DWAC Stock Puts Focus On Penny Stocks Under $5
Finding penny stocks that could be worth buying at lower levels is a useful strategy to use. While it can be difficult to determine when a stock will rise, finding penny stocks that have faced longer periods of downward momentum can help you to make money with penny stocks if they start reversing course. For instance, if you look at the recent excitement stemming from former President Donald Trump’s Social Media app, TRUTH, you’ll see it has made a splash with some of the most heavily sold stocks.
The Digital World Acquisition Corp. (NASDAQ:DWAC) SPAC is the new home to the Trump social media app. Once the market found out the former President’s relationship to the company, bullish momentum ensued. This ultimately triggered a reaction in traders to look at other companies or industries that might benefit from DWAC’s ripple effect. Making a long-story short, some of the most heavily sold into penny stocks including Phunware Inc. (NASDAQ:PHUN), SG Blocks (NASDAQ:SGBX), and countless others promptly reversed course.
Looking ahead at the final week of October, the bullishness in small-cap stocks might have resulted from DWAC stock’s breakout last week. Keeping this in mind, we’re looking at a list of penny stocks to watch that have also come under pressure earlier in the year. Will the latest resurgence in small-cap optimism work its magic heading into the start of this week?
3 Penny Stocks To Watch This Week
- Meten Holding Group Ltd. (NASDAQ: METX)
- Qutoutiao Inc. (NASDAQ: QTT)
- Fangdd Network Group Ltd. (NASDAQ:DUO)
Meten Holding Group Ltd. (NASDAQ: METX)
Meten Holding Group Ltd. is a Chinese education stock that continues to garner attention. There has been a major focus on education stocks in the past few months following regulatory measures from the Chinese government. For some added context, Meten is a company that offers English language training services in China. These services include both adult and junior ELT services. Meten provides these servers under the Meten, ABC, and Likeshuo brand names. Currently, it has 105 learning centers and 13 franchised learning centers.
Back in September, Meten announced that it will be adopting a new initiative to develop its blockchain and cryptocurrency business. The goal is to transition Meten into a “new benchmark among innovative expenses”, The company has been looking at the feasibility of these technologies in the last year. Now the company is working on a blockchain tech strategic plan for introducing a Dogecoin reward mechanism and technology. This would effectively allow for digital copyright in education with NFTs.
“Our New Business Initiative will be built upon the traction we are already seeing in our past research and preparation of blockchain and cryptocurrency business. After an in-depth research and exploration in the crypto world, with the resources and talents of the Company, we are committed to building a professional team to explore the blockchain and cryptocurrency business while maintaining our core adult ELT business.”The CEO of Meten, Alan Peng
In the past few trading days, METX has seen volume that is much greater than its average, indicating its popularity. Keeping this in mind, will METX be on your penny stock watchlist this month?
Qutoutiao Inc. (NASDAQ: QTT)
Qutoutiao Inc. is a penny stock that has climbed by over 20% in the past five days alone. This is a sizable gain and could make QTT worth watching. If you’re unfamiliar, Qutoutiao is a communications penny stock that offers light entertainment content in China. Qutoutiao is involved in the distribution, production, and sharing of this content. The company offers Qutoutiao which is its mobile app for aggregating articles and content, where it then offers these to the public.
On September 8th, the company reported its second-quarter financial results for 2021. Qutoutiao’s net revenue fell 16.6% from 1,441 million in the second quarter of 2020. However, the company’s net loss was significantly reduced year over year. Now QTT stock is showing sizable momentum with its volume at more than triple its average.
“We will continue to run a balanced strategy with our overall business, investing into promising growth initiatives while optimizing the financial position of the more mature segments.”The CEO and Chairman Mr. Eric Siliang Tan
Right now, the entertainment industry is on fire. And companies like Qutoutiao continue to benefit. Whether this makes QTT stock worth adding to your list of penny stocks to watch is up to you.
Fangdd Network Group Ltd. (NASDAQ: DUO)
Fangdd Network Group Ltd. is a penny stock that has climbed by almost 40% in the past five days despite a YTD loss of over 80%. Fangdd Network is a company that operates as an online real estate marketplace. It operates Duoduo Sales which is used by real estate agents in China for listings and so on. This service specifically is in use to access property listings, marketplace products, real estate buyer bases, and much more. Its marketplace products and services include data analytic tools, AI-based marketplace assistance, shared listings, and others.
On August 13th, the company reported its second-quarter financial results for 2021. The company announced that its revenue in this period went up by 37.9% to a total of RMB401.4 million from RMB291.0 million in the first quarter of 2021. If taking the provision of allowance for doubtful accounts effect consideration, Fangdd’s net loss fell year over year. This is the same case for Fangdd’s non-GAAP net loss.
“China’s new construction property market saw continued growth in the first half of 2021, reaching RMB9.3 trillion in sales. However, the government continued to intensify regulations aimed at limiting market speculation during the second quarter, leading to cash flow difficulties for certain real estate companies”.Chairman and Co-CEO of Fangdd, Mr. Yi Duan
On October 21st, DUO stock’s volume was at about 33 million compared to an average of around 930,000. Considering its yearly loss and recent bullish momentum, DUO stock does look like it is quite volatile. However, with the attention on it right now, it could be worth looking into. With that in mind, does DUO deserve a spot on your watchlist right now?
Which Penny Stocks Are You Watching in 2021?
Finding the best penny stocks for your watch list can be complicated. But, with proper research and understanding which industries could have value, it can be much easier than initially thought. One of the other things to keep in mind is knowing what else is going on in the stock market that could trigger certain trends. Heading into the final week of October 2021, a new Trump social media app SPAC – DWAC stock – has placed a bright spotlight on small caps. With this is in mind, last week’s wild volatlity could be something to keep in mind at the start of Monday’s opening session.