Buying Penny Stocks Today? Here’s What You Need to Know
With the month of February here for trading penny stocks and blue chips, there is a lot for investors to consider. Now, January was a tough month in the stock market without a doubt. Data shows that January was the worst performing month since March of 2020, when the pandemic began in full force.
So, now that February is here, we could see a symbolic shift, with the potential for bullish trading sentiment. To understand if this could be the case, let’s take a look at what you need to know about trading penny stocks today.
What to Know About Trading Penny Stocks Today
During premarket trading on Tuesday morning, Futures for the S&P 500, NASDAQ, and Dow Jones dropped as investors digested the poor performance of January. With the NASDAQ Composite dropping by almost 9%, we almost witnessed it being the worst month on record for the index.
The main news right now concerns the rise in interest rates that was announced a few weeks ago. This resulted in sizable drops for several consecutive days. Fed. Reserve Chair, Jerome Powell stated that the interest rates could begin to rise in March as the Fed works to lower inflation and increase financial security.
Right now, investors and analysts alike all believe that the volatility we’re witnessing, will continue into the near future. However, if we look at past stock market performance, we see that after major drops, the market has typically bounced back. Considering all of this, here are three penny stocks that are climbing during premarket right now.
3 Penny Stocks Climbing During Premarket Right Now
Bakkt Holdings Inc. (NYSE: BKKT)
One of the bigger premarket gainers today is BKKT stock. By early morning, shares of BKKT were up by around 7.4%. This does not include its five day gain of over 9%, which is helping to show a bullish turnaround with BKKT stock.
The news with BKKT came as Hanover Community Bank announced that it would join its early adopter program to connect with Bakkt’s new cryptocurrency platform. This will allow current bank customers to access their Bitcoin and Ethereum via Hanover’s app. The announcement is big news and shows BKKT’s advancements in crypto as a whole and its own business. With that in mind, will it be on your penny stocks watchlist?
Spire Global Inc. (NYSE: SPIR)
With over 3.2% in gains during morning trading, SPIR stock is another penny stock that is in focus right now. The news with SPIR comes as the company announced its preliminary fourth quarter and full year 2021 financial results as well as guidance for fiscal 2022. In the results, its full year revenue came in at the top of the guidance range, alongside a 2022 outlook with an ARR of around $70.8 million.
In Spire’s Q4 2021 revenue, the company posted an increase of 111% over the previous years same quarter. And, its full year 2021 revenue is expected to come in around 53% higher than the previous year. With all of this positive news considered, is SPIR stock worth watching right now?
Obseva SA (NASDAQ: OBSV)
One of the larger gainers of the day is OBSV stock, which pushed up by over 8.5% by early morning trading. While many large gains occur without news, the company made an exciting announcement during premarket. It stated that it has appointed Katja Buhrer as its new Chief Strategy Officer as well as a member of its Executive Committee.
This is effective today, and has been received well by investors. Buhrer has been involved in several other biotech companies as VP, Chief of Staff, and more. And because of her extensive experience, Buhrer should be a major asset to the company. Whether this makes OBSV worth adding to your list of penny stocks to watch is up to you.
Are Penny Stocks Worth Buying Right Now?
With so many penny stocks to choose from, it can seem difficult to pick the best ones to buy. However, with a thorough understanding of the news, investors can have a much easier time doing so.
Because penny stocks are so speculative, understanding exactly what is going on in the stock market, is crucial to making money with small caps. With that in mind, do you think that penny stocks are worth buying right now or not?
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