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The cloud computing industry is seeing a huge shift over the next five years. According to Markets and Markets, cloud companies will be generating a total annual revenue of $832 billion by 2025. That's a whopping 212% from what it was in 2019, just $266 billion.
Our best penny stock to buy now is an opportunity to grab a piece of that. In fact, it's poised for 382% growth within the next 12 months.
Penny stocks have great upside potential when they catch the right break. The U.S. Securities and Exchange Commission defines penny stocks as any stock trading under $5.
The best penny stocks will typically pop on a good earnings report or a technological breakthrough. For example, we recommended Gogo Inc. (NASDAQ: GOGO) in July, and it's gained 217% since then.
Gogo is an example of a company on the fringes of a tech revolution. It provides Wi-Fi to airlines, and it's one of the leaders developing their 5G networks right now.
Other top penny stocks can simply gain on a market rally.
Of course, the direction of the market is incredibly volatile amid a global pandemic. The CBOE Volatility Index is inching close to 30, pointing to high levels of investor worry. Friction ahead of a presidential election doesn't help things at all.
But the volatility could actually be a boost for our penny stock today. Here's why…
Why It's the Best Penny Stock Today
Cloud computing is one of the most resilient trends in the market right now. More enterprises than ever need an agile cloud solution to keep functioning like normal while everyone works remotely.
Forty-two percent of the U.S. workforce had started working from home during the first COVID-19 outbreak. And many of those aren't quitting, vaccine or no vaccine.
Telework was going to be a trend with or without the pandemic. The pandemic merely accelerated it. And that's why you can expect accelerated growth from stocks geared toward remote communications.
Three stocks every investor should consider owning today, and dozens of stocks to drop immediately. Click here…
A great example of this was Teladoc Health Inc. (NASDAQ: TDOC), a stock we have talked about before. This is a company that facilitates virtual communication and records keeping between patients and doctors.
Teladoc's remote appointments soared during the peak of the lockdowns earlier this year. Its stock is now up 171% for the year.
But that company is fairly "niche" compared to our best penny stock today. It's also trading at $226… not exactly a penny stock.
The penny stock we're going to show you has a broader range of potential customers. In fact, almost every business could benefit from its services as the working world undergoes digital transformation.
Here's one of the best penny stocks to buy with 382% profit potential…
The Best Cloud Penny Stock Now
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.