The COVID-19 coronavirus has brought volatility back to stocks. While it might not seem like it, that's a very good thing for penny stocks.
Believe it or not, that's not the only penny stock making moves today.
The most obvious place to look for penny stocks right now is pharmaceuticals. It would make sense to focus on companies developing coronavirus vaccines.
But there are even better ways to use penny stocks to profit from the pandemic-induced volatility.
If you missed the 139% pop from Inovio, the best penny stock today can still double your money. And the most surprising thing is it's not a pharmaceutical company.
Coronavirus fears have tanked the stock market up to 3,000 points in the last month. While all that was happening, our top penny stock gained 53%.
You see, penny stocks trade under $5 a share. That allows them to make big swings in a volatile market. The Volatility Index (VIX) more than doubled in February, from 16.05 to 33.42. And that sent our penny stock today up 53%.
But why did it rise and not fall? It's tied to one of the most coronavirus-proof trends today: artificial intelligence.
Volatility is going to remain high over the next few months. But you can use that to your advantage with this penny stock.
We're going to show you that stock in a moment. But first, here's why certain artificial intelligence stocks could be a coronavirus safe haven.
Why This Is the Best Penny Stock Today
AI is not just on its way to being a huge market. It's alive and well right now, and it's being used to respond to COVID-19.
In fact, the Centers for Disease Control and the World Health Organization have adopted analytics and big data to track the virus around the world.
Predictive analytics can use huge amounts of voice and text data to give researchers a snapshot of areas affected by the virus. AI can package this data in a way that informs authorities in their decisions.
One example is the Johns Hopkins world map of COVID-19's spread. Geographic information systems like this are being developed to mine data from social media and forums where COVID-19 is most talked about. This can help authorities get a grasp of how different areas have been affected by the response.
Even more shocking, BlueDot, a private Canadian AI firm, actually predicted the coronavirus outbreak weeks before Centers for Disease Control by using animal disease and airline data.
Right now, the CDC is limited to public health records. But this is just one of an infinite number of things AI can do to improve conditions under circumstances like the spread of COVID-19.
For this to happen, AI needs to be more widely adopted by government agencies.
The good news is that it's getting there. And that's why this penny stock is on its way to a 107% gain...
The Best Penny Stock to Buy Right Now
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Veritone Inc. (NASDAQ: VERI) is a cloud-based artificial intelligence media technology company.
It's responsible for developing the first operating system for artificial intelligence in the world.
With its operating system, called aiWARE, Veritone has supported the media sector as well as law enforcement and intelligence agencies in creating useful information from a sea of data.
In September 2019, it signed a deal with Microsoft Azure Government that would give both state and federal agencies access to aiWARE.
Azure is a huge platform. So it's a huge step for both the company and AI in general. Veritone's AI-powered applications are being made available on the cloud as we speak.
So far, there has been no news of Veritone assisting the CDC or any other organization to capture COVID-19 data. But as it becomes integrated with Microsoft Azure, this will be made possible, and responses to scenarios like this will be more robust.
Veritone has grown its revenue quickly in the last couple years. Since the end of 2018, sales have gone from $27 million to $48 million, a total of 78%.
But that's only going to soar higher. This company was only founded in 2014 - it's making deals and spreading fast.
On March 2 (Monday), it signed a deal with Canada's largest media company, Bell Media. Veritone will assist the company with content and ad intelligence solutions. The stock has popped 20% since then.
The average analyst gives Veritone a target of $7.20 for the year. But you can get it today for $3.47. That's a potential 107% return.
Action to Take: Artificial intelligence can be used to fight the spread of diseases like COVID-19. But governments have been slow to adopt... until now. Veritone Inc. (NASDAQ: VERI) recently signed a deal that will lead to further government AI adoption. And the need for AI solutions will only get greater over time. That's why this one has a 107% growth target.
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About the Author
Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.