Buying Penny Stocks Today? Here’s What You Need to Know
With another week of trading penny stocks and blue chips here, there is a lot for investors to know. Now, in the past few weeks, penny stocks have been extremely volatile alongside the rest of the market. And as a result, many traders have made money with penny stocks, and many have done the opposite.
But, the best way to avoid losses will always be by having a thorough understanding of what is going on in the stock market. For that reason, let’s take a look at what you need to know about trading penny stocks today.
What to Know About Trading Penny Stocks Today
Ahead of the market open on Monday, February 7th, stock futures were pushing up. Today adds a new slew of corporate earnings to get potentially excited about. And, during premarket, we saw shares of Peloton (NASDAQ: PTON), shoot up by over 30%. Additionally, several major companies such as Hasbro and Tyson Foods, reported earnings beats and climbed during premarket trading respectively.
On Monday, February 7th, we are also seeing major cryptocurrencies such as Bitcoin, up by around 5%. This helped to push crypto-related stocks up during morning trading as well. In the past few months, crypto has continued to be in focus. And as a result, we continue to see a sizable amount of movement in the industry.
So, as we get going on another week of trading penny stocks, investors should keep all of these factors in mind. While there is a lot going on, understanding each factor individually can make it much easier to use the current state of the stock market to your advantage. With that in mind, let’s take a look at three penny stocks that gained during premarket trading.
3 Penny Stocks Climbing During Premarket Right Now
Phunware Inc. (NASDAQ: PHUN)
One of the largest premarket gaining penny stocks this morning is Phunware. By morning trading, shares of PHUN stock had shot up by over 17%, adding more than $0.40 in value. While many large gains occur without news, Phunware made an exciting announcement during premarket trading. It stated that it has entered into a strategic political partnership with Campaign Nucleus.
The goal with this is to improve its Smart Advocacy Solution for its mobile app as well as to better the potential of its range of products. Campaign Nucleus offers an AI-based platform for political data, actionable insights, and more, to those with a center-right political stance. With this exciting news in mind, will PHUN be on your list of penny stocks to watch?
Origin Agritech Ltd. (NASDAQ: SEED)
Another decent premarket gainer today is SEED stock, which climbed by over 13% during trading. This brings it to over $5.39 per share from $4.75, which technically means that SEED stock is no longer a penny stock. The major news for Origin Agritech came as it announced its 2022 guidance. In the report, it stated that it expects revenue to grow by more than 300% to over 150 million RMB.
Additionally, the company announced that it should bring in a profit in fiscal 2022. The main driver of this growth is it selling nutritionally enhanced crops to a range of feedstock companies. This is a new avenue of revenue for the company and should help it to continue expanding in the near future. With that considered, does SEED deserve a spot on your penny stocks watchlist?
Sphere 3D Corp. (NASDAQ: ANY)
While ANY stock’s gain of around 2% during premarket is nothing to write home about, the company remains in focus following news last week. In the past five days, shares of ANY stock have shot up by a staggering 56%, which is quite substantial. The big news for Sphere 3D came when it stated that it will be expanding its Bitcoin mining capacity via the purchase of 60,000 Numiner BTC mining machines.
This deal is worth $1.7 billion, and will be paid via cash, financing, ANY stock, and milestone payments. With the recent rise in the price of BTC, it makes sense that shares of ANY stock are increasing right now. So, whether this makes ANY stock worth buying or not, is up to you.
Are Penny Stocks Worth Buying
With so many penny stocks to choose from right now, it can seem difficult to pick the best ones for your watchlist. However, because there is such a wide breadth of options, making money with penny stocks in 2022 is entirely possible. Considering all of this, do you think that penny stocks are worth buying right now?
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