This will likely be another active week for traders. Whether you’re trading penny stocks or higher-priced shares of companies like Tesla (NASDAQ: TSLA) and Apple (NASDAQ: AAPL), chances are you’re paying attention to stock market news headlines. In particular, Fed Chair Jerome Powell. When is Powell speaking this week?
Wednesday and Thursday, Powell will speak in front of the U.S. House Financial Services Committee and the U.S. Senate Committee on Banking, Housing, and Urban Affairs. This has brought some of the uncertainty back to the stock market. Now, volatility is picking up during the first half of the shortened holiday week.
With this type of sentiment, it is pushing attention to some of the most volatile issuers in the stock market today. I’m talking about penny stocks or stocks under $5. They are well-known for their likelihood of seeing explosive moves.
That goes for higher and lower moves, with a strong focus from retail traders. Almost daily, there are at least a handful of penny stocks seeing such moves. This week kicked off with the latest, VCI Global Ltd (NASDAQ: VCIG) rallying hundreds of percentage points from under $4 to over $11.
One of the driving forces of VCIG stock was AI-related news. Thanks to the momentum propelling AI stocks, and VCI’s announcement that it will distribute an AI-based “socialized messenger” communication application, the market reacted extremely bullishly. This has led traders to look closer at other cheap stocks to watch in the stock market today. In this article, we will discuss details of some of the most active penny stocks today and see what’s driving momentum so that you can gain some insight on whether to add them to your watch list.
Penny Stocks to Watch
Surface Oncology Inc. (SURF)
Biotech penny stocks have also been heating up this quarter, and Surface is one of the more active among the bunch to start the week. The company has been in the spotlight ever since last week’s update that Coherus would acquire it.
“This transaction is well-timed, as it coincides with the accelerating growth of our biosimilar revenues driven by the launch of CIMERLI® and near-term launch of YUSIMRY®. With the agreement to acquire Surface and the expected near-term approval of toripalimab, Coherus is positioned to become one of the very few I-O companies with demonstrated commercial expertise, significant product revenues, and unique, competitively positioned R&D programs addressing critical unmet medical needs,” said Denny Lanfear, Chairman, and Chief Executive Officer of Coherus.
There are several upcoming milestones that are also in focus. One is the expected clinical data from a Phase 2 study this quarter. This study is investigating the company’s SRF388 lung cancer treatment, SRF388 as a monotherapy as well as in combination therapy in liver cancer.
Despite several analyst downgrades and price target cuts to start the week, momentum seems to have returned to the penny stock after selling off on Friday.
SoundHound AI is also gaining interest, with AI stock sympathy momentum at the forefront. The company specializes in voice AI technology. It recently reported first-quarter earnings and posted 56% growth in year-over-year revenue. SoundHound also saw its gross margin climb from 51% to 71%, and adjusted EBITDA improved by 13% over the last year.
“The incredible surge in demand for conversational AI is giving SoundHound a unique advantage. As an established innovator with years of experience providing AI solutions to world-class brands, we’re fast becoming an obvious partner for businesses looking to harness emerging capabilities,” said CEO Keyvan Mohajer.
Last month, SoundHoud received a notice of allowance for a US patent application titled “Buildings A Natural Language Understanding Application Using A Received Electtonioc Record Containing Programming Code.”
This week, analysts weighed in. Cantor Fitzgerald reiterated its Overweight rating on the penny stock. Even though the firm maintains a $2.80 price target, lower than current levels, shares of SOUN stock continue trading higher on Tuesday.
MGO Global (MGOL)
Shares of MGO Global continued rebounding in the stock market today. The company’s business revolves around operating The Messi Store, which offers functional casual sportswear inspired by soccer player Leo Messi.
Prompting the latest move seems to be the company’s recent earnings update. MGO announced that total revenue for the first five months of 2023 exceeded those of the full year in 2022. Maximiliano Ojeda, Co-Founder, Chairman, and CEO of MGO, said, “Prior to the end of May 2023, MGO hit a significant milestone when our total revenues, on an unaudited basis, surpassed all of 2022 revenues, demonstrating the progress we are achieving with the execution of our growth strategies. With our full second-quarter results expected to be filed with the U.S. Securities & Exchange Commission on or before mid-August 2023, we look forward to providing much greater details of our financial performance for the three and six months ended June 30, 2023, at that time.”
The company previously explained that 2023 could be a “watershed year” based on its growth objectives. With the news that Lionel Mess is set to join Major League Soccer team Inter Miami for the upcoming season, Messi gear is gaining traction in the US market. This may have helped give a boost in the market for MGOL stock.