The saying goes, “You have to spend money to make money.” But what if you could spend just pennies and get back dollars? That’s the allure of penny stocks, which are stocks that trade for under a dollar with small market capitalizations. However, investing in penny stocks is not a guaranteed way to make money.
Stocks are valued based on a combination of emotions like fear and greed, as well as mathematical predictions. This makes investing in penny stocks risky, especially if you are hoping for a big increase in value. Despite the risks, some investors are willing to take a chance on high-potential penny stocks.
One such stock to watch is Ginkgo Bioworks (DNA), a company with ties to MIT that specializes in cellular biological engineering. They use genome editing to develop products for various industries, such as pharmaceuticals and agriculture. Ginkgo Bioworks has partnerships with companies like Bayer to develop plant probiotics for better crop yield.
With a current price around a dollar and a market cap of $1.86 billion, Ginkgo Bioworks is a promising penny stock to consider investing in. Keep in mind that investing in penny stocks carries risks, so it’s important to do your research before making any investment decisions.