Buying Penny Stocks on May 13th? Here’s What You Need to Know
After another tough day of trading for penny stocks and blue chips, there is a lot for investors to know. To understand what is going on in the stock market and how to take advantage, investors need to look at the news, recent announcements, and any upcoming updates. This will give you the best chance at making money with penny stocks in 2022. For that reason, let’s take a look at the stock market recap and what you may have missed during trading yesterday on May 12th.
Stock Market Recap, May 12th, 2022
On May 12th, ears surrounding more inflation and rising interest rates have continued to push volatility even higher. As a result, the S&P 500 continued to fall, which puts it at an 18% drop since its high on January 3rd. For the week, we see the Dow Jones and NASDAQ Composite with losses of 3.6% and 6.4% respectively.
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And on top of this, the price of Bitcoin has continued to fall, with the coin dipping under $27,000 for a period of time on Thursday. So needless to say, trading penny stocks and blue chips as of late, has not been easy or for the faint of heart. With that in mind, let’s take a look at what you need to know about trading penny stocks moving forward.
What to Know About Trading Penny Stocks Right Now
Right now, there are a few factors that all investors should consider. For one, we have rising inflation and interest rates. These two have been the largest proponents of a bear market in the last few months, and it doesn’t look like anything is changing anytime soon. As the Fed continues to attempt to combat inflation, the markets continue to react in a negative way.
So right now, trading is all about understanding where to look to find potential value. While it is impossible to predict a market bottom, many traders believe that there are plenty of undervalued stocks in the market right now. Considering this, here are three penny stocks that pushed up during after hours on May 12th.
3 Penny Stocks to Watch Today
- Vinco Ventures Inc. (NASDAQ: BBIG)
- Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)
- Markforged Holding Corp. (NYSE: MKFG)
Vinco Ventures Inc. (NASDAQ: BBIG)
During trading on May 12th and after hours, shares of BBIG managed to climb by over 6% and more than 8.5%. This is an exciting gain considering shares of BBIG stock have fallen by around 20% in the past five days.
The most recent news from the company came on May 5th when it announced the record and distribution date for the planned business separation of Cryptyde. On May 18th, each Vinco shareholder will receive one share of Cryptyde for every ten shares of BBIG that they own. With this exciting news in mind, does BBIG deserve a spot on your penny stocks watchlist?
Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)
Another decent gainer during trading and after hours on May 12th was Tonix Pharmaceuticals. By EOD, shares had shot up by more than 8% including its after hours uptick. A few days ago, Tonix reported its Q1 2022 financial results alongside operational highlights.
In the results, the company posted that it had cash on hand of $140 million, with several major trials in the works. This is a big deal and is aided by the fact that biotech penny stocks are heavily in focus right now. So, while TNXP stock is highly volatile, it could be worth adding to your list of penny stocks to watch.
Markforged Holding Corp. (NYSE: MKFG)
With over 11% in gains at EOD on May 12th, MKFG is another penny stock that investors are paying attention to in May. In the past six months, shares of MKFG stock have fallen by around 60%. The most recent news for the company came on May 12th when it announced its Q1 results.
In the results, MKFG posted a revenue increase of 8.6% YoY to more than $21 million. Additionally, it announced a Non-GAAP gross margin of 53.6%, which is compared to 60.7% in Q1 2021. With cash on hand of over $269 million, it looks like Markforged is in an advantageous financial position right now. Whether that makes it worth buying or not is up to you.
Which Penny Stocks Are You Watching Right Now?
If you’re looking for the best penny stocks to buy, there are hundreds of options to choose from. But, with so much volatility in the stock market, it can be difficult to find the best ones for you.
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Now, understanding exactly what is going on with penny stocks and blue chips, is crucial to making a profit. Considering this and the current state of the stock market, which penny stocks are you watching right now?