Paranovus Entertainment Surges 40.20% Amid Reverse Split Announcement

Paranovus Entertainment Technology Ltd (PAVS) experienced a significant price increase of 40.20%, reaching a 52-week high. This surge comes amid a broader market context where the Nasdaq-100 rose by 1.53% and the S&P 500 gained 0.99%.

The stock's rise is attributed to the announcement of a 1-for-100 reverse share split, effective December 18, 2025, aimed at maintaining compliance with Nasdaq's minimum bid price requirement. This strategic move is part of the company's efforts to enhance market perception and attract investment following its exit from legacy businesses and focus on e-commerce and TikTok-related solutions.

The implications of the reverse split could be significant for investor confidence, as it reduces the number of outstanding shares, potentially increasing the share price. However, the company has cautioned that the post-split price may not reflect the 1-for-100 ratio, which could impact market sentiment.