Are These The Top Tech Penny Stocks to Watch This Month?
We all have seen the rapid growth of tech penny stocks over the last year. Additionally, in the past week alone, the tech industry has seen even more bullish sentiment. Throughout the pandemic, companies have worked to find new tech solutions to the work-from-home phenomenon. The result overall from the pandemic has been an increase in demand for technology, especially digital-related tech.
Now the pandemic is slowing down, with COVID cases rapidly falling in the United States. About 40% of the population has received at least the first dose of the vaccine. Companies are starting to show better performance as a result of the economic recovery. This is causing many penny stocks to move upwards as time goes on.
Sometimes when large-cap tech stocks are not doing well, tech penny stocks see an opportunity to shine. This is just one example of the many things that affect this sector.
Many stocks under $5 have seen consistent growth over time which appeals to long-term investors. Numerous tech penny stocks have also seen large jumps overnight which could appeal to those who swing trade or day trade.
Before investing in penny stocks it is important to consider the company’s financial situation. Does the company have a lot in its pipeline, or will its gains be short-lived? This question can help determine where a penny stock may go. Whether fintech, entertainment, vehicles, or another type of tech, there are plenty of options for those making a tech-focused penny stock watchlist. Keeping this in mind, let’s have a look at four tech penny stocks that are showing solid performance right now.
Tech Penny Stocks To Watch
- Future FinTech Group Inc. (NASDAQ: FTFT)
- Genius Brands International Inc. (NASDAQ: GNUS)
- Sonim Technologies Inc. (NASDAQ: SONM)
Future FinTech Group Inc. (NASDAQ: FTFT)
Cryptocurrency is on fire right now and continues to draw new investors into companies working on this novel technology. It seems as though everything crypto or blockchain-related is seeing renewed interest as companies continue to find new uses for it. Future FinTech Group is a leading blockchain-based e-commerce business and fintech service, provider.
On April 14th, Future Fintech announced that it had signed an equity acquisition framework agreement to buy 51% of Mingtang Network Technology Co. Mingtang operates a crypto mining farm with a 50,000 capacity load for machines. It additionally has 300,000 sets of mechanical and electrical equipment on standby. This acquisition was completed with $7 million in cash.
Originally this news did not result in too much upside for Future Fintech. However, in the long term this could change. On April 21st the company announced that it has signed a term sheet to purchase a money payment service company. This $820,170 deal will have Future FinTech acquire 100% of Khyber Money Exchange Ltd.
The CEO of Khyber Rahim Sham stated, “The potential acquisition by FTFT will help Khyber Exchange expand it’s business and operation in Asia, especially in the fast-growing Chinese market.”
It seems like these recent acquisitions have a lot of potential for Future FinTech. Since this second acquisition was announced, FTFT stock price has gone up about 25%. Nearly 20% of that was on April 26th. Just 6 months ago FTFT was a stock under $2, and now it sits around the $4 mark. Cryptocurrency and blockchain are a huge deal and companies are just tapping the surface of their potential. For this reason, FTFT stock could be worth watching.
Genius Brands International Inc. (NASDAQ: GNUS)
Genius Brands International is an entertainment company that creates and licenses content. The company is seeing upward momentum after the premiere of its “Stan Lee’s Superhero Kindergarten” show starring Arnold Schwarzenegger. The premiere brought in more than 2 million viewers on its opening weekend.
The company is heavily marketing the show using advertising, television appearances, social media, influencers, and more. For example, Schwarzenegger is appearing on Jimmy Kimmel Live! on April 26th to promote the show. After the news broke of its viewership numbers, GNUS stock pushed up by nearly 11%.
Genius also recently partnered up with Cinedigm (NASDAQ: CIDM) for its family-friendly content streaming channel “Kartoon Channel!”. As a part of the deal, Cinedigm will offer some of its most popular films on every platform distributing the “Kartoon Channel!” such as Apple Inc. (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and more.
Sonim Technologies Inc. (NASDAQ: SONM)
SONM stock has not had the most positive momentum in the past few months. However, shares of SONM are up by around 11% in the last 5 days. Whether or not this is signaling new hope for the tech company is up to you. For some context, Sonim is a tech company that provides distribution, systems design, and integration services for the technology industry.
On April 15th, Sonim signed an agreement with SYNNEX Corporation (NYSE: SNX) to distribute products in North America. In the agreement is the distribution of Sonim’s RS60 and RS80 rugged SmartScanners and XP8 ultra-rugged smartphones.
“Members of the Sonim management team have a history of working with SYNNEX and know first-hand the very strong relationships they have with their large community of resellers serving the mobility, industrial, enterprise, and public safety industries.”
Chief Marketing Officer of Sonim, John Graff
The company believes its product can lower the total cost of ownership to consumer devices because of durability and improvements. The devices will also allow for frontline workers who need to capture large amounts of data in a fast manner to accomplish that with ease. This announcement comes after the company reported very positive fourth-quarter financial results back in March. On April 26th, SONM stock is up nearly 4%.