Hot Penny Stocks For Your Watchlist as the Stock Market Falls Again
While investing in penny stocks is never easy, doing so during a market crash is even more difficult. The key to success when it comes to buying penny stocks is to find the right stocks at the right time. To do this, you need to have a firm understanding of what penny stocks are, and what is going on in the stock market.
Investing in Penny Stocks During a Market Crash
Right now, much of the volatility we are seeing stems from increasing interest rates, rising inflation, and slowing economic growth. This has caused the stock market to decline substantially over the past few months.
And although this news is disheartening for some, there are plenty of ways to make money with penny stocks. By understanding what factors are impacting the stock market and how these factors can impact certain stocks, you will be in a much better position to make money.
In the current market environment, there are three key things that you need to consider before investing in penny stocks: interest rates, inflation, and economic growth. As stated before, these three factors should always be considered when looking for penny stocks to buy.
And while investing during a market crash can be complicated, using small or large movements can be a great way to stay ahead. During a crash, fundamentals tend to go out the window, and short-term price movements become much more important. So, if you are looking for penny stocks to buy during a market crash, focus on those that have strong fundamentals and are less likely to be impacted by the current market conditions.
Penny stocks are never easy to invest in, but understanding the key factors that drive the stock market will put you in a much better position to make money. With that in mind, let’s take a look at three hot penny stocks to watch with the market falling again.
3 Penny Stocks to Watch With the Stock Market Declining Right Now
- Bitnile Holdings Inc. (NYSE: NILE)
- Gingko Bioworks Holdings Inc. (NYSE: DNA)
- Sorrento Therapeutics Inc. (NASDAQ: SRNE)
Bitnile Holdings Inc. (NYSE: NILE)
During trading on May 2nd, shares of NILE stock managed to climb by over 1.3% at EOD. This comes after a one-month drop of more than 43%, which is quite substantial. As a result of this major bearish decline, there could be a possibility that some investors believe NILE stock is a value buy.
However, to understand this further, we have to take a closer look at the company and any recent news. During trading yesterday, the company announced its Bitcoin mining and production operation report. It stated that it has increased its number of S19j Pro Antminers to over 5,000, which should allow it to have an estimated annualized run rate of 474 Bitcoin.
“Our mining ability has reached what we consider to be significant levels in Michigan as we continue to receive more machines every month. Our focus remains on becoming one of the larger publicly traded Bitcoin miners in the country.”The Executive Chairman of Bitnile Holdings, Milton Ault, III
Right now, the price of cryptocurrency has continued to fall alongside the rest of the stock market. If you’re not familiar, Bitnile is a holding company that operates mining centers where it mines Bitcoin. So, with all of this news in mind, do you think that NILE is worth adding to your list of penny stocks to buy or not?
Gingko Bioworks Holdings Inc. (NYSE: DNA)
At EOD on May 2nd, shares of DNA stock managed to climb by around 7.9%, which is quite a substantial move for the company. While we do see many penny stocks climb and fall with little to no news, today, DNA made an exciting announcement.
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On March 28th, the company posted its Q4 and full year 2021 financial results. In the report, the company posted $314 million in total revenue. This is a staggering increase of over 309% over the previous year. Additionally, the company announced 31 new Cell programs in 2021, which is a 72% growth rate over 2020.
“The current market environment provides both challenges and opportunities, but I’ve never been more excited about Ginkgo’s future. We met or exceeded each of our publicly disclosed metrics in 2021, some significantly, and we believe we are in the strongest position that we’ve ever been in as a company.”The CEO and Founder of Gingko, Jason Kelly
This is all great news for the company and shows that DNA stock could be worth keeping an eye on. Whether DNA is a worthwhile add to your penny stocks watchlist is up to you.
Sorrento Therapeutics Inc. (NASDAQ: SRNE)
With over 7% in gains at EOD on May 2nd, SRNE is another penny stock that investors are watching today. As a biotech penny stock, SRNE has seen heightened interest in the past few weeks. And with over 75% in losses in the last six months, there could be some left over value for investors to find with SRNE stock.
Given its trajectory, it is tough to see that SRNE stock is worth it. However, we can look at any recent announcements to see if there is any value with Sorrento Therapeutics. On May 2nd, the company announced full enrollment in its Phase 1 study of intranasal STI-9199, which is a shield against variants of Covid-19. This is big news for the company despite Covid cases continuing to fall. So, whether all of this makes SRNE stock worth buying or not is up to you.
Can Penny Stocks Climb This Month?
With a new month upon us, investors are looking for the best penny stocks to buy. While it is challenging given the sheer number of penny stocks out there, understanding what is going on is the key to profitability.
And right now, investors need to consider the U.S. economy as it is the main mover and shaker of the stock market right now. With that in mind, do you think that penny stocks can make a bullish turnaround this month?