3 Hot Penny Stocks For Your Watchlist as HOOD Stock Goes Public
While the HOOD IPO may not seem like a big deal for penny stocks at first, it without a doubt is. Robinhood is one of the most popular places for investors to buy penny stocks.
And, while it is already used by millions of traders, the HOOD IPO could bring even more attention to the brokerage platform. On Thursday, July 29th, Robinhood is set to go public under the ticker symbol, HOOD. Pre IPO, shares of HOOD sold for $38, putting Robinhood at a total valuation of $32 billion.
Why The HOOD IPO Matters
In the first quarter of this year, revenue for Robinhood shot up by over 300% to $522 million over Q1 2020. This staggering growth is something we see only occasionally in the stock market and is one of the reasons that this IPO is such a big deal.
Additionally, over the past year and a half, many investors have taken to Robinhood to buy both penny stocks and blue chips. This platform has essentially democratized trading, and therefore, resulted in a complete paradigm shift in the stock market.
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To put it into context, the major brokerage firm Charles Schwab, has a market cap of over $130 billion, and this company has been around for decades. So, to see Robinhood with a market cap even close to that is quite impressive. Considering all of this information, let’s take a look at three hot penny stocks to watch ahead of the Robinhood IPO.
Best Penny Stocks to Watch As Robinhood Goes Public
- Ideanomics Inc. (NASDAQ: IDEX)
- Aehr Test Systems (NASDAQ: AEHR)
- SOS Limited (NYSE: SOS)
Ideanomics Inc. (NASDAQ: IDEX)
Ideanomics Inc. is a penny stock that we have discussed frequently over the past few months. This company’s main focus is the adoption of electric vehicles for commercial use and fintech services. To put it simply, Ideanomics operates in two niches. On one hand, its Ideanomics Mobility division provides solutions for charging, energy management, and other related services needed to have a full-electric fleet of commercial vehicles.
And on the other hand, its Ideanomics Capital division invests in burgeoning fintech solutions. It is with the latter that we see the connection to the Robinhood IPO, however, IDEX on its own still presents quite a bit of value. And, its work as an EV penny stock is something that sets it apart from many other similar companies. Back in June, Ideanomics acquired Solectrac Inc., an EV tractor maker. The company already owned a percentage of the company, but now it will have 100% ownership.
“EV tractors have proven to be superior to their diesel counterparts not only when it comes to torque and overall performance, but also when you consider operating costs, reliability, and the positive impact they have on the environment. They are also an underserved part of the market when it comes to EV initiatives. For those reasons, we are excited to bring Steve Heckeroth and the Solectrac team into the Ideanomics family.”
The CEO of Ideanomics, Alf Poor
This is a big deal as the majority of the agriculture industry depends on fossil-fuel-powered vehicles. Not only could this reduce costs in the long run, but the environmental impact could be substantially less.
Now Ideanomics has announced that it will release its second-quarter financial results on Monday, August 16th. This is an important day for investors and potential investors to look out for. Financial results can often cause penny stocks to move up or down in the market. And, they also give insight into what a company is doing at the present point in time. Keeping everything mentioned in mind, will IDEX be on your list of penny stocks to watch?
Aehr Test Systems (NASDAQ: AEHR)
Aehr Test Systems is a tech penny stock that has continued to be a trending company over the past few months. Aehr’s products are used in the semiconductor industry for the most part. If you’ve followed the trajectory of this industry, you’ve likely seen the massive demand spike in the last year. Aehr designs, manufactures, and sells test and burn-in equipment for this sector. Some of its products include fox SYSTEMS, WaferPak, DiePak Loader, among others.
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The momentum that AEHR stock is experiencing right now is likely the result of a recent update. The company received a $10.8 million order to produce test and burn-in of silicon carbide power semiconductors for electric vehicles on July 19th. The EV market is huge and growing every day, so this is a big deal for Aehr Test Systems and investors alike. The company will produce multiple FOX-XP systems, and full sets of WaferPak Contactors to meet the increased production capacity requirements.
“These follow-on orders for additional FOX-XP systems and WaferPaks are the result of our working closely with this lead customer to achieve their test requirements and validation of our FOX-P platform and WaferPak full wafer contactors as their production qualified solution.
This customer continues to forecast orders for multiple additional FOX systems and WaferPak Contactors this fiscal year and a significant number of systems and WaferPaks over the next several years due to electric vehicle semiconductor test and burn-in demand.”
said, “These follow-on o
This recent announcement has resulted in AEHR stock increasing in market value. In the past month, shares of AEHR have shot up by over 115%. This is both a reflection of the bullish sentiment around the EV market and with AEHR on its own. With this in mind, will AEHR enter your list of EV penny stocks to watch?
SOS Limited (NYSE: SOS)
SOS Limited is a penny stock that has become highly popularized in the past year or so. For some context, SOS is a tech company that provides data mining and analysis services in China. The company serves the finance market, insurance businesses, medical institutions, and much more.
SOS Limited also offers blockchain-based insurance, cryptocurrency mining, and other blockchain operations. While SOS was involved in the emergency services market only a few years ago, it seems as though it goes where the money is. And, right now that is in the blockchain industry. For this reason, SOS has transitioned into a mostly pure-play blockchain penny stock. In addition, it has a sizable focus on crypto and the underlying technology.
On June 21st, the company entered a joint venture agreement with Niagara Development LLC. This joint venture is to accelerate SOS Limited’s blockchain operations in the United States. Niagara Development will provide up to 150MW of electricity as a part of the agreement. This was a big deal for SOS Limited and resulted in its stock price going up.
The Chairman of the company, Yandai Wang said, “SOS continues to increase its development of comprehensive blockchain solutions for digital trade, digital finance, and other industries. We decided to acquire a sustainable power supply as far as possible, as we expand our blockchain operations into North America and look forward to successful operation of the joint venture.”
Noting this recent advancement, will you add this company to your list of blockchain penny stocks to watch?
Are Penny Stocks Worth Watching Ahead of the HOOD IPO?
The Robinhood IPO is exciting for both blue chip and penny stocks investors alike. As always, when an IPO is on the table, there can be correlative momentum for traders to get excited about.
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Although it may be difficult to spot the winners at first, there are plenty of opportunities to benefit from HOOD stock. Considering this, what do you think? Are penny stocks worth watching ahead of the HOOD IPO?
