3 Reddit Penny Stocks to Watch Right Now
While Reddit may not be the first place you go to find penny stocks, it should be on your list when doing research. In the past year and a half, Reddit has become a go to place to find trending penny stocks. And while not all penny stocks mentioned on Reddit are worth buying, there are some that could be worth looking into. Of course, investors should still do the proper due diligence before investing in any stocks let alone those on Reddit.
But, it’s worth noting that small-caps frequently talked about online, have become extremely popular this year. One thing to keep in mind is that when a stock is discussed and therefore trending online, it is likely to see more stability and speculation than others. And, this can be worrisome for those investors looking for more stable stocks to buy. However, if volatility is your thing, it could be worth looking into.
While Reddit should never be the only place you go to find stocks, it can be a useful tool in your search. It’s important to remember to never trade with emotion. If you see a stock flying because of its presence online, it may be too late to make a profit. And, if you decide to get in due to FOMO or the fear of missing out, you will more than likely lose money. So, with all of this in mind, let’s take a look at three Reddit penny stocks to watch right now.
3 Reddit Penny Stocks to Watch
- Enzolytics Inc. (OTC: ENZC)
- Akebia Therapeutics Inc. (NASDAQ: AKBA)
- Ebang International Holdings Inc. (NASDAQ: EBON)
Enzolytics Inc. (OTC: ENZC)
Enzolytics Inc. is a biotech penny stock that has been a solid performer over the past few months. This company creates drugs that target and neutralize the HIV virus and other infectious diseases. Currently, Enzolytics Inc. is focused on commercializing its proprietary proteins. The company has clinically tested a great deal of its anti-HIV therapeutics with solid results and promising safety profiles.
On July 20th, Enzolytics announced that it has signed a letter of intent with Creative Biolabs Inc. to license and commercialize anti-HTLV-1 monoclonal antibodies. Creative will test the efficacy and neutralizing capability of the drugs, mass-produce them for marketing and distribution, and promote/market the HTLV-1 mAbs. Deals like these are always important as it is a difficult process to fully commercialize a drug. Even if it gains approval, the manufacturing and distribution stages are always a challenge.
“We now have a comprehensive platform for producing multiple targeted monoclonal antibodies against numerous infectious diseases. This platform includes our ability to identify multiple conserved and immutable sites on viruses to produce fully human monoclonal antibodies targeting those sites. This approach opens the door to new and durable therapies that can be used to treat innumerable human infectious diseases.”The CEO of ENZC, Charles Cotropia
It’s not every day we see a biotech company with a sizable market for a product and potential commercialization on the horizon. Taking note of this recent update, will you add ENZC stock to your watchlist?
Akebia Therapeutics Inc. (NASDAQ: AKBA)
Another biotech penny stock that is performing well in the market right now is Akebia Therapeutics Inc. This is a company that creates therapeutics for those with kidney diseases. Its lead product is known as Vadadustat, which is in Phase 3 trials to treat anemia caused by chronic kidney disease.
The company is developing a variety of other products as well that could have just as large of a potential market size as Vadadustat. As stated earlier, products in the Phase 3 trial stage are close to commercialization. This means that investors should stay up to date with any recent news pertaining to this trial and upcoming ones.
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On June 20th, Akebia gave 25 new employees options to purchase a total of 210,000 shares of its common stock. These options were offered at $3.79 per share, which was its closing price on the grant date. While this alone is not major news, insider buying is always important information for investors to understand.
In other recent news, Cylerion Therapeutics Inc. entered an exclusive global license agreement with Akebia to develop and commercialize praliciguat. Akebia is solely responsible for R&D as well as the commercialization for the compound. Cyclerion is eligible for $225 million in pre-commercial milestones, and future milestone payments of up to $585 million. With all of this info in mind, will AKBA enter your list of penny stocks to watch?
Ebang International Holdings Inc. (NASDAQ: EBON)
Tech penny stocks like Ebang International Holdings Inc. have been performing well in the market in the past few months. This is due to a variety of reason including the pandemic, and the general positivity around the tech industry. For some context, this company creates integrated circuit chips and Bitcoin mining machines.
The company additionally provides mining machine hosting services. Its mining machines are offered under the Ebit brand and are sold to companies in the telecommunications and blockchain industries.
In 2021, cryptocurrency has grown significantly in popularity. In fact, blockchain technology and crypto have increased in popularity greatly over the last few years. With cryptos like Bitcoin and DogeCoin exploding in value since the beginning of 2021, there are a lot of eyes on crypto now. NFTs have become a huge market as well, with individual pieces being sold for more than $60 million in some rare cases.
Because of the hype in the market for crypto, EBON stock price has increased. Often EBON stock moves with the crypto market as a whole. So when Bitcoin is down for example, it could potentially hurt EBON stock. With all of this information to keep in mind, will EBON make your list of penny stocks to watch?
Are Reddit Penny Stocks Worth It or Not?
The short answer to this is that it is up to you and your investing strategy. If you’re looking to make short term gains off of speculative stocks, trading penny stocks mentioned on Reddit could be worth it for you.
However, if you are more of a stability investor and one that is looking for long term value, it could be worth avoiding. At the end of the day, knowing your strategy and what type of investor you are will always be a major benefit. Considering this, what do you think? Are Reddit penny stocks worth it or not?