As the economy grapples with the coronavirus pandemic that has reeked across markets, investors should start considering tech penny stocks, which often offer rewarding opportunities. There is significant volatility in the market currently, and some investors are seeing this as a great opportunity, while others feel that the market is likely to go even lower. There certainly have been wild swings in the market in the past month, and with the volatility crunch, there is an opportunity for investors to generate wealth from tech penny stocks—but of course, things could just as easily swing the other way.
Penny stocks trade below $5 a share, and although they are cheap, they are nonetheless very risky. Penny stocks are susceptible to market volatility regardless of the circumstances, but because of the high-risk-reward return, they can be great profit-making investment options for day traders.
For investors seeking to take advantage of the current market volatility and earn some profit, these 4 tech penny stocks present a massive opportunity.
4 Top Tech Penny Stocks Gain Over 70% in a Month: Casa Systems Inc. (NASDAQ:CASA)
Casa Systems stock has gained over 75% in the past month and has performed well year-to-date, gaining 8.6% relative to the S&P 500’s average gain of 4.8%. Recently, the company announced Q4 earnings per share of $0.15, topping consensus estimates of $0.02 per share. This is an earnings surprise of 650%. In Q3, projections indicated that the company would post EPS of $0.11, but in actuality, it produced a $0.03 loss per share.
The company’s revenue was $112.89 million, topping estimates by around 3.79%. This compares to revenue of $67.83 million posted in the same quarter a year ago. In the last four quarters, Casa Systems has topped revenue estimates on two occasions. For the coming quarter, analysts are expecting a loss of $0.09 per share on revenue of $80.20 million.
CASA stock is now up by 9% at $4.03.
4 Top Tech Penny Stocks Gain Over 70% in a Month: Veritone Inc. (NASDAQ:VERI)
Since mid-March, Veritone stock has surged 120%. The company has announced that it has secured loans of $6.5 million from Sunwest Bank, together with Veritone One Inc., Veritone’s subsidiary. The loans are under the Paycheck Protection Program within the COVID-19 Aid, Relief and Economic Security Act (CARES). The loan will help the company go on with operations without having to layoff, furlough, or reduce salaries of employees during the COVID-19 crisis.
Recently, the company released better than expected Q4 and FY2019 results. The company CEO, Chad Steelberg, indicated the strength in advertising and aiWARE helped it offset seasonal softness in licensing of content. The company reported net revenue of $12.4 million in Q4 and $496 million for the full year.
>> 5 Hot Penny Stock Gainers Up Over 30%
At the time of writing, VERI stock is up by 1% to $2.79.
4 Top Tech Penny Stocks Gain Over 70% in a Month: Ceragon Networks Ltd (NASDAQ:CRNT)
In the past, Ceragon Networks stock has jumped 70%. Recently, the company warned that its Q1 revenue will be hit by network rollout and shipment delays as the world continues to grapple with COVID-19. The company has also indicated that it expects Q2 deliveries to be impacted because of restrictions in movement imposed to combat the spread of coronavirus. Ceragon is now expecting revenue to be between $55.5 million and $57 million, missing on consensus estimates of $64 million.
Interestingly, the company expects demand for its products to be strong throughout 2020, judging from what they saw in Q1. The company’s wireless shipping solutions are vital in the transition to the 5G network.
CRNT stock went up 5% to $2.10 in the early session on Friday.
4 Top Tech Penny Stocks Gain Over 70% in a Month: Pixelworks Inc. (NASDAQ:PXLW)
Pixelworks has surged 70% in the past month. The company recently announced its preliminary Q1 2020 results in which it said it expected revenue of around $13.8 million, which is almost its mid-point guidance range of between $13.0 million and $15.0 million. The company implemented cost reduction measures in the quarter because of COVID-19 and now expects operating expenses to be below the $10.5 million to $11.5 million range.
Similarly, the company announced an extension of its partnership with TCL Communications for advancing the performance and display capabilities of its smartphones. The companies have successfully developed TCL 10L, 10 5G, and 10 Pro under the partnership.
PXLW stock is now down by 1% to $4.07.
Bottom Line
These 4 tech penny stocks present massive investment opportunities, considering they have been on an upward trend this past month. But since penny stocks are susceptible to volatility, investors should be wary of the risks associated.
Featured image: Pixabay
