Hot Tech Penny Stocks To Watch This Month
One of the hottest sectors for penny stocks recently has been technology. But not just any tech. We’ve seen attention focus on things like telecommunications, broadcasting, and even esports technology. One of the main reasons for this has been the push for growth in digital entertainment. Thanks to the 2020 pandemic, the entertainment industry as a whole ended up evolving. Not only are we seeing attention focus on things like esports and iGaming, but also on different ways to access or even consume this new digital form of entertainment.
Adding to this was a very recent IPO of popular digital platform gaming developer Roblox (NYSE: RBLX). If you haven’t heard about this company, I’ll get you up to speed. Roblox is an online game platform and game creation system. The premise is that users can play games created by other users.
The game itself is free to play. However, there are options for in-game purchases made via the local “Robux” currency. It has over 164 million monthly users, with the vast majority of users being children under 16. Not only has this IPO shed light on eGaming, but it has also brought attention to digital entertainment companies, in general.
In its direct listing IPO, Roblox was initially indicated at $45. But on IPO day, shares began trading above $60 per share. RBLX stock ultimately reached highs of $77.78 last week during its first 3-days of trading as a public company. By the end of the week, more than 170 million shares had traded in total, with RBLX stock finishing its first week out at $69.70.
Hot Penny Stocks To Buy [or avoid] After Roblox IPO
The sheer excitement and anticipation leading up to the IPO turned the focus to “sympathy” stocks. These are ones with exposure to some facet of the RBLX model. So, whether it was gaming, broadcasting, or even digital advertising, we saw some names rally in kind with RBLX. Will that continue for the rest of March?
Keep in mind that sympathy sentiment sometimes has a shelf-life to it. So, in this case, will these be the best penny stocks to buy, or should you avoid them entirely if you think sympathy sentiment is no longer a factor?
- Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT)
- Monaker Group, Inc. (NASDAQ: MKGI)
- Limelight Networks, Inc. (NASDAQ: LLNW)
- Vislink (NASDAQ: VISL)
Blue Hat Interactive Entertainment Technology
Shares of Blue Hat Interactive surged on Friday, trading more than 31 million shares and reaching highs of $1.90 before the closing bell. Even before the market opened, premarket action saw BHAT stock reach highs of $2.25. What was the catalyst?
That’s a great question. There weren’t any headlines from the company, nor were there any filings published. But what we do know is the company provides augmented reality interactive entertainment games. This spans markets and includes things like educational materials as well as mobile games.
In its most recent update, Blue Hat announced that it entered into a 3-year agreement with education company Zhong Ya International Education Investment Co. Ltd. Blue Hat is tasked with providing augmented reality immersive classes Zhong Ya’s kindergartens in the Guangdong Province. This encompasses 680 kindergartens in total. Blue Hat will also develop a science, technology, engineering, art, and mathematics curriculum platform for Zhong Ya.
“We believe this partnership is yet another testament to the effectiveness of our interactive educational technology, and we have begun the rollout of Blue Hat’s ARIC to these 680 kindergartens since the beginning of 2021. As a result of this rollout, we expect to see a substantial increase in our revenues from interactive education in 2021.”Xiaodong Chen, CEO of Blue Hat
Assuming that progress is being made and the recent focus on digital entertainment companies, BHAT stock could have gotten folded into the sector hype.
Monaker Group, Inc.
Something that you’ll notice right now is that many companies have expanded upon their traditional platform. What I mean by this is that some companies have tailored their businesses to take advantage of emerging trends. We saw something similar to this last year with the onset of COVID-19. Many biotech companies, in that case, began shifting their treatment pipelines away from things like cancer or pain management & applied it to addressing COVID or symptoms of COVID.
We aren’t talking about biotech penny stocks in this article. But the premise I just laid out is a trend seen in certain tech stocks. Monaker Group is a good example. At the heart of its model, the company focuses on the travel sector. At the end of January, Monaker launched NextTrip Business for corporate travel and expense management as a SaaS solution.
But, seeing the rise of gaming, Monaker has a potentially bigger underlying catalyst to note. Monaker is in the process of acquiring HotPlay Enterprise Limited, an in-game advertising and AdTech company. Monaker Group has explained that its goal is to transform into NextPlay Technologies and specialize in consumer-engaging products in the video gaming and travel verticals.
Another layer to this is that this combination will also leverage things like AI and blockchain solutions. With the rise of excitement from things like bitcoin and other cryptocurrencies, many companies with exposure to anything from crypto to blockchain have benefited from sympathy sentiment.
Limelight Networks, Inc.
Let’s look at the other “picks and shovels” of esports and gaming. What I’m talking about is the broadcast and data side of things. Obviously, with any emerging sport, the distribution of the content is vital to monetization. Limelight Networks provides digital content delivery as well as cloud security and edge computing services. So everything from real-time streaming and live video to video storage and video on demand, Limelight caters to customers seeking these services. Coincidentally, last week the company released a report on the state of online gaming.
“New data shows that the spikes in gaming over the last year are driven by gamers’ desire for social connections. Half of global gamers (53 percent) say they’ve made new friends through online games in the past year and one in three (36 percent) say the ability to interact with other players is extremely important. Opportunities for interactivity and social engagement are likely drivers for video game adoption with the majority (64 percent) of global gamers saying they started playing video games in the past year.”Limelight Networks
Limelight’s solution for Gaming uses the world’s leading private CDN to ensure reliable global delivery. The company offers a suite of integrated services, including Origin Storage Services, for enhancing download performance, managing, and sharing game or video files. Obviously, its video streaming services offer live or on-demand video sharing. Furthermore, with its Cloud Security Services, customers can implement proper security protocol to prevent breaches or data attacks.
One of the more frequently discussed tech names we’ve covered is Vislink. The broader focus on the company concerned its broadcast services and potential expansion into 5G solutions. In fact, in a recent update, Mickey Miller, CEO of Vislink, explained, “5G connectivity will be a key component in achieving the Connected Edge. The live production use case requires unique specs like high uplink capacity and very low latency.”
While it will likely focus on some as it relates to 5G penny stocks, esports could be another facet to consider. If you sift through some of the company’s blog posts, you’ll notice that Vislink’s partner, NEP Sweden, covered the “BLAST Premier Spring Series” last year. This is an international esports event featuring the world’s top esports teams competing in the first-person shooter game series Counter-Strike.
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NEP filmed the event using Vislink’s HCAMs feeding into a ULRX-LD all controlled by Vislink’s FocalPoint Camera Control System. While no further esports-related updates have come about from the company, a surge in the excitement surrounding esports could be something to take note of. Furthermore, the fact that things have begun reopening could offer more opportunities for Vislink to integrate its broadcast services into other live events.