Tech Penny Stocks: Key Takeaways
- The market loves tech penny stocks for their volatility…
- Lockdowns brought more juice to trading tech pennies…
- Hot trends can help shoot these stocks higher…
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Penny stocks are always fun for the traders who love action and maybe even a little drama. And there are hot pockets in this niche. One of the most popular sectors is tech. Read on to see why tech penny stocks are a must-watch for traders.
- Aterian, Inc. (NASDAQ: ATER … read my analysis below)
- Sphere 3D Corp. (NASDAQ: ANY … read my analysis below)
- 9F Inc. (NASDAQ: JFU … read my analysis below)
- Powerbridge Technologies Co., Ltd. (NASDAQ: PBTS … read my analysis below)
- Exela Technologies, Inc. (NASDAQ: XELA … read my analysis below)
Table of Contents
Tech Penny Stocks Background
Penny stocks are volatile, which makes them risky. That’s why the market loves them.
Lockdowns brought new traders to the market last year, and you can see it in penny stock trading volume. We’ve seen so many good setups…
The market loves tech stocks in general. But it REALLY loves tech penny stocks.
Look at the Invesco S&P SmallCap Information Tech ETF for example … It rocketed up over 62% in the past year.
PSCT isn’t the perfect picture of the tech penny stock market, but it’s close enough.
Some of the best trades over the past year have been tech penny stocks. Positive news or buzz can send these things flying!
Want more guidance on your trading? Check out our SteadyTrade Team!
5 Tech Penny Stocks to Watch
Want to trade these stocks? Go in prepared. Both day traders and swing traders can find juicy opportunities in this niche…
Here are five worth keeping an eye on now.
#1: Aterian, Inc. (NASDAQ: ATER)
Aterian uses artificial intelligence and machine learning to help sell consumer products.
The company combs through consumer data points like ratings, reviews, and rankings to design products that customers are looking for. Aterian uses its technology to find what people want to buy … Then, they make it. The company has over 2,000 products in its portfolio.
The more people shop, the more Aterian learns. Aterian mostly sells these products on Amazon, which has become a pretty decent place for selling.
ATER stock recently had a huge sell-off after falling short of Wall Street’s expectations… Even though Aterian grew revenues by 14%.
The company consistently makes more money than the year prior and it is on pace to do the same this year. Still, the stock’s down 88% since almost hitting $50 in February… And shorts love it.
Beaten-down stocks aren’t always great plays … But they can be. Some good news may entice traders and big volume.
ATER YTD chart (Source: StocksToTrade)
#2: Sphere 3D Corp (NASDAQ: ANY)
Sphere 3D is a data management company that provides virtualized desktop and application solutions.
Yeah, I know that might not make sense. Let me try to explain…
Sphere 3D wants to put desktops and applications into the cloud. This means that you’d access your desktop and applications on a server somewhere in the world.
So instead of logging onto your computer and having a unique desktop with unique problems, you’d access one that a bunch of other people also use…
If you still don’t get it, that’s OK. I’m not sure I do either. And there’s more to note about the company…
Sphere 3D provides the data management services a lot of businesses look for. It’s also aggressively jumping into the cryptocurrency mining space.
Shares spiked recently after Sphere 3D sponsored the IPO for Minority Equality Opportunities Acquisition. It also acquired the exclusive rights to Hertford Advisors Bitcoin mining assets…
ANY has jumped over 50% since the beginning of September. Not hard to see why it’s on our list of tech penny stocks.
ANY 3-month chart (Source: StocksToTrade)
#3: 9F Inc (NASDAQ: JFU)
Next on our list of tech penny stocks to watch is 9F. This is a financial services company in China.
The company recently announced that it’s shifting its focus solely to the investment and trading of blockchain-based digital securities. It will also focus on stock trading in the U.S. and Hong Kong…
9F claims that its motivation for making this shift is to protect its 113 million users from the risk that internet-based credit facilities and loan facilitation businesses raised by issuing debt during economic downturns.
The company essentially says that it wants to be the Robinhood or Charles Schwab of China … but available to global investors and traders.
I mean … why not? There will probably be too many ‘new age’ online brokerages to count here pretty soon, though.
JFU has struggled financially in the past couple of years. The stock is up 27% over the past year and has put in some strong runs…
JFU 1-year chart (Source: StocksToTrade)
#4: Powerbridge Technologies Co., Ltd. (NASDAQ: PBTS)
Powerbridge Technologies is a software-as-a-service company that is also engaged in blockchain applications.
The company just announced its Ethereum mining operating system called FXOS. The system is automated and can supposedly improve mining efficiency by 15%…
Crypto mining is a recent addition to Powerbridge’s portfolio. On top of the FXOS release, PBTS bought 5,600 Bitcoin and Ethereum mining machines.
Powerbridge is focused on growth and willing to spend to make that growth happen. It nearly doubled its losses to end 2020…
PBTS may start seeing better returns on its business if its crypto mining goes well. The market hasn’t really liked it much to this point.
It has had some runs, though. That big spike in February sticks out. You know the market loves a former runner. AND it’s a low floater!
This is a Chinese tech penny stock, however. You never know what their regulators could do. So be careful with this one.
PBTS 2-year chart (Source: StocksToTrade)
#5: Exela Technologies, Inc. (NASDAQ: XELA)
Exela provides transaction processing services and info management for businesses.
This is a fairly large company with 18,000 full-time employees … But its business hasn’t done enough for XELA to break out of the penny stock mold.
The company consistently clears $1 billion in annual revenue but has yet to record a profit. In fact, it saw a 17.3% decrease in revenue in 2020.
Exela continued to struggle this year. Its revenues have decreased since the beginning of 2021, and it might fall short of last year’s total revenues.
The company blames its struggles on COVID. It tried to use the release of two new services — DrySign and Digital Mailroom — as a sign of future hope for growth. Both services have done well so far … But we’ll see in the next quarter if they can really help Exela grow.
Shaky business is a part of the penny stock trading game. XELA has had two big runs in 2021, so it’s worth watching.
XELA YTD chart (Source: StocksToTrade)
Tech Penny Stocks: Conclusion
Tech penny stocks are a fun watch for any trader who likes the potential of those massive, wild run-ups that can take the market by storm…
Penny stocks are crazy in general. But tech is almost always a hot sector, giving tech pennies the volume necessary for huge runs.
Keeping up with the best setups can be a lot easier when you use awesome tools, like StocksToTrade and the Breaking News Chat feature. You can get a 14-day trial of both for just $17!
I also analyze the market and the best setups each day at 8:30 Eastern in my Pre-Market Prep sessions. If tech penny stocks are hot, we’ll discuss them…
OK, you have the tools. Now it’s time to build your watchlist and get to work!
How do you trade tech penny stocks? And what are your top strategies? Let me know with a comment below!