That’s right; Facebook is down. But not only Facebook but the whole suite of Zuck’s apps. Instagram is down, WhatsApp is down, and even Messenger is down. Why is Facebook down? Well, if you go to its Twitter feed, the company explained that it is “aware that some people are having trouble accessing the Facebook (NASDAQ:FB) app. We’re working to get things back to normal as quickly as possible, and we apologize for any inconvenience.”
But that doesn’t mean all social apps are down. If you’re looking for some of the best penny stocks to buy on social media, Reddit has become a more prominent place to look. This is, of course, where the whole meme stonks craze began earlier in the year.
Tracing its origins back to popular sub Reddits like r/WallStreetBets r/RedditPennyStocks, and r/PennyStocks, AMC Entertainment (NYSE:AMC), Vinco Ventures (NASDAQ:BBIG), and plenty of others got their retail trading spark from Redditors. So while you might be wondering, Why is Facebook down,” if you’re a trader looking to gauge some social sentiment, there are plenty of other places to search right now.
Best Penny Stocks To Buy [or avoid] On Reddit
Today we’re looking at some of the trending penny stocks today. Whether it’s Reddit, Twitter, or popular chatrooms, retail traders have begun actively mentioning these names in different circles. Some you may recognize as potential short squeeze stocks. Others may have gotten mixed with low float stocks. Meanwhile, there could be some companies on this list of penny stocks that are brand new to you. In any case, I’ll leave it up to you to decide if they’re worth adding to your watchlist or avoiding entirely.
- Cinedigm Corporation (NASDAQ:CIDM)
- Camber Energy (NYSE:CEI)
- Evolve Transition Infrastructure (NYSE:SNMP)
- ContextLogic Inc. (NASDAQ:WISH)
Reddit Penny Stocks To Buy [or avoid] #1. Cinedigm Corporation
One of the active penny stocks today is Cinedigm Corporation. This is one of the names we’ve followed for a while now. While I won’t give you a full deep dive on the company, there are a few things to make note of right now. That’s especially true when discussing any streaming entertainment stock, in my opinion. Thanks to the stay-at-home orders of the 2020 pandemic, many became more used to cutting the cord. With that has come a slew of new streaming platforms that are all hungry for adding new content to their catalogs.
Cinedigm is a content provider offering streaming channels and technology services to leading media and retail companies. This week, in fact, the company announced the newest milestone from its Fandor streaming service. According to press, Fandor was named the “Netflix for Indie Film” by the Wall Street Journal. Debuting a new look to the platform, Cinedigm explained that this new look with a wider footprint and more content acquisitions on the horizon will offer subscribers more access to thousands of hours of entertainment.
Erick Opeka, President & Chief Strategy Officer of Cinedigm explained, “Fandor has been a pioneer in this space and offers a haven for Cinephiles looking for deep and meaningful titles that made them fall in love with films in the first place. Cinedigm’s commitment to independent film has never been stronger and, as the company grows into a global brand, that dedication has caught the attention of filmmakers around the world.”
Though it isn’t one of the short-term skyrocketing names on this list, CIDM stock has steadily risen over the last few months. Since January 4th, the penny stock has climbed from under $0.70 to over $2.80 within the last few weeks.
2. Camber Energy (NYSE:CEI)
Energy penny stocks are hot this week. With a mix of excitement focused on traditional oil and gas paired with momentum from renewable energy, many of these companies are heating up scanners. Camber Energy has become somewhat of a bellwether for carbon capture penny stocks. That’s thanks, in part, to a move that it made from August to September of over 1,200%.
Thanks to its new meme stock status, groups of traders on social media have followed this company closely more recently. Similar to Progenity, Camber has been wrapped into the short squeeze penny stocks niche. As of right now, most outlets show a short float percentage of around 24%. By most accounts, anything over 20% is considered high.
While Camber is traditionally focused on oil and gas, its latest initiatives focus more on carbon neutrality. In particular, Camber recently signed a deal with ESG Clean Energy to exclusively license intellectual property regarding ESG’s patent rights and knowledge related to stationary electric power generation. According to the company, this includes ways to use heat and capture carbon dioxide.
Essentially, the IP involves repurposing otherwise harmful carbon from combustion engines and using this “waste heat” to produce valuable commodities. This would include distilled/ de-ionized water, UREA (NH4); ammonia (NH3); ethanol; and methanol, which could get resold. I won’t go into an entire history lesson on CEI stock. But with the latest focus of retail traders on both short-squeeze and energy stocks, this could be one of the names on a list of penny stocks to watch right now.
3. Evolve Transition Infrastructure (NYSE:SNMP)
Similar to Camber, Evolve is finding its footing in the renewables space right now. The company specializes in the transitional infrastructure necessary to the shift to lower-carbon energy sources. It has also been going through the final steps of firming up a joint venture with Nuvve Holdings Corp. (NASDAQ: NVVE) and Stonepeak Partners. This JV named Levo Mobility uses Nuvve’s V2G (vehicle-to-grid) technology, money from Stonepeak, and Evolve to speed up the development of electric fleets.
Stonepeak and Evolve plan to deploy up to an aggregate $750 million capital commitment to Levo. Adding to this is what Evolve achieved before the end of August. The company executed its credit agreement with the Royal Bank of Canada, providing Evolve with a $65 million term loan and a $5 million revolving credit facility.
“The execution of this amended credit agreement represents the completion of an important milestone in our business strategy shift to focusing on the acquisition and development of infrastructure critical to the transition of energy supply to lower carbon sources”Chuck Ward, Evolve CFO
With a strong focus on renewables, SNMP stock has been one to watch recently.
4. ContextLogic Inc. (NASDAQ:WISH)
One of the companies I honestly thought we wouldn’t have a chance to discuss is ContextLogic. Better known for its online outlet, Wish, the company specializes in affordable products sold through its online portal.
Since its IPO, WISH stock has faced a staggering amount of speculative trading. This goes for both bullish and bearish discussions. However, as you’ll see, the bears were the victors so far. Now, as a penny stock, WISH is off its 52-week highs by over 80%. Adding to things, WISH stock was also downgraded by analysts like Oppenheimer, who set a price target of $4 and cut its Perform rating to Underperform.
The company itself continues making strides toward growth. Monday, the company announced that it strengthened its position in Spain through a new partnership with Correos. The Spanish carrier will help Spanish merchants process their orders quickly and efficiently within a fully trackable system that is designed to optimize the customer experience, according to a press release from ContextLogic.
This adds to the company’s growing list of channel partners. Wish has quickly become one of the largest eCommerce platforms servicing millions of consumers in over 100 countries. Despite the recent downtrend in the stock, will this latest move help turn things around?
Are Penny Stocks Worth It?
Risk and reward are the most significant factors when it comes to buying penny stocks. How much money are you putting on the table to hopefully achieve your target gains? With social sentiment as a critical driver for some of the stocks mentioned on this list, volatility also has a heavy hand.
With the slightest shift in opinion can come a much more significant change in directional movement. The goal with that is to be on the right side of the sentiment, no matter if it’s bullish or bearish. Given the current trends in the stock market today, are any of these names on your list of penny stocks?