If there’s one trend that has stood out, it’s the one involving retail traders. Call them “Reddit stocks,” “meme stocks,” “stonks,” or something else; the focal point is on “mom and pop” investors. Despite being one piece of the “stock market pie,” the Ape movement has changed the stock market landscape as we know it. There has been much more volatility and a lot more speculative trading regarding things like penny stocks.
Whether you love it or hate it, the fact is that retail traders are always looking for an edge, and that edge is staying ahead of the daily trends. One of the ways people are trying to do this is by using social sentiment to their advantage.
Finding where the right conversations are beginning and what the discussions are about has become somewhat of an asset to high-volatility traders. Today we look at a handful of penny stocks gaining momentum and popularity among this retail crowd. The first step is deciding whether or not the “popular Reddit stocks” are ones to buy or avoid entirely.
- Moving iMage Technologies Inc. (NYSE: MITQ)
- Bit Digital Inc. (NASDAQ: BTBT)
- Accuray Incorporated (NASDAQ: ARAY)
Reddit Penny Stocks To Buy [or avoid]1. Moving iMage Technologies Inc. (NYSE: MITQ)
This year started as “the year for all things digital.” Whether it’s NFTs, cryptocurrency, or digital entertainment, this theme took hold early on in 2022. Moving iMage Technologies manufactures solutions to support entertainment applications focusing on movie exhibitions. Its offering is vast and includes everything from A/V integration to custom solutions for emerging entertainment technology.
Moving iMage is coming off of a solid second-quarter report that included strong revenue guidance. The company reported 113% revenue growth to $3.4 million, with a backlog increase of 44% sequentially to over $11 million at the end of the quarter. As far as the blockbuster guidance is concerned, the company increased its range to $14 million – $16 million, which would equate to year-over-year growth of 93% – 121%.
Phil Rafnson, chairman and the chief executive officer, explained in a February release, “We continued to benefit from a combination of our strong proprietary product portfolio and leading industry position, as cinema operators are just beginning to invest the Cares Act grants (SVOG) into technology and overall theater upgrades to remain competitive. Additionally, the domestic box office continued its strong recovery, with multiple blockbusters in late 2021 and analysts expecting a strong recovery in 2022.”
With continued momentum from this earnings update, MITQ stock remains a hot name in social circles. Shares have jumped over 50% since the start of the week.
2. Bit Digital Inc. (NASDAQ: BTBT)
The cryptocurrency industry as a whole has been volatile to start the year. Leading cryptocurrencies like Bitcoin and Ethereum have seen prices flip-flop in broad ranges. As such, related cryptocurrency stocks have responded. However, the latest trend is a bit more bullish than in recent weeks.
Bit Digital is one of the many Bitcoin stocks on the watch list of retail traders. The company specializes in cryptocurrency mining with an environmentally friendly “twist” that has sparked interest this month. Bit Digital’s most recent initiative has it involved at a government level. Specifically, Bit Digital reiterated its environmental track record. There were also plans on submitting a formal testimony to the New York State Senate Standing Committees on Environmental Conservation, Energy and Telecommunications, and Internet and Technology.
In an update, last month, Bryan Bullett, Chief Executive Officer, Bit Digital also explained, “Our company has made it a point to take a leadership position regarding sustainable practices in the crypto mining industry.”
BTBT stock is also a favorite among some ETF managers. As of today, some of the ones holding a position include The Global X FinTech ETF (NASDAQ: FINX) and Blockchain ETF (NASDAQ: BKCH), and even the Goldman Sachs Innovate Equity ETF (NASDAQ: GINN).
3. Accuray Incorporated (NASDAQ:ARAY)
Since the beginning of January, shares of ARAY stock have dropped until recently. Thanks to recent updates, the penny stock has reversed course at the beginning of February.
The radiation therapy company reported earnings at the end of last month. While earnings per share were lower, year-over-year, Accuray beat sales estimates recording $116.3 million compared to the $103.32 million expected. This was also a record for the company, helped by a 13% increase in gross orders compared to the prior year. Its ClearRT Helical kVCT Imaging for the Radixact System was a big driver. Its Robotic Radiotherapy Platform, CuberKnife, was also able to expand its range of indications.
Based on its fiscal Q2 2022, the company revised its guidance and increased revenue expectations to a range of $420 million – $430 million. This was previously in a range of $420 million – $427 million. Joshua Levine, Chief Executive Officer, also explained, ” Accuray’s fiscal 2022 second-quarter performance continues to reflect the strong customer demand and revenue momentum our business is generating…Driving our accelerated revenue growth is the continued adoption of our new technology upgrades on the Radixact platform, which are having an impact across all regions.”
Next week the company participates in the BTIG MedTech, Digital health, Life Science & Diagnostic Tools Conference on February 16.
Reddit Penny Stocks To Watch Right Now
Social sentiment is becoming an essential factor in the stock market today. Whether it’s Reddit, Twitter, Facebook, or even TikTok, thousands of investors are finding a voice. This is a new platform for exchanging investment ideas and trading strategies. It has also opened up an entirely different world for some that felt limited in the past.
One of the most important things to remember is that with social sentiment can come a lot more speculative discussions. With that comes the potential for more risk. Whether you’re chatting with someone online or reading a new thread, it’s always a good idea to take things a step further. Do additional research and determine what is or isn’t suitable for you.