3 Tech Penny Stocks To Watch This Week
Election day is over yet we still have no confirmed winner. Regardless of this, several sectors are surging and tech stocks are among the bullish movers on Wednesday. When we look at certain trends in the market, you can’t ignore the penny stocks that move in sympathy with these trends. While the SPDR Technology ETF (XLK Report) bumped up to around 4%, there were other stocks under $5 helping give a boost to day-traders across the market.
This has been one of the more beaten-down industries over the last few weeks. Leading up to election day, the XLK, for instance, dropped around 11%. However, over the last 48 hours, things have seen a swift rebound in price and momentum. This isn’t to say that there aren’t potential political headwinds to consider. But right now, if you’re looking for the hot penny stocks to trade, tech is likely an industry to watch. Most major leading companies like Apple (AAPL Stock Report), Amazon (AMZN Stock Report), Microsoft (MSFT Stock Report), and even Nokia (NOK Stock Report) have all jumped higher on Wednesday.
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Marked by some optimism that a clear winner would be revealed soon has helped give some comfort to the markets. There are only a handful of states left undecided with the hope of finding the winner by the end of the week.
Tech Stocks To Watch
- Marathon Patent Group, Inc. (NASDAQ:MARA)
- ElectraMeccanica Vehicles Corp. (NASDAQ:SOLO)
- AYRO, Inc. (NASDAQ:AYRO)
Going into this election cycle, many thought that this could drag out for much longer, which was expected to ebb the markets a bit. For now, however, it would seem that things are status quo. Given the trend, are these penny stocks on your tech stock watch list right now?
Tech Stocks To Watch #1: Marathon Patent Group, Inc.
Marathon Patent Group (MARA Stock Report) is one of the tech penny stocks we’ve followed for a few weeks now. Ever since Apple’s October event, several niches in tech have seen a spike. One of these niches happened to be in cryptocurrency and blockchain penny stocks. Marathon became the center of attention as it has begun ramping up its production capabilities and preparing for 2021’s “mining season”.
A few weeks ago, Marathon signed a contract with Bitmain to purchase another 10,000 Antminer 2-19 Pro ASIC miners. Starting next year, the company expects to receive all miners in tranches with the final coming in June. After fully installed, the new miners will bring Marathon’s mining operations to 23,560 miners total.
The company also has a deal in place with BeowulfEnergy for a 105 Megawatt bitcoin mining data center. The Data Center has the capacity to deploy up to 30,000 S19 Pro Miners that will generate 3.320 EH/s. So this could provide considerable expansion potential for the company according to management.
With continued exposure to quantitative easing measures and the potential for a shaky currency market, some are turning to crypto currency for security. This might’ve been something concerning a few years ago. But the evolution and transparency of several digital currencies and blockchain platforms has brought about somewhat of a renaissance in 2020. MARA stock has continued benefiting from this momentum.
Tech Stocks To Watch #2: ElectraMeccanica Vehicles Corp.
ElectraMeccanica Vehicles Corp. (SOLO Stock Report) is another technology play on the electric vehicle space. While the company has said it isn’t in the market to compete with the likes of Tesla (TSLA Stock Report), traders are looking for renewed potential in lower-priced names. The company’s SOLO car is designed to be an urban commute vehicle with seating for 1 (hence, “SOLO”). Needless to say, the product has already gotten some play on certain shows this year for its futuristic design.
One of the developments that we’ve personally followed is the company’s entrence inthe the U.S. market. Finally, at the end of October, ElectraMeccanica announced the arrival of its first production SOLO EVs and the opening of 6 new retail locations across California. WIth a price-point starting around $18,500, it is one of the less expensive EVs on the market. This is compared to Tesla’s Model 3 or the newly presented Lucid Motors Lucid Air.
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Given the focus during the election on alternative energy, this could be one of the tailwinds to consider on Wednesday. While EV stock hav continued to trend, the campaign trail has highlighted the future opportunities for alternatively powered vehicles. We’ve also seen several initiatives including one by California for a fossil-fuel-less auto industry before 2030.
Tech Stocks To Watch #3: AYRO, Inc.
Somewhat of another tech penny stock to watch is AYRO Inc. (AYRO Stock Report). The company isn’t really one to take a direct approach at the likes of carmakers. However, it is carving its own niche amid the EV penny stocks boom. AYRO builds EVs that service places like university campuses, short-distance distribution, and sports & medical campuses. While the products are much more than “golf carts”, they are “purpose built” and so far, not traditionally something you see driving on main highways right now.
However, recent developments could change certain things. Specifically, AYRO and Karma Automotive’s strategic partnership. Karma produces luxury electric vehicles. Its flagship vehicle is the Karma Revero GT offering a luxury experience to EV shoppers. The new partnership with AYRO will see the two companies forming a strategic manufacturing, engineering, and design partnership. This will utilize Karma’s facilities and pair that with AYRO’s end-user market and engineering expertise.
The end goal focuses on the ability to deliver over 20,000 light-duty trucks and electric delivery vehicles over the next 3 years. According to the company, that could value this program at more than $300 million. While this is still yet to be seen, AYRO has become a focus this week ahead of the company’s upcoming earnings results. Keep in mind that there’ve been several milestones reached by the company but will results meet the expectations in the market as Q3 appeared to be more of a developmental quarter for AYRO in my opinion.
