Technology Penny Stocks To Buy
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Technology stocks have reached evaluations that many analysts now term sky-high and in dire need of correction. Of the top ten companies on the S&P 500 Index in terms of market capitalization, seven are technology firms, like Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), and Facebook, Inc. (NASDAQ: FB). These account for more than 23% of the total index by weightage. David Bahnsen, the chief investment officer of The Bahnsen Group, an investment firm based in California, said earlier this year that tech stocks were poised for a reprice after meteoric gains during the pandemic that pushed valuations too high.
Amid fears of inflation and a drop in the prices of cryptocurrencies because of regulatory concerns, investors who have poured money into the tech sector or those hoping for an inroad into the highest growth sector of the market are nervous about betting on overvalued firms. For these, investments in heavily traded tech penny stocks might be the solution. According to CNBC business news correspondent Bob Pisani, the average trading volumes at the NASDAQ have more than doubled from 7 billion in 2019 to over 14 billion at the beginning of this year.
This statistic highlights the influence of retail investors on the market and the rise of penny stocks they seem to favor, most of which are in the tech sector since it offers explosive growth potential compared to the other industries. Some of the technology penny stocks presently popular on Reddit include eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA). These and others like them are discussed in detail below.
With this context in mind, here is our list of the 10 tech penny stocks Reddit is buying. These were ranked keeping in mind the number of mentions on Reddit, analyst ratings, hedge fund sentiment, and basic business fundamentals.
Creative Realities, Inc. (NASDAQ: CREX) is placed tenth on our list of 10 tech penny stocks Reddit is buying. The firm is headquartered in Kentucky and provides digital marketing technology solutions. The company has a market cap of $19 million and posted more than $17 million in revenue last year. Some of the services it offers include digital merchandising, customer engagement, and interactive marketing technologies. It markets these services to a whole range of retail and manufacturing businesses.
Just like Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA), Creative Realities, Inc. (NASDAQ: CREX) is one of the tech stocks Reddit is buying.
Vinco Ventures, Inc. (NASDAQ: BBIG) is ranked ninth on our list of 10 tech penny stocks Reddit is buying. The firm operates from Pennsylvania and markets consumer product research and development services. It was founded in 2017. The firm has a market cap of over $184 million and posted more than $15.7 million in revenue last year. It has operations in Europe and the Asia Pacific in addition to the United States and Canada. The firm markets various products to retailers and distributors through ecommerce channels.
Alongside Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA), Vinco Ventures, Inc. (NASDAQ: BBIG) is one of the tech stocks Reddit is buying.
AmpliTech Group, Inc. (NASDAQ: AMPG) is a New York-based firm that makes and sells microwave component-based amplifiers. It is placed eighth on our list of 10 tech penny stocks Reddit is buying. On July 29, the firm announced that it had won a follow-up $0.5 million order for Low Noise Amplifiers marketed by the firm that are being used by a high-speed broadband provider. The company will begin shipping the product to the broadband firm this year. The amplifiers are used in satellite ground stations.
In addition to Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA), AmpliTech Group, Inc. (NASDAQ: AMPG) is one of the tech stocks Reddit is buying.
Super League Gaming, Inc. (NASDAQ: SLGG) is a California-based firm that owns and runs a video gaming and esports platform. It is ranked seventh on our list of 10 tech penny stocks Reddit is buying. The firm recently joined the Russell Microcap Index. It has a market cap of close to $150 million and posted more than $2 million in revenue last year. The firm was founded in 2014 and employs around 47 people. The company is famous for Minehut, a social gaming portal frequented by Minecraft players.
Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA) are some of the tech stocks Reddit is buying, just like Super League Gaming, Inc. (NASDAQ: SLGG).
Boxlight Corporation (NASDAQ: BOXL) is placed sixth on our list of 10 tech penny stocks Reddit is buying. The firm operates from Georgia and is in the education technology business. It sells interactive classroom solutions. In the wake of the pandemic crisis, the business of the firm has really taken off. It beat market expectations on revenue for the first quarter and has also joined the Russell Microcap Index. In April, the New York State Office of General Service announced that it would be extending a two-year equipment deal with Boxlight.
Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA) are some of the tech stocks Reddit is buying, alongside Boxlight Corporation (NASDAQ: BOXL).
Technology has some of the fastest-growing sub-industries today, making penny stocks in the sector very attractive. However, penny stocks are often associated with low liquidity, a lack of listing on more prestigious stock exchanges, and avoidance from leading trading platforms - but that's not the whole story.
The company was founded by two ex-Apple engineers. These are some of the reasons tech penny stock investors expect Aeva to succeed in the long run, especially as the ban on fossil fuel vehicles approaches.
Although in the penny stock category, WKHS was once valued at over $40. However, with states looking to ban all new gas-powered vehicle sales by 2035, the electric truck maker is one of many EV manufacturers enjoying a windfall.
From a revenue of $18 million in 2022, Analysts expect Workhorse to generate $127 million in revenue for 2023 and $325 million for 2024. This means that the beaten-down WKHS could be one of the next tech penny stocks to rise.
Combining an intuitive platform with no-commission trading and a far-reaching market exposure, eToro is an excellent choice for trading low-cost technology equities. The platform does not allow OTC trading, yet its stock catalog is wide ranging and updated regularly. While its research capabilities are limited for many, it includes filtering by sector and price, meaning that it comes handy when curating a list of low-cost tech equities. Using its social trading functionalities, which allow mimicking successful traders and include social feeds on every asset page, traders can discuss ideas and exchange tips, which is a great asset when trading volatile securities.
Operating since 1930, Fidelity Investment is one of the most established financial institutions in the country and rated as one of the best brokerage platforms for tech penny stocks as it offers a dedicated Over-the-Counter Bulletin Board (OTCBB) section.
Penny stocks typically refer to the stock of small public companies that trade at a very low price and often have a low market cap. Penny stocks belong to companies that are either very small or newly listed.
In the past, people considered penny stocks to be any that traded for less than $1 per share. However, the U.S. Securities and Exchange Commission (SEC) has modified the definition of penny stocks to include all shares of companies that trade under $5. Note that in other countries, the highest share value of penny stocks may be lower, like in the United Kingdom, where they are capped at 1. In the U.S. they have a market cap of $300 million, compared to the 100 million in the U.K.
Many investors are attracted to penny stocks because they believe there is room for appreciation. The general sentiment is that the small company will grow over time, increasing its investments and returns. Thus, they are considered a great way to make quick returns by investing small amounts of capital.
The second reason is common among inexperienced investors. Many of them believe that blue chip stocks like Walmart (WMT), Microsoft (MSFT), and Apple (AAPL) started as penny stocks. While you may find penny stocks that grew to become large companies, many large companies did not start as penny stocks.
One of the major barriers that have prevented people from investing in the stock markets is insufficient funds, given the high cost of blue chip stocks. Many with pockets not deep enough for blue chip stocks often consider tech penny stocks a sure-fire way to break into stock trading.
Trading with such platforms increases the safety of your funds when compared to over-the-counter trading platforms. Always do your due diligence before choosing a trading platform. While trading on registered platforms reduces the risks associated with trading penny stocks, they are not entirely risk-free. This is primarily because trading financial markets carry inherent risks, such as market volatility, regulatory changes, and the possibility of fraud.
eToro is among the best trading platforms for penny stock traders. It caters to traders of all levels, providing various investment options and resources, such as educational materials, and easy-to-use mobile and web-based trading platforms. 59ce067264
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