Cheap tech stocks can be a double-edged sword. On the plus side, you don’t have to spend a lot of capital to get into them. And they can reap huge rewards for you.
On the negative side, cheap tech stocks can be highly volatile and risky. You can make a lot of money, but you can also lose a lot of money, and quickly.
The key is betting on the right stocks with a high likelihood of earning a good return over time. This means looking for quality companies that have good future prospects but are currently undervalued by the market. Such stocks are known as value stocks.
Here are a few cheap tech stocks that may be worth watching in the coming days of the market.
Cheap Tech Stocks to Watch Now
1. Snap Inc. (NYSE: SNAP)
It’s been a fantastic three months for cheap tech stock Snap Inc. Since bottoming out in mid-March, the social media stock has climbed to a 52-week high of 20.76.
The stock had made my previous list of social media stocks to watch, and for good reason. This photography-based social platform has 210 million daily active users, and it’s been working hard to increase its ad revenues. And it has been working on improving its user experience.
Now, all of the major social media stocks have been going through a bit of controversy lately. This is because there has been some political pressure to stop promoting President Trump’s tweets.
As a result, Snap is bowing to that political pressure. In such a politically-divided nation as the United States, it’s hard to tell what long-term effect, if any, this political decision will have on the cheap tech stock.
Nevertheless, what really matters is that Snap’s fundamentals remain strong, and it is a worthy social media stock to keep watching in these turbulent times.
2. Inovio Pharmaceuticals (Nasdaq: INO)
Inovio has been steadily climbing despite the market turbulence since the beginning of 2020. But it has really started to rocket since March, doubling its market share price from about $6 to $12.
Part of the excitement around Inovio is centered on upcoming trials for a potential COVID-19 vaccine. The biotechnology company is collaborating with the International Vaccine Institute and Seoul National University for the clinical trials.
Unfortunately, the underlying fundamentals of this cheap tech stock are enough to make investors very nervous. The company has been operating at.a loss and has only generated $1.33 million in revenue in the most recent quarter.
Still, the company is flush with cash, having improved its cash on hand to $158.45 million. And if the COVID-19 vaccine succeeds, it will be a complete game changer for both the company and the world.
So, while this cheap tech stock may not be for everyone, if you’re looking to take a gamble on a coronavirus-related play, this may be one worth a close watch.
3. Uber Technologies Inc. (NYSE: UBER)
People may have been hesitant to do much ride sharing during the coronavirus. But while that may have slowed down the cars, it doesn’t seem to have slowed down the stock.
Like the previous entries on this list, Uber is a cheap tech stock that has fared very well since bottoming out in March. It has climbed from just under $15 to about $37. While this isn’t a 52-week high for the stock, it’s well on its way.
A deal with food delivery service Grubhub has been in the works, but seems to have hit a snag. The bump in the road is related to certain antitrust measures under discussion in working out a deal.
Furthermore, in a post-pandemic world Uber may become a more attractive option. There have been signals from organizations like the CDC that public transportation should be minimized compared with less crowded options for commuting to work.
As the pandemic recedes, Uber should continue to improve its performance. And that means it is a cheap tech stock worth keeping an eye on. Maybe two eyes.