Penny stocks in the technology sector will always offer some of the most exciting new business. The appeal of a company that can potentially become the next Apple or Microsoft is palpable.
Names in this sector may prove fruitful for investors. Let’s check out Socket Mobile (NASDAQ:SCKT).
Tech Penny Stocks: Socket Mobile
Socket Mobile is a producer of data capture products. Data capture tools, essentially, collate external data through analyzing images, sounds, or video.
As such, Socket Mobile’s products are “integrated into mobile applications used in mobile point of sale mPOS, enterprise mobility, asset tracking, and control systems.”
Selling for $2.00 USD at present, SCKT stock is currently more than half the price of this penny stock’s all-time high of $4.83. It reached those heights as far back as March 2017.
Penny Stock vs. Stiff Competition
Analysts currently don’t look too favorably on the SCKT penny stock. The reason is that the company is being beaten by stiff competition. It faces off against major technology companies such as NICE (NASDAQ:NICE), which pulled in revenue figures of $1.33 billion USD in 2018. Also, smaller-capped Huami (NYSE:HMI) is showing prowess with revenue of $253 million. Huami even went as far as exceeding its guidance range by 27.9%.
By comparison, Socket Mobile is pulling in revenue of $21.29 million USD. Yes, the company is much smaller with a market cap of only $11.74 million, but unless it can find room to grow in the tough technology sector, investors will face a rocky road ahead.
Data is big business so you’d be forgiven for seeing the potential in buying a low-priced stock in a sector worth big bucks. And as ITPro puts it:
So surely Socket Mobile is at the fore of the analytical infrastructure necessary to bring big bucks from it. But can it grow to become as big as the competition it faces? That’s the question for investors. Is it a penny stock worth looking into?
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