Tech Penny Stocks Are on Fire, Here’s 3 You Need to Look At
Tech penny stocks have found themselves in a favorable position in both international and domestic markets. Every year these penny stocks continue to increase in popularity. This is illustrated by well-known ETFs such as the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) and Invesco QQQ Trust (NASDAQ: QQQ).
Investors continue to understand that innovation will always be the main factor in promoting growth. This has resulted in the industry being considered one of the driving forces leading the bullish market we have witnessed in the past decade. Large tech companies such as the FAANG stocks, guide innovation in the US and drive healthy competition in other markets as well. And with so many penny stocks to watch working in tech, the opportunities are endless.
As the sector continues to flourish, new companies are being formed every day providing investors with potentially lucrative opportunities. Many use tech penny stocks specifically as a financial tool when making a penny stock watchlist. The high volatility and speculative nature of tech offers potentially high returns due to compelling products and services.
With the competitive environment, the tech industry generates, acquisitions are a common practice among larger companies. This provides small-cap stocks with unique growth potential that larger-cap companies rarely see.
Investors looking for rapid growth in a short period, usually turn to penny stocks. These investors typically have a higher tolerance for risk as volatility is extremely high. However, you can mitigate risk with proper research.
This includes looking over public financials, company statements, and future projects. There is a great deal of gut-feeling involved as well, but by looking at the penny stock’s past performance you can gather a better understanding of how it trades.
The tech industry is taking strides alongside the market as a whole and deserves further examination. As COVID-19 related events continue to unfold, the tech industry seems to be in a favorable position. Given this, you should consider what this means for your portfolio moving forward. With this, here are three tech penny stocks that could be worth considering for your watchlist.
3 Must Watch Tech Penny Stocks For May:
Cyren Ltd. (NASDAQ: CYRN)
With more and more businesses using online platforms for financial transactions as well as data storage, cybersecurity has never been more important. Protecting your information from hackers is just as sensible as having a lock on your front door. Cyren Limited has seen this significant demand and built its company around it.
CYRN focuses on providing cloud-based security solutions which include web and electronic mail security, cyber intelligence, malware attack detection, mobile security, phishing intelligence feed, and anti-spam.
Founded in 1991, CYRN was ahead of its time when it came to cyber protection. Its foresight has helped it ever since, recently joining one of the most comprehensive security marketplaces known as the Palo Alto Networks Cortex XSOAR Marketplace. Its recent Threat InDepth offering provides security analysts with a better way to conduct risk assessments and respond to threats promptly.
CTO of CYRN, Dr. Richard Ford, noted, “We are excited to join the Palo Alto Networks ecosystem to enable our shared customers to simplify and automate their security processes and help them stay ahead of the threats they are facing every day.”
Given the importance of cybersecurity and the increasing demand for tech, CYRN could be a tech penny stock to watch.
MoSys Inc. (NASDAQ: MOSY)
We have covered MoSys Inc. steadily over the past few weeks. For those unfamiliar, MOSY is another tech penny stock that could be worth watching. It specializes in intelligent data access and data decisions for cloud networking, security, tests, and measurement.
By providing the hardware, software, and firmware solution, MOSY is also at the forefront of the online security industry. Founded in San Jose in 1991, its product line includes an impressive array of technologies. This includes blazar accelerator engine ICs, 100G line speed products, and development kits.
This past year MOSY has grown by over 120% and plans to continue innovating with its strong pipeline. Both its Blazar family of accelerator engines and high-speed memories have unmatched intelligence and ability when it comes to eradicating data access bottlenecks. Additionally, its family of virtual accelerator engines includes known software such as FPGA RTL and RISC-based firmware. This technology can work across a broad range of silicon chips, even those not made by MoSys.
“With over $11 million in cash and investments as a result of our registered direct offering and warrant exercises during the first quarter, we are in a stronger financial position in 2021. We continue to closely manage our expenditures and inventory levels, as we invest in developing our VAE IP solutions, while also preparing to capitalize on new market opportunities as the overall supply environment begins to normalize.”
Dan Lewis, CEO of MOSY
Lewis goes on to state that “Looking ahead, we are encouraged by the initial indications of a global economic recovery and believe it will have a positive impact on the markets in which we operate.” Considering all of this, MOSY stock could be worth a first or second look.
Alfi Inc. (NASDAQ: ALF)
Another tech penny stock with a lot of bullish momentum right now is Alfi Inc. Growing by almost 40% since last week, this penny stock is already making a name for itself in the tech industry. ALF develops interactive artificial intelligence software. It does this through powerful machine learning algorithms and even more powerful computing engines.
The idea behind its products is to provide content publishers and brand owners with intelligent information about their target clientele without violating user privacy. Through the promise of transparency and accountability, ALF aims to maintain the integrity of the advertising marketplace.
Founded in 2016, ALF recently appointed Ron Spears as its new CRO. With over 20 years of industry experience and a prior Senior Vice President for Firefly, Mr. Spears will be in charge of global sales strategy and execution.
Mr. Spears commented, “The industry has never seen anything like this platform which is capable of providing rich data and analytical insights that can be used for real-time OOH ad optimization and agility along with interactive ads that bring in more dynamic experiences than static messaging. I see significant opportunity to grow Alfi’s market share globally.”
So, as a budding and innovative new kid on the block, ALF looks like it could have a lot to offer. While it is a rather volatile penny stock, it could be worth adding to your list of penny stocks to watch.
Are Tech Penny Stocks Worth It?
With much of the world still transitioning to high technology products, the U.S. is already a budding marketplace for the industry. Strong confidence in the technology sector by investors has established a bullish market. Tech penny stocks like the ones mentioned above could be worth adding to your penny stocks watchlist due to high speculation and the potential of future applications of their products.
By staying up to date with new technologies and companies, investors can take full advantage of this growing market. Done properly, with the correct research and analysis, tech penny stocks offer a high potential market for you to look into. With industries such as cybersecurity, AI, blockchain stocks, and more, pushing the boundaries of what’s possible, the opportunities are limitless. With this in mind, what do you think of tech penny stocks as we move forward?