Penny Stocks That Went Big and Became Household Names

You've probably heard the phrase "penny stocks" before, but you might not know what it actually means. A penny stock is a type of stock that's traded for a low price, typically under $1.

These stocks are often overlooked by big investors, but that doesn't mean they can't be valuable. In fact, some penny stocks have gone on to become household names.

Take Amazon, for example. It started out as a penny stock, trading for just 18 cents per share in 1997. Today, it's one of the world's largest companies, with a market value of over $1 trillion. That's a pretty impressive turnaround.

It's not just Amazon, either - there are many other penny stocks that have gone big.

Penny stocks can be a wild ride, but some of them have managed to make it big. Take Plug Power, for example, which has been a penny stock for over a decade but started trading at $15 per share in 1999 and grew to $150 per share by March 2000.

Some famous penny stocks that aren't necessarily pennies anymore include Pier One, Ford, and Sirius XM, which all started as pennies and are now potentially great trades. However, they're not always moving like crazy, so keep that in mind.

In recent years, there haven't been many penny stock companies that went big, but it does happen. For instance, Antero Resources, which traded at $0.81 in 2020, is now worth $2.2 billion, with a 800% increase in value. Marathon Patent, which traded at $0.45 in 2020, is now worth $1.8 billion, with a 4,876% increase in value.

Here are some successful penny stocks that made it big:

These companies are proof that with the right combination of innovation, hard work, and a bit of luck, even the smallest of stocks can make it big.

Penny stocks have a reputation for being high-risk, but the truth is, some of them can be incredibly profitable. They can earn you 15-30% profits on a single trade.

The key is to approach them with discipline and a good trading plan, rather than hoping to strike it big like buying a lottery ticket.

Some people are starting to take notice of penny stocks, with trading in stocks under a dollar accounting for a fifth of U.S. volume earlier this week.

In fact, stocks trading for less than a dollar a share are up an average of 45% this year, which is much higher than the S&P 500's 1.1% year-to-date gain.

This suggests that there's a growing interest in penny stocks, and some of them are indeed succeeding.

As you consider investing in penny stocks, remember that some big winners started life as tiny companies with limited resources.

Be cautious of companies with no revenue or thin profit margins, as seen in the case of Tesla, which had a net loss of $131.3 million in 2008.

Make sure to research the company's financials and growth potential before investing.

Beware of the hype surrounding penny stocks, as they are highly speculative and often lead to significant losses. None of the seven billion-dollar babies is listed on a major index like the S&P 500 yet, which should raise a red flag.

All six of these stocks lost money the past 12 months on an adjusted earnings-per-share basis, a clear indication of their lack of stability. A few of these companies, like Riot, posted less than $10 million in revenue the last 12 months, which is a tiny fraction of what most established companies bring in.

Riot's valuation is now nearly $2 billion, larger than 14 stocks in the S&P Mid Cap 400 Index, yet it still trades at a relatively low price of $25.78 a share. Similarly, Marathon Patent's valuation is also nearly $2 billion, with shares trading for 22.39 a share now.

It's telling to see so many people turning pennies into billions, but the pros know how this movie usually ends – with significant losses.

The energy sector has been quite a rollercoaster ride in recent years. Companies in this sector that didn't fail have found investors willing to step up and buy.

The S&P 500 energy sector has been the best performing sector of 2021 so far, by a significant margin. Antero Resources, a Denver-based oil and natural gas company, is a great example of this trend.

Antero Resources is now worth $2.2 billion, or $7.26 a share, which is up a staggering 800% from its value in March 2020. Analysts expect the company to lose $100 million, or 37 cents a share, in 2020, but make 15 cents a share in 2021.

Take a look at this: Energy Stocks

If you're looking to get in on the next big penny stock, here are some tools and resources that can help.

Investing in penny stocks requires a lot of research, so it's essential to have the right tools at your disposal. You can start by checking out websites like OTC Markets or Yahoo Finance, which provide real-time stock quotes and news.

The OTC Markets website is particularly useful for finding penny stocks that are actively traded. It's also a great resource for learning about the different types of penny stocks, such as those listed on the OTC Bulletin Board or the Pink Sheets.

Another valuable resource is the Securities and Exchange Commission (SEC) website, which provides information on penny stocks and the rules that govern them. Be sure to check out the SEC's list of penny stock boiler rooms, which can help you avoid potential scams.

Penny stock research platforms like StockTwits and Investopedia can also be helpful in finding and analyzing penny stocks. These platforms provide a wealth of information on stock performance, news, and analyst opinions.

Investing in penny stocks can be a high-risk, high-reward game, so it's essential to stay informed and up-to-date on the latest developments. By using these tools and resources, you can make more informed investment decisions and potentially find the next big penny stock winner.

See what others are reading: Otc Penny Stocks

Reports are crucial documents that provide detailed financial statements and analyses of a company, often significantly influencing the growth of penny stocks.

Notices like press releases or regulatory disclosures can also impact stock growth, such as a company receiving a notice about an upcoming partnership.

Most active traders lose money due to fees and overtrading, according to available research on day trading.

These studies show a wide variance of data on day trading profitability, but one thing is clear: most day traders lose money.

Curious to learn more? Check out: Do Penny Stocks Make Money

Research is a crucial aspect of understanding the market, and it's essential to know how it affects your trading decisions. Reports can significantly influence the growth of penny stocks by revealing positive or negative performance metrics.

Reports are crucial documents that often provide detailed financial statements and analyses of a company. They can significantly influence the growth of penny stocks by revealing positive or negative performance metrics.

Notices, on the other hand, are usually shorter pieces of information like press releases or regulatory disclosures that can also impact stock growth. For example, if a company receives a notice about an upcoming partnership, this could positively affect its growth prospects.

Most active traders lose money due to fees and overtrading. This is a clear indication that research is essential to make informed trading decisions.

Studying the history of stocks can help you identify patterns and make better predictions about their future performance. Think of stocks like athletes — they won’t deliver the same performance every time, but they have their own styles and a track record you can learn from.

Monitoring your watchlist regularly and studying the patterns of past runners can help you spot the stocks that might make big runs in the future.

New investors are gravitating to cheap stocks and penny stocks, which are starting to make a big-time influence on markets.

Trading in small-priced stocks has spiked to a fifth of U.S. volume, according to Themis Trading data cited by Bloomberg News.

Some stocks trading for less than a dollar are up an average of 45% so far this year, outperforming the S&P 500's 1.1% year-to-date gain.

Stocks trading for $100 or more are only up 4.8% on average this year, a significant difference from the high-performing penny stocks.

Penny stocks can be a blessing or a curse, and it's all in how you trade them.

A lot of penny stocks are shady, with risk heightened due to limited company information and unsavory promotion.

There's a possibility for big gains, and I trade penny stocks because you can trade conservatively and still rack up gains.

These companies are often young, with some penny stocks being newer companies that can dramatically shift their market trajectory and valuation.

Here are some key characteristics of penny stocks that can help you make informed decisions:

To succeed in penny stock trading, it's essential to learn why a stock was picked and choose your own stocks to watch, rather than blindly copying someone else's picks.