Buying Penny Stocks on June 17th? Here’s What You Need to Know
After another dismal day of trading penny stocks and blue chips, investors are excited for a new day. On Thursday, we saw major bearish sentiment that slides us even further into a bear market.
And while this is in no way a good sign for investors, penny stocks don’t typically like to play by the rules. This means that even on bad days of trading for the stock market as a whole, we will see some penny stocks make gains. So, with this in mind, let’s take a more in-depth look at what you may have missed on June 16th, 2022.
Stock Market Recap, June 16th, 2022
As stated earlier, June 16th was another major bearish day for the stock market. At EOD, the S&P 500 had fallen by over 3% to around $3,666. And, the NASDAQ Composite dropped by around 4%, which is a very large fall. The majority of this move comes as the Fed announced a 75 basis point rate hike, the first of its kind since 1994. And while this news was initially accepted well by markets yesterday, today showed otherwise.
So, make sure to keep this in mind as we move forward. And while we don’t expect volatility to slow down anytime soon, these major drops do present investors with an interesting opportunity to find penny stocks and blue chips at low prices. Considering this, here’s what you need to know about trading penny stocks today.
What to Know About Trading Penny Stocks Today
After the market closed on June 16th, we saw stock futures begin to climb slightly. This is typically the case after a major bearish trading day. While the gain for Futures was modest, it is an okay sign considering the incredible losses witnessed during the trading day. For the week, the S&P 500 is down by around 6% which other indexes following suit. So, keep this in mind as we move into the final trading day of mid-June.
3 Penny Stocks to Watch Right Now
- Electric Last Mile Solutions Inc. (NASDAQ: ELMS)
- Imperial Petroleum Inc. (NASDAQ: IMPP)
- Skillz Inc. (NYSE: SKLZ)
Electric Last Mile Solutions Inc. (NASDAQ: ELMS)
During trading and after hours, shares of ELMS stock shot up by an incredible 100% and over 30% respectively. These explosive gains represent a turnaround from its major bearish performance in the past few weeks. The biggest news for the company recently came at the beginning of the week when it announced that it would declare Chapter 7 bankruptcy.
This comes only a year or so after the company went public. And while it is tough to say why shares are climbing following this news, it could be due to ELMS being at very low levels right now. With this in mind, do you think ELMS is worth adding to your list of penny stocks to buy or not?
Imperial Petroleum Inc. (NASDAQ: IMPP)
Another penny stock that saw suitable gains during after hours trading on June 16th is IMPP stock. During after hours, shares of IMPP managed to shoot up by over 12.8% to over $0.62 per share. In the past month or so, shares of IMPP stock have climbed by around 9%, which is quite good considering the trajectory of the market during that time.
The biggest recent news for the company came earlier this week when it reported its Q1 2022 financial results. In the results, it stated that its Q1 revenue of $5.1 million is 28% higher than its revenues in Q4 2021. This is a big increase and something that investors should keep in mind. So, whether this makes IMPP worth adding to your penny stocks watchlist is up to you.
Skillz Inc. (NYSE: SKLZ)
Despite Skillz 8% drop during trading on June 16th, it managed to climb by around 2.3% during after hours. In the past month, shares of SKLZ stock have fallen by around 30%, which is not a great sign for investors to consider. The main reason for this comes as research showed that total gaming revenue fell by around 19% YoY in May.
This research from NPD Group, is a big deal as Skillz is a mobile gaming platform. With Apple’s App Store seeing a 2.5% decline and Google Play store seeing a 23% drop during May, this report is concerning. So, at its new low price, does SKLZ have any value for investors?
Which Penny Stocks Are You Watching Right Now?
Finding the best penny stocks to buy can be challenging. But, because there are so many options, it can be much easier than previously imagined. Now, with the large amount of volatility that is in the stock market right now, investors need to be on their toes constantly.
This means understanding what is going on in the world, the U.S. economy, and in specific sectors. All; of this information will help to give you the greatest chance of making money with penny stocks in 2022. With this in mind, which penny stocks are you watching today?