsta’s customer (referred to as ‘Pro members’) will gain access to Songtradr’s platform — and vice versa.

As Jaxsta’s CEO, Jacqui Schoorl notes, this could be their big breakthrough:

We are thrilled to be partnering with the team at Songtradr. We believe this new revenue-generating product will also drive increased adoption of Jaxsta Pro subscriptions.

This partnership with Songtradr highlights the significant opportunities that exist in solving the data-centric challenges faced by the music industry. The partnership allows Songtradr to provide an enhanced global product leveraging the use of official metadata only available through Jaxsta.

For that reason, it’s easy to see why the market has gotten so excited. Driving the share price to its incredible heights.

Whether or not they can build on this momentum though, is the real question.

Finding the rhythm

As with any company this small, it is hard to tell what lies in store for Jaxsta.

Today’s partnership though is a huge first step. Not only for investors, but the fundamental nature of their business.

It isn’t a stretch to say that Jaxsta is an experimental stock. And their short history on the ASX has reflected that. Reaching dizzying highs in early 2019 and crushing lows in early 2020.

Now though, after months of being in the doldrums, Jaxsta could be back on track.

At the very least, they’ve dished up an impressive one-day return.

The kind of explosive potential that can only be found in micro and small-cap stocks. For more picks like Jaxsta, check out our report on the hottest ‘high-potential’ trends in the market right now.

You can read it for free, including three explosive stock picks, right here.

Because as Jaxsta has shown, the market is ripe for some incredible gains, as long as you know where to find them.

Regards,

Ryan Clarkson-Ledward,
For Money Morning 


Ryan Clarkson-Ledward is one of Money Morning’s analysts.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan’s primary focus is assisting Sam Volkering with background research and insight for readers by dissecting the latest events affecting the world. Working closely with Sam, they explore the latest in small-cap and technology stocks as well as cryptocurrency opportunities.

You can find Ryan’s contributing research, developments, and supporting information across several e-letters, including:


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