Are These Penny Stocks On Your Tech Watch List Right Now?
Penny stocks are well-known for their volatility and big moves in the market. What adds to the action are hot sectors that tend to amplify the trend. In this case, the tech space has been one of the hottest to watch over the last 18 months.
Look back at March of 2020, when all stocks were in the dumps, and compare that to right now. The tech-heavy Nasdaq ETF (NASDAQ:QQQ) has jumped 132%. Meanwhile, the S&P 500 ETF (NYSE:SPY) is up 107%, and the Dow (NYSE:DIA) is “only up” 94%. Based on all measures, the past 18 months have been incredible for stocks, but clearly, tech is helping to dictate the narrative.
Knowing this, it may not be a bad idea to focus on popular trends in tech right now. They come in all shapes and sizes, ranging from digital advertising and entertainment to Fintech, green energy, and everything in between. The main thing to think about is that your daily life involves plenty of technology, which is one of the reasons why we’ve seen such a surge in the market.
Analysts Are Bullish On Tech Stocks
It isn’t just retail traders looking to take advantage of a ‘fad,’ analysts are also increasingly bullish on the sector even at all-time highs.
“We believe Fedspeak and messaging coming out of Jackson Hole is very bullish for tech stocks with an ‘all clear for risk-on assets’ in the near-term led by tech stocks…predicated on our multiyear thesis that the digital transformation story across the consumer and enterprise ecosystem is still in the early innings of playing out…We believe massive growth is still on the horizon with tech stocks and FAANG names underestimating this surge of demand for the next 2–3 years.”Dan Ives, Wedbush
With this as a backdrop to bullishness in tech, we’re going to take a closer look at 5 companies right now.
Penny Stocks To Watch For September
- Alpha Esports Tech (OTC:APETF)(CSE:ALPA)
- Onion Global (NYSE:OG)
- LightInTheBox Holding (NYSE:LITB)
- Humbl Inc. (OTC:HMBL)
- Borqs Technologies Inc. (NASDAQ:BRQS)
1. Alpha Esports Tech (OTC:APETF)(CSE:ALPA)
If there’s one arena (no pun intended) gaining exponential momentum right now, it’s esports. The virtual gaming phenomenon grew legs in 2020, leading to an all-out explosion in interest in 2021. As competitive video games fold into popular culture, the media, brands, consumers, and investors are all paying attention. In fact, according to data from Statista*, this year, the global eSports market was valued at just over $1.08 billion. This is an almost 50% increase from the previous year. The eSports industry’s global market revenue was also forecast to grow to as much as $1.62 billion in 2024.
Everything from online betting (iGaming) to digital currency & tokenization have found their way into the Esports ecosystem. One company looking to take advantage right now is Alpha Esports Tech. The company has built its platform around gaming and fostering the development of novice and pro athletes alike. Its GamerzArena, GamerzArena+, GamerzArcade, and GamerzYouth have all been designed to extend the company’s reach across all skill levels and age groups. Alpha has also begun expanding its reach through partnerships with other companies as well.
In fact, this week, the company announced its latest deal with Apna Hockey, the world’s first South Asian hockey network. GamerzArena will become the exclusive platform for all of Apna Hockey’s online esports events. Alpha will host and operate a variety of gaming tournaments under the Apna Hockey Brand.
Apna Hockey will leverage its existing relationships in esports to promote the Company’s subscription service, GamerzArena+. The Company will promote Apna Hockey and offer prizes for Apna Hockey players. The Company and Apna Hockey will co-market joint events and tournaments across both organization’s users and player bases. Both parties to host and operate multiple esports contests in NHL 22 under the Apna Hockey brand.
Cryptocurrency & Esports?
Thanks to the digital assets and cryptocurrency trend, esports companies are finding new ways to expand monetization opportunities. In this light, Alpha has also moved quickly to establish footing. Its Bitcoin pegged Alpha Coin has been created to allow users to enter contests and tournaments while also giving winners the ability to redeem their Alpha Token winnings for local currency or purchases in the GamerzArena store.
With over 100,000 users, 4,000+ days of stream time, 5 million+ spectators & representations of 96 countries, according to Alpha, the company has gained ground. With the esports trend beginning to advance, will companies like Alpha Esports be on your watch list this year?
2. Onion Global (NYSE:OG)
Another one of the trends we’ve seen in the stock market today is one involving Chinese tech companies. Onion Global is a brand incubator in China offering a platform to develop, market, and distribute new products online. Some things that have helped boost sentiment in the market recently center around Onion’s business growth.
For instance, in its latest quarterly update, the company explained that it continues to progress in establishing private label brands while expanding its premium product offerings to consumers. Private label and strategic brands grew to 27 and 111 respectively by the end of June. Furthermore, the company said that there is a “growing contribution” from both of these brand types to its total gross merchandise value.
During the second quarter of 2021, the GMV of our private label brands and strategic brands, collectively, accounted for 43.8% of the Group’s total GMV compared with 30.5% in the same period of 2020.” commented Mr. Cong (Kenny) Li, Founder, and CEO of Onion Global Limited in an August press release.
Adding to this point, last week, the company announced the launch of “ZIPLAB.” This is Onion’s retail showroom, where multiple brands are showcased in various fashion categories. The directive behind this offline model is to hedge against the growing online competition. The company explained that an offline presence is important to complement its virtual user acquisition strategy. With this multi-pronged approach to commerce, OG stock has come into focus this week.
3. LightInTheBox Holding (NYSE:LITB)
Another Chinese e-commerce penny stock to watch right now is LightInTheBox Holding. The company delivers products directly to consumers globally and has realized considerable year-over-year growth as of its most recent quarter. Total revenues for the company increased by 7/3% to $122.2 million, and revenues generated from product sales totaled $119.3 million. Some of the biggest growth in the segment came from apparel sales, which increased by 149% to $74 million during the second quarter.
Commenting on the success, CEO Jian He, Chief Executive Officer of LightInTheBox, said, “During the quarter, we continued to deliver healthy financial results. Total revenues increased to $122.2 million in the second quarter of 2021, compared with $113.9 million in the same quarter of 2020…In the long term, we believe that we are well-positioned to adapt to changes in highly competitive markets by staying on course with our values and going beyond our customers’ expectations as a comprehensive and reliable shopping destination.”
With a spark in trading momentum coming in on tech stocks and e-commerce, LITB stock has become a bigger point of interest for traders. After weeks of selling pressure, the latest uptick in the trend for LITB stock is likely a warm welcome to those looking at it this quarter. The bigger question is will this trend continue throughout the rest of the month?
4. Humbl Inc. (OTC:HMBL)
The global fintech market has gotten thrown for a loop in a good way. Thanks to the rise of digital assets like NFTs (non-fungible tokens) and cryptocurrencies like bitcoin and ethereum, Fintech stocks are red hot. Humbl Inc has gotten wrapped up in the mix as well. The last 3 sessions have seen HMBL stock surge and break back above the $1 mark for the first time since July.
Humbl has developed platforms that include mobile payments, ticketing, digital assets, and even NFTs, all on a blockchain. With the “reopening trade” becoming more relevant, events are starting up again. Humbl’s recent update on corporate ticket solutions has built some interest in the stock. In particular, Humbl’s agreement with Ticket Evolution provides fans with lower-cost premium seating. Whether it’s pro sports, college, concerts, theatres, or festivals, the HUMBL Tickets platform aims to deliver.
Meanwhile, the company has been stacking its leadership team with new members. Last month, Humbl brought on a new Senior Technology Advisor, Robert Cornish. He served as the Chief Technology Officer of Gemini, a popular crypto platform. He was responsible for all aspects of tech advancement for the platform. These include support for its NFT exchange and launch of Gemini Dollar stablecoin. Considering the direction that Humbl has headed in and the excitement surrounding digital assets, it could be one to watch right now.
5. Borqs Technologies Inc. (NASDAQ:BRQS)
Another one of the fintech companies that has jumped recently is Borqs Technologies. The company specializes in different facets of tech. This includes communications as well as a recent endeavor in blockchain technology.
Last month, the company announced a strategic investment and collaboration with Zippie, a blockchain application, and payment platform company. The companies will develop solutions for the Internet of Things, through the deal, including autonomous payments to service digital transaction demand.
The scope of the deal may be interesting to be mindful of. According to the company, by the end of 2021, the Zippie payment system is expected to be connected to 1.3 billion mobile wallets and 3 billion bank accounts globally. With the rising interest in digital payments, cryptocurrency, and blockchain technology, BRQS stock has gained some momentum early this month.
Are Tech Stocks The Best To Buy?
Nobody knows the future. So who am I to say tech is a sure bet for gains in the stock market this year. However, in looking at recent trends, the current outlook appears bright for the tech industry as a whole. Analysts remain bullish and retail traders continue to find new trade ideas in companies within the space. Will tech be on your list of stocks to buy this month?
* https://www.statista .com/statistics/490522/global-esports-market-revenue/
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