Buying Penny Stocks Today? Here’s What You Need to Know
With blue chips and penny stocks set to have another wild day of trading, there is a lot for investors to understand about the stock market right now. While the Dow Jones futures are trading higher right now, we continue to see a high rate of uncertainty and volatility around.
As we all know, there is a lot going on in the stock market that continued to impede growth and cause the major uncertainty we’re seeing. For that reason, staying up to date with what is going on in the stock market is crucial to making gains. With that in mind, let’s take a look at what you need to know about trading penny stocks today.
What to Know About Trading Penny Stocks Today
Early on Thursday, we saw some major tech stocks such as Apple Inc. (NASDAQ: AAPL) and Microsoft Corp. (NASDAQ: MSFT) climb slightly to start the day. While the selloff that has occurred this week could continue, we are also seeing some signs pointing to a bullish day for stocks. A lot of the movement right now comes as Fed. Chair Jerome Powell gave his remarks on the Fed’s monetary policy moving forward.
Powell stated that inflation could continue to rise, however, the body will do what it can to avoid poor outcomes. Now, while we all know that inflation is high right now, we are also seeing positive signs surrounding the future. So, with these mixed feelings in the stock market, let’s take a look at three penny stocks that climbed during premarket trading today.
3 Penny Stocks Climbing During Premarket Right Now
Farmmi Inc. (NASDAQ: FAMI)
One of the largest early morning gainers today is FAMI stock. By market open, shares of FAMI had shot up by over 16%. While we’ve seen Farmmi stock shoot up substantially with no news, today, the company made an exciting announcement. During premarket, Farmmi reported its financial results for the twelve months ended on September 30th, 2021.
In the report, it posted a 39% increase in revenue alongside a 10% expansion in its gross profit over the same period of 2020. While these are very encouraging, the big news is its 188% increase in net income for the year. These results are very positive for the company and reflect a hopeful outlook moving forward. Considering this, will FAMI be on your penny stocks watchlist?
DouYu International Holdings Ltd. (NASDAQ: DOYU)
Another highly active early morning mover is DOYU stock. Now, there are a few reasons why shares of DOYU stock are moving right now, however, the main reason deals with Tencent Holdings Inc. During premarket, Tencent announced that it may be taking DouYu International private during 2022.
The goal is to end disagreements over strategy as Tencent has a 37% stake in the Chinese video game company. Additionally, DouYu is the No. 2 video game streaming site in China, which gives it a major position in the market. With all of that in mind, will DOYU be on your list of penny stocks to watch?
Aridis Pharmaceuticals Inc. (NASDAQ: ARDS)
As far as large premarket gainers go, shares of ARDS stock managed to open with a 21% uptick. If this seems like a lot, in the past five days, shares of ARDS stock have climbed by over 62%, which is quite substantial. The big news here comes as the company announced it had received funding to evaluate an inhalable monoclonal antibody treatment.
This treatment would be to prevent the transmission of Covid-19 and potentially other airborne viruses. The grant from the Bill & Melinda Gates Foundation, gave the company $1.9 million to work further on this drug and potentially get it into the hands of low-income countries. This is big news, and helps to illustrate why investors are interested in the company right now.
Are Penny Stocks Worth Buying?
The short answer to this question is that it is up to the individual investor. While some traders are more inclined to invest in riskier stocks, others choose to take a more conservative approach.
And with the stock market as volatile as it is now, it makes sense that we may continue to see large and frequent movements. So, always have a well-thought-out trading strategy and use that to your advantage. With that in mind, do you think that penny stocks are worth buying right now or not?
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