Buying Penny Stocks on August 5th? Here’s What You Need to Know
With another week of trading penny stocks coming to an end, there is a lot that investors need to know. Already in August, we have seen a major amount of movement across the board with both penny stocks and blue chips. And while it may seem complicated, there are plenty of ways to take advantage of this.
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In 2022, we have to consider every factor that is at play and how to use that as a benefit. This means keeping up to date with the news, and understanding the impacts it will have on your portfolio. With all of this in mind, let’s take a look at what you missed in the stock market on August 4th.
Stock Market Recap, August 4th
After a very volatile day of trading, investors saw their portfolios end mostly flat. The reason behind this has to do with the July’s jobs report that is coming out on Friday. During trading, the S&P 500 and the Dow Jones dropped by around 0.1% and 0.3% respectively.
In addition, we saw the price of WTI crude oil drop below $90 for the first time since February, which is a great sign for consumers. So, all of this shows that there is potential, but, investors should trade with a high level of cautious optimism. Considering that, here’s what you need to know about trading penny stocks on August 5th.
What You Need to Know About Buying Penny Stocks on August 5th
As stated before, right now, the key to making money with penny stocks is to understand what is going on in the stock market. And on August 5th, the largest factor will be the July jobs report. So, keep that in mind and make sure you know what the impact of it will be.
In addition to this, we expect that volatility will continue into the near future. For that reason, it is crucial to stay one step ahead in order to have the best chance of making money with penny stocks. With this in mind, here are three penny stocks to add to your watchlist right now.
3 Penny Stocks to Watch Right Now
- Evofem Biosciences Inc. (NASDAQ: EVFM)
- American Virtual Cloud Technologies Inc. (NASDAQ: AVCT)
- Athenex Inc. (NASDAQ: ATNX)
Evofem Biosciences Inc. (NASDAQ: EVFM)
One of the larger movers on August 4th is EVFM stock. During trading, shares of EVFM stock shot up by around 3.2%. And, during after hours, we saw a major climb of over 24%, which is quite substantial. The biggest news from the company came today when it announced its second quarter financial results.
In the results, it announced 42% in growth for its Phexxi product as well as a reduction of operating expenses by 8%. Both of these are very positive numbers and indicate strong growth for Evofem Biosciences. Considering all of this, do you think that EVFM stock is worth adding to your list of penny stocks to buy or not?
American Virtual Cloud Technologies Inc. (NASDAQ: AVCT)
Another decent gainer on August 4th was AVCT. During trading and into after hours, AVCT stock managed to push up by over 4%. This is a decent gain for the company and one that comes after a six month drop of over 80%. So, is there any news that is driving the movement for AVCT stock?
The short answer is no, the company did not release any news on August 4th. However, we are seeing a major spike in search volume for the company including popularity on Reddit, Twitter and other social media sites. This is often a cause for movement with penny stocks and is likely the reason behind AVCT stock gain during trading today.
Athenex Inc. (NASDAQ: ATNX)
While ATNX stock shot up by over 8% during trading on August 4th, in after hours, ATNX stock shot up by over 69% in after hours. This is a major gain for the company and one that comes after a recent announcement. Today, the Economic Times reported ‘Intas & Dr. Reddy’s in race with PEs to buy US’ Athenex.’
This is a big deal, and caused a slew of volatility at the end of the day on August 4th. Often, we see news like this have a material impact in a very short time frame. However, it is crucial to consider that this is a short term move. So, if you’re interested in a very volatile penny stock, ATNX could be worth watching.
Which Penny Stocks Are You Watching Right Now?
Finding penny stocks to buy in 2022 is a challenge. One week, penny stocks and blue chips are up with major bullish sentiment, and the next week the market is down. This is characteristics of the stock market we’ve seen in the past two years.
So, to use this as a benefit, investors need to understand exactly what is going on in the stock market and how to take advantage. This means reading the news, looking at press releases, and considering how macro and micro economic events will impact your penny stocks watchlist. With this in mind, which penny stocks are you watching right now?