It's normal to feel skittish about buying stocks right now. These are scary times.
But you should also know it's the buying opportunity of a lifetime for stocks that will survive the coronavirus crash. Our top penny stock to buy today could grow up to 135% this year.
As always, there are gains to be had with penny stocks. You just have to know where to look...
Because they trade for $5 or less, a small change in price translates to a big percentage gain, sometimes double or more. That's a huge gain for the best penny stocks.
Whether or not you succeed with penny stock investing depends on how well you've studied the trends going forward. Luckily, we've done some of that digging for you.
The best penny stock today comes from an industry poised to stick around for a long time. And the current coronavirus lockdown only proves this sooner than we thought.
Why It's the Best Penny Stock
The future belongs to stay-at-home stocks, lockdown or not. This is thanks to a hidden economy powered by the Internet.
I'm talking about the incredibly robust YouTube economy. In 2019, the video streaming site counted 2 billion users. The platform is international, and as much as 90% of Internet users between 18 and 44 claim to have accessed it.
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One billion hours are streamed each day on YouTube, 62% of businesses use it, and that generated more than $15 billion in ad revenue for those businesses in 2019.
This is a stay-at-home market. Mobile video consumption rises by 100% every year. And 81% of businesses currently use it as a marketing tool - up from 63% in 2020.
The rise of video also comes at a time when advertising power has landed in the hands of individual web users.
This is a key part of why our top penny stock today is going to more than double this year...
The Top Penny Stock to Buy Right Now
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GoPro Inc. (NASDAQ: GPRO) has plunged 53% in 2020. But the company's financials show this might be all hype from the broad market downspin.
That would mean GoPro is one of those stocks at a tremendous discount from the coronavirus crash.
This is a $446 million market cap company with room to grow as video marketing increases and the YouTube userbase expands.
It's not profitable yet, but it's already seen nearly 1,000% revenue growth between 2018 and 2019. Its losses went from -$109 million to just -$14 million.
Sales have gone down amid the coronavirus panic, but the company is making the necessary adjustments to ride it out. With cuts to personnel and office space, they expect to save $250 million this year.
But the real growth will come once we're past all of this. Remote work has increased 91% over the last 10 years. And it's even created new jobs for YouTubers and video marketers on the web.
The number of YouTube channels grew more than 25% last year. And that's only expected to increase. These people will all need GoPros. So don't expect business to slow down permanently.
You can grab GoPro stock for just $2.86 while it's down. But we're sticking with a $7 growth target for 2020.
Action to Take: The YouTube market is going to explode as video becomes the primary marketing tool for individuals and small businesses. GoPro Inc. (NASDAQ: GPRO) has been the go-to company for creators on YouTube, so the stock should see some gains down the road as jobs become increasingly digital and people spend more time consuming video. You can buy shares for $2.86 today. Analysts are targeting $7 for 135% profit potential.
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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.