Whether you’re looking for your next big investment or want to find a quick hit of volatility, penny stocks are back in focus. Thanks to the stock market sell-off over the last few months, countless companies have come under pressure. As they say, pressure makes diamonds, and that has translated in the stock market in 2023.
Are Penny Stocks Worth It?
Take a look at companies like Carvana (NYSE: CVNA). It sold off until reaching sub-$4 levels. From the ashes rose the phoenix, with CVNA stock ripping to highs of over $50. You can also see this in other companies like popular meme stock GameStop (NYSE: GME). While it’s a far cry from its prices of over $400, it’s still trading significantly higher than where it was prior to the pandemic.
We actually discussed the company when it raised attention from Michael Burry at the time. In the article Penny Stocks To Buy Or Sell In September: GameStop (GME) we discussed the unusual action from The Big Short investor. Shares traded below $4 at the time, and unwitting investors would ultimately see it surge to record levels later on. GME stock presently sits around $13.
Penny Stocks To Buy Now
What are better known as “Household stocks,” are referred to as such because they’ve got well-known names and brands. While it isn’t always the trend that you find household names trading at penny stock levels, the goal is always the same: buy low, sell high, profit, repeat. In many cases, the names don’t matter as much as the stock market action or momentum.
However, if you’re someone looking to invest in penny stocks, then things like household stocks my bring more psychological confidence than anything else. Obviously, that doesn’t mean the beaten-down stocks won’t go lower. But if it’s a matter of putting a well-known company on your list of penny stocks versus a company that is a start-up, some will choose the name.
Needless to say, in this article, we’re looking at some of the most active penny stocks today, regardless of having a household name or not. We look at recent catalysts, news, and sentiment to help give insight into what’s happening in the stock market today for these companies. Once you see the info, you can decide if they’re worth adding to your penny stocks to watch list before next week.
- Intrusion, Inc. (NASDAQ: INTZ)
- Bakkt Holdings, Inc (NYSE: BKKT)
- Talkspace, Inc. (NASDAQ: TALK)
Intrusion, Inc. (INTZ)
Intrusion, Inc. is a cybersecurity company from Plano, Texas. They specialize in preventing cyberattacks through a proprietary threat intelligence database. Their product, Intrusion Shield, is a Zero Trust, reputation-based security solution. It boasts a significant threat intelligence database, driving Intrusion Shield. It integrates with existing infrastructure to block malicious traffic and enhance overall cybersecurity posture.
This database includes data on over 8.5 billion IP addresses, with historical data, known associations, and behavioral patterns. The product, which was first launched commercially in 2021, is designed to prevent zero-day and ransomware attacks by observing traffic and instantly blocking suspicious connections. The company also plans to announce its financial results for the third quarter of 2023 on November 14, 2023, after the market closes. So if it’s on your list, keep that in mind later this month.
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Investors will likely be scrutinizing the performance of Intrusion Shield to gauge its market acceptance and contribution to revenue. The effectiveness of the company’s solutions against the backdrop of a rapidly evolving cyber threat landscape could significantly influence investor sentiment as well.
Another positive that investors are hanging onto is the above-the-market offering the company announced this week. Heavy insider participation has also brought optimism to INTZ stock. “We are excited to announce that we have entered into an above-market price Securities Purchase Agreement through a Private Offering,” said Tony Scott, CEO of Intrusion. “The Offering also marks an important step for Intrusion as we continue to focus on ensuring we have the funds we need to propel our growth and focus on satisfying our customers’ needs with cost-effective cybersecurity solutions for their enterprise.”
Bakkt Holdings, Inc (BKKT)
Bakkt Holdings, Inc. is a company specializing in cryptocurrency services. They are expanding their global footprint and recently announced several international market entries. It is partnering with existing and new clients, focusing on Latin America, Europe, and Asia. In Latin America, Bakkt is collaborating with Hapi to enhance crypto trading in Mexico, Argentina, and soon Brazil. In Europe, Bakkt plans to launch in Spain and offer services in the UK and EU with 3.0verse.
For the Asia market, Bakkt’s partnership with 3.0verse will extend to Hong Kong and Singapore. The CEO, Gavin Michael, emphasized Bakkt’s regulatory compliance as a strength in their global expansion. Domestically, Bakkt is also expanding its institutional client base, joining EDX Markets’ clearing house and custodial network. Michael highlighted Bakkt’s focus on stable, long-term revenue through subscription-based services, despite recent share price volatility.
This expansion could positively influence sentiment around Bakkt. By entering new markets and diversifying its client base, Bakkt could see an increase in business activity. However, global expansion also brings challenges like regulatory compliance and market adaptation. These factors, along with the recent volatility in the BKKT stock price, could bring some pause to an overly bullish stance on its prospects.
Talkspace, Inc. (TALK)
Talkspace, Inc. is a virtual behavioral healthcare company. They specialize in accessible mental healthcare services.
In their Q3 2023 report, Talkspace revealed significant financial improvements. B2B payor revenue grew 132% year-over-year. Total revenue reached $38.6 million, a 32% increase from the previous year. This growth was driven primarily by a 79% increase in B2B revenue, despite a decline in consumer revenue. Gross profit rose to $18.8 million, a 29% increase.
However, gross margin slightly declined due to a shift towards payor revenue. Operating expenses decreased by 30%, contributing to a reduced net loss of $4.4 million. Adjusted EBITDA loss improved significantly by 82%, showing a promising trend toward financial stability.
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For FY 2023, Talkspace forecasts revenue around $146 million, higher than previous estimates. The company aims to reach break-even Adjusted EBITDA by Q1 2024, with a projected cash balance of approximately $120 million. CEO Dr. Jon Cohen highlighted the momentum in their payor business, driven by demand for quality in-network benefits. CFO Jennifer Fulk emphasized progress towards break-even and improving clinical operations.
