Buy Penny Stocks on August 5? Here’s what you need to know
As another week of penny stocks trading draws to a close, there are a lot of things investors need to know. Already in August we saw a large amount of movement across the board with both penny stocks and blue chips. And although it may seem complicated, there are many ways to enjoy it.
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In 2022, we have to consider all the factors at play and how to use them as an advantage. This means keeping abreast of current events and understanding the impacts it will have on your wallet. With all that in mind, let’s take a look at what you missed in the stock market on August 4th.
Stock market recap, August 4
After a highly volatile trading day, investors saw their portfolios end mostly flat. The reason behind this has to do with the July jobs report which comes out on Friday. During the session, the S&P 500 and the Dow Jones fell about 0.1% and 0.3% respectively.
Additionally, we saw the price of WTI Crude Oil drop below $90 for the first time since February, which is a good sign for consumers. So all of this shows there is potential, but investors should trade with a high level of cautious optimism. Given that, here’s what you need to know about trading penny stocks on August 5th.
What You Need to Know About Buying Penny Stocks on August 5
As stated earlier, the key to making money with penny stocks right now is understanding what is going on in the stock market. And on August 5, the most important factor will be the July employment report. So keep that in mind and make sure you know what the impact will be.
Additionally, we expect volatility to continue in the near future. For this reason, it is crucial to stay one step ahead in order to have the best chance of making money with penny stocks. With that in mind, here are three penny stocks to add to your watchlist right now.
3 Penny Stocks to Watch Right Now
- Evofem Biosciences Inc. (NASDAQ: EVFM)
- American Virtual Cloud Technologies Inc. (NASDAQ: AVCT)
- Athenex Inc. (NASDAQ: ATNX)
Evofem Biosciences Inc. (NASDAQ: EVFM)
One of the biggest movers on August 4 is EVFM stock. During the session, shares of EVFM jumped about 3.2%. And, during the afternoons, we saw a significant increase of over 24%, which is quite substantial. The company’s biggest news came today when it announced its second quarter financial results.
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In the results, it announces 42% growth for its Phexxi product as well as an 8% reduction in operating expenses. These two figures are very positive and indicate strong growth for Evofem Biosciences. Considering all of this, do you think EVFM stock is worth adding to your list of penny stocks to buy or not?
American Virtual Cloud Technologies Inc. (NASDAQ: AVCT)
Another decent winner on August 4 was AVCT. During trading and after hours, AVCT stock managed to rise more than 4%. This is a decent gain for the company and comes after a decline of more than 80% over six months. So, is there any news fueling the movement in AVCT stocks?
The short answer is no, the company didn’t release any news on August 4th. However, we are seeing a significant increase in search volume for the company, including popularity on Reddit, Twitter, and other social media sites. This is often a cause of movement with penny stocks and is likely the reason for AVCT shares gaining in trading today.
Athenex Inc. (NASDAQ: ATNX)
While ATNX stock jumped over 8% during August 4 after-hours trading, ATNX stock jumped over 69% after-hours trading. This is a major win for the company and comes after a recent announcement. Today the Economic Times reported “Intas & Dr. Reddy’s in race with PEs to buy America’s Athenex”.
This is a big deal and caused a flurry of volatility late in the day on August 4th. Often we see news like this having a material impact in a very short period of time. However, it is crucial to consider that this is a short-term move. So if you’re interested in a highly volatile penny stock, ATNX might be worth watching.
What Penny Stocks are you looking at right now?
Finding penny stocks to buy in 2022 is a challenge. One week penny stocks and blue chips are up with major bullish sentiment, and the next week the market is down. These are the characteristics of the stock market that we have seen over the past two years.
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So, to use this as an advantage, investors need to understand exactly what’s going on in the stock market and how to take advantage of it. This means reading the news, viewing press releases, and considering the impact of macro and microeconomic events on your penny stocks watchlist. With that in mind, what penny stocks are you looking at right now?