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Best Penny Stocks to Buy Right Now According to Reddit

Are These Penny Stocks on Reddit Worth Buying?

Reddit penny stocks can be a great option for those looking for short-term volatility in the market. Rising to fame in the past year, investors on Reddit have come together to find penny stocks that could have potential. And there are a few pros and cons when it comes to using this strategy. But before we get into that, let’s talk about what Reddit penny stocks are. If you’re unfamiliar, Reddit is a social media platform that allows for communities to come together on various ‘Subreddits’. 

And, it just so happens that there are hundreds of these communities based on trading stocks and trading penny stocks. Small-caps that are frequently mentioned across Reddit, often get the apt title of being a ‘Reddit penny stock’. Thus, the term was born, and with it comes the potential to both make significant gains and lose large amounts of capital. 

What to Know About Trading Reddit Penny Stocks

To further understand this, let’s take a close look at some of the risks and reward with penny stocks on Reddit. First and foremost, investors need to be comfortable with large intraday fluctuations. This comes with the territory and is something that investors should learn to use to their advantage. 

When groups of investors come together and pick a few stocks to invest in, often this results in large intraday spikes. This was the case with both GME stock and AMC stock. Within the span of only a few days, both of these stocks managed to jump in the triple-digit percentage points. This was the result of high speculation and the influence of Reddit. 

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While the risks of investing in penny stocks on Reddit are clear, if you can find the trending stocks before they pop, it could be a profitable endeavor. Considering all of this, let’s take a look at three penny stocks that are popular on Reddit right now.

3 Reddit Penny Stocks to Watch Right Now 
  1. SOS Ltd. (NYSE: SOS
  2. Kaixin Auto Holdings (NASDAQ: KXIN
  3. TD Holdings Inc. (NASDAQ: GLG
SOS Ltd. (NYSE: SOS

Up by around 3% at midday are shares of SOS stock. YTD, shares have climbed by a very solid 80% or so, bringing it to an August 18th price of roughly $2.57 per share. SOS Ltd. has climbed to popularity in the past year due to its business model and its shifts in that time frame. 

Over the past few years, SOS has transitioned into several different operations. While it began as a producer of emergency-rescue products, it has entered into the blockchain and Bitcoin market in a big way. Now, the company provides marketing and solutions based on both big data and blockchain for its over 20 million members. 

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The company engages in everything from crypto mining to security and infrastructure. And more recently, it has also entered into 5G, cloud computing, AI, satellite, and more. Only a few weeks ago, the company entered into a joint venture agreement with Niagara Development to begin mining cryptocurrency in the U.S. This was a big move and outlines SOS’s strategy to avoid the Chinese-crypto crackdown. 

“SOS Continues to increase its development of comprehensive blockchain solutions for digital trade, digital finance, and other industries. We decided to acquire a sustainable power supply as far as possible, as we expand our blockchain operations into North America.” 

The Chairman of SOS, Yandai Wang

Both the renewable nature of this venture and the hype around crypto right now seem to be fueling SOS stock’s recent bullish momentum. However, whether it is worth adding to your watchlist is up to you. 

Penny_Stocks_to_Watch_SOS Ltd. (SOS Stock Chart)Kaixin Auto Holdings (NASDAQ: KXIN

One of the bigger gainers of the day so far comes in as KXIN stock, pushing up by over 12% at midday. Shares of KXIN stock have enjoyed a five-day rally of over 23% bringing its monthly gains in at over 71%. Similar to SOS, Kaixin is involved in several industries, however, they are all centered around automobiles. In China, Kaixin operates as one of the leaders in both new and used car sales. 

Because the Chinese auto market has been booming in the past year, Kaixin has enjoyed above-average sales. In addition to offering vehicles, Kaixin also provides tech-enabled financing for cars as well as online and offline services in the industry.

And only recently, the company announced its move into the EV market with a new energy vehicle unit. The company plans to launch several smaller and mini compact EVs, and could quickly begin several mergers and acquisitions to do just that. 

By 2025, estimates show that the compact EV market in China could sell roughly 5 million vehicles. And if we look at the data for car sales right now, we see that this could be entirely possible. While developing a car from scratch is no small feat, Kaixin’s plans to involve other companies could help to expedite this process.

Although it isn’t necessarily a pure-play EV penny stock, the company is making swift moves into the industry. Considering this, KXIN stock could be an interesting addition to your list of penny stocks to watch. 

Penny_Stocks_to_Watch_KaixinTD Holdings Inc. (NASDAQ: GLG

If you haven’t heard of GLG stock, you’re probably not alone. However, shares of GLG have climbed by around 11% in the past five days, bringing in investor attention once again. Today’s almost 13% gain is indicative of the companies Q2 2021 financial results reported yesterday during after hours. But before we get into them, let’s talk about what TD Holdings does. 

TD Holdings is a company that engages in commodity trading and supply chain-related services in China. It primarily invests in metal products from upstream and downstream producers which includes nonferrous metals. On the other hand, its supply chain management business offers a large number of potentially valuable services such as digital intelligence platforms, warehousing, logistics, information, and more. 

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In its financial results, the company stated that its revenue increased by almost 3000% over the same quarter of the previous year. And no, that is not a typo. The company managed to bring in roughly $59 million in revenue during the second quarter, bringing its six-month revenue total to almost $90 million. 

“We are pleased to report our financial results for the second quarter of fiscal year 2021. Despite the setbacks caused by the Covid-19 outbreak and having just started our commodities trading business in late 2019, our revenue increased by 2981% to $59.84 million for the second quarter of fiscal year 2021 as compared to the second quarter of fiscal year 2020.” 

Ms. Renmei Ouyang, CEO of TD Holdings

These big numbers show that TD Holdings is working hard to grow in the face of adversity. And while major growth is always a great sign, investors should continue to dig deeper to see if GLG stock is worth buying. 

Penny_Stocks_to_Watch_TD Holdings Inc. (GLG Stock Chart)Are Reddit Penny Stocks Worth it or Not?

Finding penny stocks on Reddit can be a valuable trading strategy if implemented correctly. However, it is easy to get lost in the hype, which could result in sizable losses.

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But, if you stay up to date, and understand exactly what is affecting the market, making money with penny stocks in 2021 can be accomplished. Considering this, do you think that Reddit penny stocks are worth it or not?

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