Some penny stocks are on fire to start the week. That’s partially thanks to an upbeat sentiment in cryptocurrencies like Bitcoin and Dogecoin right now. This past weekend, rumors emerged expressing Amazon (NASDAQ:AMZN) would start accepting Bitcoin by the end of the year.
Further rumors discussed that the company would develop its own currency by next year. According to an anonymous source talking to City A.M., “This isn’t just going through the motions to set up cryptocurrency payment solutions at some point in the future—this is a full-on, well-discussed, integral part of the future mechanism of how Amazon will work.”
Rumors are still just that; rumors. But these were enough to give a hefty spike in Bitcoin, Dogecoin, Ethereum & other cryptocurrency prices. With that has come a slew of momentum into both tech and cryptocurrency penny stocks today.
Tech Stocks Get Boost From Multiple Catalysts
You’ve also got other events like the debut of Lucid Motors (NYSE:LCID) on the New York Stock Exchange today. Previously known as Special Purpose Acquisition Company, Churchill Capital under the symbol CCIV, Lucid was going through the final steps of its reverse merger. Monday marked the official switch over to its new stock ticker, LCID. Given the growing interest in electric vehicle stocks, we’ve seen several names follow the LCID stock trend today as well.
Considering the overall bullish sentiment in tech and numerous industry catalysts, it could be time to look at more tech stocks today. Here’s a list of 5 that retail traders have looked to buy right now and could warrant some additional research.
Top Tech Stocks To Buy [Or Avoid]
- Cinedigm Corporation (NASDAQ:CIDM)
- Bit Digital Inc. (NASDAQ:BTBT)
- Hut 8 Mining (NASDAQ:HUT)
- Exela Technolgies Inc. (NASDAQ:XELA)
- Vinco Ventures (NASDAQ:BBIG)
Cryptocurrency Penny Stocks To Buy [or avoid]
It’s always an interesting scenario when you’ve got rumors spurring stock market momentum. Thanks to the Amazon speculation, Bitcoin prices have surged. With this jump has come plenty of attention on related crypto and blockchain stocks. However, is this just speculation, or is there some substance to these rumors? That’s one of the biggest questions today and one that could determine the longevity of this semi-bull run in certain companies.
Cinedigm Corporation (NASDAQ:CIDM)
While it isn’t necessarily a Bitcoin mining company, Cinedigm does have exposure to the crypto space. Initially, one of the entertainment stocks we’ve watched during the pandemic, the rise of non-fungible tokens or “NFTs,” has placed a different light on the company. In fact, this week, Cinedigm announced that it selected a new platform to release its NFTs on. Rad.live’s “Ara” platform offers a marketplace and hosting platform for Cinedigm’s plan for integrating NFT capabilities into its Matchpoint app. Matchpoint is Cinedigm’s content delivery platform for distributing digital content.
Through this latest deal with Rad.live, the companies will offer limited-edition Fandor Selects films and other content as NFTs via this Ara platform. Erick Opeka, President and Chief Strategy Officer at Cinedigm, said, “Partnering with Rad makes us the only company to offer turn-key NFT distribution options alongside subscription, digital distribution, on-demand, and linear revenue generation models. This is a huge competitive advantage in the streaming marketplace.”
Bit Digital Inc. (NASDAQ:BTBT)
Shares of Bit Digital also popped early this week. The company’s latest deal with Digihost, helped by overall industry momentum, acted as a strong catalyst for this move. Bit Digital and Digihost are planning to combine Bitcoin. This deal entails a 2-year agreement where Bit Digital will operate a 100 MW Bitcoin mining system for the term.
As an expansion on the already existing collaboration between the companies, this latest move is expected to increase the hash rate of the overall collaboration. That could translate into increased mining capabilities as well. In simple terms, higher hash rates can increase a miner’s chance of “finding” the next block in a blockchain and receiving a Bitcoin reward.
As previously announced, we anticipate significant purchase activity in the coming months, due to spot market dislocation in China and our unique access to that market. This agreement with Digihost secures a key component of activating this opportunity, and is expected to enable rapid deployment of newly purchased miners.
Bryan Bullett, Bit Digital CEO
Hut 8 Mining (NASDAQ:HUT)
Another one of the Bitcoin stocks to watch right now is Hut 8 Mining. It has been on our list of penny stocks to watch for a few weeks now, and the latest jump in Bitcoin prices has it on the radar. The company focuses on digital asset mining and is one of the largest in North America. Though there weren’t any headlines from the company directly, sympathy trading has helped give HUT stock a boost in the stock market today.
One thing to also keep in mind is what Hut announced last month that could be an important topic before the end of July. Specifically, the company said it purchased 12,000 new miners that it expects to deploy by the end of the year. Why July could be an important month is based on the company saying delivery is anticipated this month. According to the company, “Given current bitcoin network dynamics, these hash rate installations are expected to increase Hut 8’s current average production from 6.5 – 7.5 Bitcoin per day to 14 – 16 Bitcoin per day based on current economic conditions.”
Other Tech Penny Stocks To Buy [or avoid]
While cryptocurrency is taking center stage on Monday, it isn’t the only niche in tech to watch.
Exela Technologies Inc. (NASDAQ:XELA)
This might be one of the more familiar names if you’ve read our commentary before. Exela Technologies has been on our list of penny stocks to watch for a few weeks. The company provides business automation services using artificial intelligence. Earlier this month, the company expanded its offering of robotic process automation with a new “Intelligent Document Processing” product. Combined with its robotic process automation platform, the solution is directed toward healthcare and other public sectors.
The new offering is built on the premise that the “work from anywhere” trend will continue to evolve. Intelligent Document Processing combined with its existing automation platform can extract data and route it to a cloud or on-site portal. Capabilities include access to data from anywhere, on-demand. Aside from healthcare, Exela has also begun focusing on the finance and legal sectors. With a growing focus on things like Fintech, this could be a well-timed initiative for the company.
Vinco Ventures (NASDAQ:BBIG)
One of the other tech penny stocks to keep an eye on this month was Vinco Ventures. Despite a pullback over the last few weeks, BBIG stock has remained at the top of mind for retail traders. One of the pending “catalysts” that was up in the air until recently was the completion of the company’s acquisition of Lomotif.
This is a marketed competitor of the popular social media video app, TikTok. Last week, the company formally completed this deal through its JV with ZASH Global Media and Entertainment. Further to this, Lomotif and Universal Music Group announced a worldwide agreement on Monday.
This deal allows Lomotif to tap into Universal’s catalog of music for videos. What’s more, Universal is now the first major music company to license Lomotif. With more than 225 million installations and over 300 million videos watched per month, Lomotif has quickly begun to corner a market share in the video-sharing social media arena.
Final Thoughts On Penny Stocks
The recent trend in tech has taken the spotlight at the start of the week. With just days remaining in July, traders continue searching for the next round of top penny stocks to buy. Since there are so many underlying trends inspiring sympathy momentum, it’s important to understand how to trade penny stocks. While dreams of investing for a 10x return are great, volatility is a big part of these cheap stocks. In line with this, managing risk and capitalizing on quick moves in the market is important. So if you’re putting together your watch list, make sure to understand what’s driving momentum and how it can play out in the stock market.