Are Entertainment Penny Stocks Worth Investing In?
Entertainment penny stocks have remained some of the most popular penny stocks to watch during the pandemic. While case numbers are declining, there are still widespread stay-at-home orders abound. Additionally, the lasting effect on the pandemic means that the entertainment industry could remain on top for years to come.
When it comes to keeping up with current market trends, finding the best penny stocks to buy can be difficult. It changes month to month and can sometimes even change day to day. It requires investors to predict the public’s speculation and base it sometimes off incomplete information.
However, if done correctly, it can yield epic returns. As an investor, it’s key to consider these market reactions and base our watchlists on current events to keep us competitive. It keeps us on our toes and can provide us with a tremendous advantage when it comes to becoming a successful trader.
Most investors have been turning their attention to penny stocks during the COVID-19 pandemic. This is due to their fast-moving nature and tendency to follow trends of the larger blue-chip stocks. During the pandemic, a few specific sectors specifically have been showing consistent growth and in this article, we are going to cover a few penny stocks under $5 that should be considered for your watchlist.
Now, while it has been documented that penny stocks tend to follow trends, their high volatility can also pose a considerable risk. If risk is something you are looking to avoid you may want to consider more long-term penny stock investments. It is crucial that you generate a watchlist based on your investment objectives. With this in mind, the high volatility that penny stocks offer can be in use as an advantage. Especially if done correctly.
For many, quarantine has been a challenge. Gone was the excitement that daily in-person work-life brought. Gone were the weekend gatherings with friends or family. A new source of entertainment was in demand, and that came in a variety of forms.
The list includes a variety of options including but is not limited to, video games, television, socially distanced sports, and trading. Because of this, it came as no surprise that the valuation for blue-chip companies that relied on in-person entertainment plummeted. This occurred while others, like Google, Amazon, and Netflix, showed tremendous growth.
Now the entertainment penny stocks to watch we cover today are only a few of the many offered. But, it provides both new and experienced investors an insight into what additional factors should be considered when investing in penny stocks in 2021. So, without further ado, let’s dive in.
3 Entertainment Penny Stocks To Add To Your Watchlist
- Drive Shack Inc. (NYSE: DS)
- Allied Esports Entertainment Inc. (NASDAQ: AESE)
- RealNetworks Inc. (NASDAQ: RNWK)
Drive Shack Inc. (NYSE: DS)
If you’re looking for a penny stock that provides in-person socially distanced entertainment, Drive Shack Inc. might be one to watch. With COVID becoming more under control, in-person activities are becoming a popular outlet for those feeling socially deprived. Currently a leader in golf-related entertainment and leisure, DS stock looks to bring people together through competitive socializing.
“I am thrilled to partner with the Drive Shack team on their new entertainment golf experience. Once Covid is under control, the ability to combine high-tech mini-golf with a high-quality food & beverage menu will make Puttery a great experience for any social gathering.
I am personally making a financial investment in the growth of future Puttery venues across the country and can’t wait to debut our first Puttery in Dallas this summer.”
Rory McIlroy (Formerly ranked #1 Golfer in the world)
DS operates through Entertainment Gold Venues and Traditional Golf Properties segments, which runs entertainment golf venues in North Carolina, Virginia, and Florida. With a market cap of near $280 million, analysts indicate that there is a potential upside of 58.9%. With this in mind, is DS a penny stock you want to add to your watchlist?
Allied Esports Entertainment Inc. (NASDAQ: AESE)
If you see online Esports as a more valuable enterprise nowadays, Allied Esports Entertainment Inc. could be worth keeping an eye on. This innovative company was on the ‘Fast Company’s World’s Most Innovative Companies list for 2019,’ and continues to grow.
AESE has a large commitment to its mission of connecting players, streamers, and fans. It does this via integrated arenas and esports trucks around the U.S. These serve as both global gaming battlegrounds and everyday content generation hubs.
“Despite the unprecedented operating challenges and macro-economic uncertainty encountered throughout most of 2020 resulting from the COVID-19 pandemic, Allied Esports finished the year with a solid performance in the fourth quarter.
The In-person pillar of our business model remains the primary near-term growth driver of our Esports business, and this activity was significantly curtailed globally during the pandemic due to operational restrictions, including limitations on social gatherings and other health and safety protocols.”
CEO of Allied Esports Entertainment Inc., Frank Ng
With relationships with Allied Esports Property Networks, AESE currently has 11 properties in the top three esports markets. Notable mentions being in Las Vegas, Orange County, Oakland, and Germany. Shares of AESE have seen a lot of bullish sentiment since November. Considering this, do you think AESE should be on your watchlist?
RealNetworks Inc. (NASDAQ: RNWK)
Founded in 1994 by an ex-Microsoft executive, Rob Glaser, RealNetworks Inc (RNWK) is a provider of AI and computer vision-based products. As one of the first in internet streaming media delivery software and services, this Seattle-based company provides both subscription-based online entertainment services as well as mobile entertainment and messaging services. As a software-based company, RNWK stock might be one to keep an eye on this upcoming month.
With a past of digital media expertise and impressive innovation, RNWK’s product portfolio includes the Kontxt semantic analysis platform and SAFR. SAFR is the world’s leading facial recognition platform for live video and is applicable for security, convenience, and analytics purposes.
Its price grew this year and reached a yearly high of $6.66 last month. Taking this all into account, RNWK might be one to watch in the upcoming months. With a push towards AI and facial recognition, RNWK is in a good position for future consideration. What do you think?
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