Buying Penny Stocks Today? Here’s What You Need to Know
Yesterday, we witnessed many penny stocks and blue chips fall substantially. This was led by Meta, the parent company of Facebook, dropping in value by more than 26%. As a result, the tech heavy NASDAQ, dropped by over 3.7% with the S&P 500 dropping by around 2.4%. This is the largest drop since February of 2021.
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Now, Facebook cited Apple’s updated privacy policies as the reason behind its dismal balance sheet update. And, this resulted in the company shaving off more than $230 billion of its market cap. So, with investors still looking for penny stocks to buy, what do you need to know about trading today?
What to Know About Trading Penny Stocks Today
Today, we witnessed stock futures fall again despite a surge in jobs in January as well as an increase in bond yields. The sentiment behind this is that the Fed will move forward with its goal of increasing interest rates by next month. In morning trading, Futures for the Dow Jones, dropped by around 250 points while the S&P 500 lost around 0.5%.
While major indexes saw futures drop, many tech stocks exploded during premarket. This includes Snap Inc. (NYSE: SNAP), Amazon (NASDAQ: AMZN), and Pinterest (NYSE: PINS), shooting up by 46%, 12%, and 13% respectively. So, while there is a lot of uncertainty for both penny stocks and blue chips moving forward, there is also a lot to be excited about. With that in mind, let’s take a look at three penny stocks that climbed during premarket trading.
3 Penny Stocks Climbing During Premarket Right Now
- Sphere 3D Corp. (NASDAQ: ANY)
- Orchard Therapeutics plc. (NASDAQ: ORTX)
- Standard Lithium Ltd. (NYSE: SLI)
Sphere 3D Corp. (NASDAQ: ANY)
One of the bigger gainers of the day so far is ANY stock. During morning trading, shares of ANY increased by around 11.6% to over $2.58 per share. While many large gains occur without news, Sphere made an exciting announcement during premarket. It stated that it will grow its Bitcoin mining capacity to 32 exahash by purchasing an additional 60,000 Bitcoin mining machines.
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These machines will be paid for with $400 million worth of Sphere 3D capital stock and $29 million in cash. Additionally, it will pay with an option to utilize around $1.1 billion in vendor purchasing financing as well as $185 million in milestone payments. This comes out to a total of $1.7 billion. This is exciting news and could make ANY stock worth adding to your list of penny stocks to watch.
Orchard Therapeutics plc. (NASDAQ: ORTX)
Another premarket gainer today is ORTX stock. By early morning, shares of ORTX had climbed by over 6.6%. The reason for this gain comes as the company reached an agreement with the National Health Service that would allow children with metachromatic leukodystrophy, the access to its Libmeldy product in England and Whales.
“Today’s landmark agreement with NHS England follows a thoughtful and comprehensive value assessment by NICE and represents a major milestone for the MLD community, Orchard, and the entire field of HSC gene therapy.”
The CEO of Orchard Therapeutics, Bobby Gaspar, M.D., Ph.D.
This is big news for the company and should continue to play out in the future. With that in mind, will it be on your penny stocks watchlist moving forward?
Standard Lithium Ltd. (NYSE: SLI)
While at $5.69 per share, SLI stock is not a penny stock, it has been nearing penny stock status many times over the past few months. And, with a 9.5% gain during premarket trading, SLI stock is on many investors radars right now. So, why are shares of SLI stock climbing right now? The main news comes as SLI stock dropped by around 17% only a day ago following a report from Hindenburg Research.
The report discussed the CEO of SLI, improper capital allocations, false claims made by the company and so on. So, needless to say, the press was not a positive for the company and resulted in a major drop in value. While this in no way means that SLI stock is worth buying, its gain today is volatile enough to garner attention. Considering that, does it deserve a spot on your watchlist today?
Which Penny Stocks Are You Watching?
With such a wide variety of penny stocks to choose from, investors need to be picky with the ones on their lists. Because there are so many options, investors also need to understand exactly what is going on in the stock market and how to take advantage.
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If we consider that 2022 is unlike any other year, we see that there is a lot of opportunity to make money with penny stocks. With all of that in mind, which penny stocks are you watching right now?
