In this article, we discuss the 10 tech penny stocks Reddit is buying.
Technology stocks have reached evaluations that many analysts now term sky-high and in dire need of correction. Of the top ten companies on the S&P 500 Index in terms of market capitalization, seven are technology firms, like Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), and Facebook, Inc. (NASDAQ: FB). These account for more than 23% of the total index by weightage. David Bahnsen, the chief investment officer of The Bahnsen Group, an investment firm based in California, said earlier this year that tech stocks were poised for a reprice after meteoric gains during the pandemic that pushed valuations too high.
Amid fears of inflation and a drop in the prices of cryptocurrencies because of regulatory concerns, investors who have poured money into the tech sector or those hoping for an inroad into the highest growth sector of the market are nervous about betting on overvalued firms. For these, investments in heavily traded tech penny stocks might be the solution. According to CNBC business news correspondent Bob Pisani, the average trading volumes at the NASDAQ have more than doubled from 7 billion in 2019 to over 14 billion at the beginning of this year.
This statistic highlights the influence of retail investors on the market and the rise of penny stocks they seem to favor, most of which are in the tech sector since it offers explosive growth potential compared to the other industries. Some of the technology penny stocks presently popular on Reddit include eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA). These and others like them are discussed in detail below.
These retail investors and their trading habits have taken the finance world by storm in the past few years. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29th 2021 our monthly newsletter’s stock picks returned 206.8%, vs. 91.0% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Photo by Dimitris Chapsoulas on Unsplash
With this context in mind, here is our list of the 10 tech penny stocks Reddit is buying. These were ranked keeping in mind the number of mentions on Reddit, analyst ratings, hedge fund sentiment, and basic business fundamentals.
Tech Penny Stocks Reddit is Buying
10. Creative Realities, Inc. (NASDAQ: CREX)
Number of Hedge Fund Holders: N/A
Price as of August 5, 2021: $1.78
Creative Realities, Inc. (NASDAQ: CREX) is placed tenth on our list of 10 tech penny stocks Reddit is buying. The firm is headquartered in Kentucky and provides digital marketing technology solutions. The company has a market cap of $19 million and posted more than $17 million in revenue last year. Some of the services it offers include digital merchandising, customer engagement, and interactive marketing technologies. It markets these services to a whole range of retail and manufacturing businesses.
In March this year, Creative Realities, Inc. (NASDAQ: CREX) announced that it had been engaged to provide digital signage solutions to a convenience store chain in the United States and Canada that operates more than 14,000 stores across the two countries.
In earnings results for the first quarter, posted on May 17, Creative Realities, Inc. (NASDAQ: CREX) reported a net income of $1.3 million and a revenue of $5 million, up 35% year-on-year. The share price of the firm soared by 9% following the earnings report.
Just like Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA), Creative Realities, Inc. (NASDAQ: CREX) is one of the tech stocks Reddit is buying.
9. Vinco Ventures, Inc. (NASDAQ: BBIG)
Number of Hedge Fund Holders: N/A
Price as of August 5, 2021: $2.94
Vinco Ventures, Inc. (NASDAQ: BBIG) is ranked ninth on our list of 10 tech penny stocks Reddit is buying. The firm operates from Pennsylvania and markets consumer product research and development services. It was founded in 2017. The firm has a market cap of over $184 million and posted more than $15.7 million in revenue last year. It has operations in Europe and the Asia Pacific in addition to the United States and Canada. The firm markets various products to retailers and distributors through ecommerce channels.
In earnings results for the first quarter, posted on May 25, Vinco Ventures, Inc. (NASDAQ: BBIG) reported a revenue of more than $2.5 million, up close to 32% compared to the revenue over the same period last year.
In the past few weeks, the share price of Vinco Ventures, Inc. (NASDAQ: BBIG) has been soaring amid interest on internet platforms like Reddit. On June 11, the stock jumped 11%, doubling in value over a period of weeks on a momentum run.
Alongside Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA), Vinco Ventures, Inc. (NASDAQ: BBIG) is one of the tech stocks Reddit is buying.
8. AmpliTech Group, Inc. (NASDAQ: AMPG)
Number of Hedge Fund Holders: 2
Price as of August 5, 2021: $3.95
AmpliTech Group, Inc. (NASDAQ: AMPG) is a New York-based firm that makes and sells microwave component-based amplifiers. It is placed eighth on our list of 10 tech penny stocks Reddit is buying. On July 29, the firm announced that it had won a follow-up $0.5 million order for Low Noise Amplifiers marketed by the firm that are being used by a high-speed broadband provider. The company will begin shipping the product to the broadband firm this year. The amplifiers are used in satellite ground stations.
On July 28, investment advisory Maxim initiated coverage of AmpliTech Group, Inc. (NASDAQ: AMPG) stock with a Buy rating and a price target of $10, noting the stock offered opportunity across multiple secular growth markets.
At the end of the first quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $1.5 million in AmpliTech Group, Inc. (NASDAQ: AMPG).
In addition to Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA), AmpliTech Group, Inc. (NASDAQ: AMPG) is one of the tech stocks Reddit is buying.
7. Super League Gaming, Inc. (NASDAQ: SLGG)
Number of Hedge Fund Holders: 2
Price as of August 5, 2021: $4.06
Super League Gaming, Inc. (NASDAQ: SLGG) is a California-based firm that owns and runs a video gaming and esports platform. It is ranked seventh on our list of 10 tech penny stocks Reddit is buying. The firm recently joined the Russell Microcap Index. It has a market cap of close to $150 million and posted more than $2 million in revenue last year. The firm was founded in 2014 and employs around 47 people. The company is famous for Minehut, a social gaming portal frequented by Minecraft players.
On May 27, investment advisory HC Wainwright initiated coverage of Super League Gaming, Inc. (NASDAQ: SLGG) stock with a Buy rating and a price target of $6, underlining that the firm was an emerging player in the fast growing esports sector.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Super League Gaming, Inc. (NASDAQ: SLGG) with 63,238 shares worth more than $445,000.
Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA) are some of the tech stocks Reddit is buying, just like Super League Gaming, Inc. (NASDAQ: SLGG).
6. Boxlight Corporation (NASDAQ: BOXL)
Number of Hedge Fund Holders: 3
Price as of August 5, 2021: $1.96
Boxlight Corporation (NASDAQ: BOXL) is placed sixth on our list of 10 tech penny stocks Reddit is buying. The firm operates from Georgia and is in the education technology business. It sells interactive classroom solutions. In the wake of the pandemic crisis, the business of the firm has really taken off. It beat market expectations on revenue for the first quarter and has also joined the Russell Microcap Index. In April, the New York State Office of General Service announced that it would be extending a two-year equipment deal with Boxlight.
On July 1, investment advisory Alliance Global raised the price target on Boxlight Corporation (NASDAQ: BOXL) stock to $6 from $5.5 and maintained a Buy rating, highlighting that the firm was benefiting from a federal stimulus and better-than-expected demand.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Boxlight Corporation (NASDAQ: BOXL) with 121,107 shares worth more than $306,000.
Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), eMagin Corporation (NYSE: EMAN), Ceragon Networks Ltd. (NASDAQ: CRNT), and Exela Technologies, Inc. (NASDAQ: XELA) are some of the tech stocks Reddit is buying, alongside Boxlight Corporation (NASDAQ: BOXL).
5. Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV)
Number of Hedge Fund Holders: 6
Price as of August 5, 2021: $2.88
Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV) is ranked fifth on our list of 10 tech penny stocks Reddit is buying. The company owns and runs resorts and entertainment centres. In recent months, the focus of the company has shifted to online products. In July, the company announced two partnerships related to digital undertakings, one in the esports sector and one for the development of a destination-themed travel application. The firm missed market expectations on earnings for the first quarter.
In March this year, investment advisory Maxim maintained a Buy rating on Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV) stock and raised the price target to $28 from $10, noting that the firm was shifting to a new content ownership model that should boost valuation.
At the end of the first quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $12.7 million in Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV), down from 7 the preceding quarter worth $528,000.
4. Ebang International Holdings Inc. (NASDAQ: EBON)
Number of Hedge Fund Holders: 8
Price as of August 5, 2021: $2.34
Ebang International Holdings Inc. (NASDAQ: EBON) is a China-based company that makes and sells application-specific integrated circuit chips. It is placed fourth on our list of 10 tech penny stocks Reddit is buying. The firm also has stakes in the business for the manufacture and selling of Bitcoin mining machines. It also engages in the development and sale of fibre optic telecommunication products. The company was founded in 2010 and has a market cap of $412 million. It employs more than 200 people.
On April 5, Ebang International Holdings Inc. (NASDAQ: EBON) launched EBONEX, a cryptocurrency exchange platform. The share price of the firm jumped more than 10% after the launch of the crypto exchange.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Ebang International Holdings Inc. (NASDAQ: EBON) with 722,623 shares worth more than $5.7 million.
3. Exela Technologies, Inc. (NASDAQ: XELA)
Number of Hedge Fund Holders: 8
Price as of August 5, 2021: $3.07
Exela Technologies, Inc. (NASDAQ: XELA) is a Texas-based firm that provides transaction processing solutions and other digital business services. It is ranked third on our list of 10 tech penny stocks Reddit is buying. Some of the services the markets include information processing, healthcare solutions, and document management. It has a global presence and employs more than 18,000 people. The firm has a market cap of over $190 million and posted more than $1.2 billion in revenue last year.
On June 2, investment advisory Cantor Fitzgerald initiated coverage of Exela Technologies, Inc. (NASDAQ: XELA) stock with an Overweight rating and a price target of $4, with the advisory drawing the attention of investors to the improving fundamentals of the firm.
At the end of the first quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth $10 million in Exela Technologies, Inc. (NASDAQ: XELA), up from 4 in the previous quarter worth $7 million.
2. Ceragon Networks Ltd. (NASDAQ: CRNT)
Number of Hedge Fund Holders: 8
Price as of August 5, 2021: $3.98
Ceragon Networks Ltd. (NASDAQ: CRNT) is placed second on our list of 10 tech penny stocks Reddit is buying. The company is headquartered in Israel and markets wireless backhaul solutions. In earnings results for the second quarter, posted on August 2, the firm reported earnings per share of -$0.01, beating market estimates by $0.03. The revenue over the period was close to $69 million, up 10% compared to the revenue over the same period last year and beating market estimates by $3.4 million.
On May 4, investment advisory Needham upgraded Ceragon Networks Ltd. (NASDAQ: CRNT) stock to Buy from Hold with a price target of $4.5, appreciating the solid quarterly earnings that beat market expectations and improved guidance.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Ceragon Networks Ltd. (NASDAQ: CRNT) with 2 million shares worth more than $7.5 million.
1. eMagin Corporation (NYSE: EMAN)
Number of Hedge Fund Holders: 9
Price as of August 5, 2021: $2.86
eMagin Corporation (NYSE: EMAN) is ranked first on our list of 10 tech penny stocks Reddit is buying. The company operates from New York and engages in the development and selling of organic light-emitting diode displays and other virtual imaging products. It was founded in 1996 and has a market cap of close to $200 million. In earnings results for the first quarter, posted on May 13, the firm reported a revenue of $6.7 million, up 0.6% compared to the revenue over the same period last year and beating market estimates by $0.27 million.
In March, investment advisory HC Wainwright reiterated a Buy rating on eMagin Corporation (NYSE: EMAN) stock and raised the price target to $5 from $2, noting that the firm was well positioned for growth this year on the back of improving virtual reality prospects.
At the end of the first quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $5.9 million in eMagin Corporation (NYSE: EMAN), up from 5 in the preceding quarter worth $786,000.
You can also take a peek at 10 Stocks Reddit is Piling Into Before Earnings and 10 Best One Dollar Stocks to Buy Now.
Follow Insider Monkey on Twitter
Suggested Articles:
- 10 Best Cash App Stocks to Invest In
- 10 Best Coffee Stocks to Invest In
- 10 Best Hair Care Stocks to Buy Now
Disclosure. None. 10 Tech Penny Stocks Reddit is Buying is originally published on Insider Monkey.
