Direct Digital shares surge 16.07% premarket after 55-to-1 reverse stock split to preserve Nasdaq listing.

Direct Digital (NASDAQ:DRCT) rose 16.07% in premarket trading following the announcement of a 55-to-1 reverse stock split, executed to meet Nasdaq’s minimum bid-price requirements and avoid delisting. The move sharply reduced outstanding shares, signaling management’s commitment to preserving the company’s listing status and restoring investor confidence. While other news items referenced DRCT’s quarterly earnings, credit facilities, or unrelated industry developments, none directly correlate to the premarket surge. The reverse split is the primary catalyst, as it addresses immediate regulatory risks and may stabilize the stock’s valuation trajectory.