When people think of tech stocks, prominent firms like Amazon, Google and Facebook come to mind as the stocks that dominate on a global scale. Tech companies are some of the fastest-growing companies, and the potential for gains can be significant. Moreover, the dominance of tech firms can lead to considerable returns. However, you can invest in a range of tech stocks with shares trading around various price points. If you want to find the next potential blockbuster, then looking at smaller companies with shares priced under $5 could be ideal. Here are the best cheap tech stocks under $5.
Quick Look at the BEst Cheap Tech Stocks Under $5:
Best Tech Stocks Under $5
During the pandemic, many tech stocks shot up in price as they were perfectly suited to the lockdown trend. However, this year has been a difficult time for the stock market, and many tech stocks have suffered significant losses.
After the recent market corrections, potential opportunities are on the horizon. Here are the best tech stocks under $5.
Boxlight Corp. (NASDAQ: BOXL)
Boxlight is an education technology company designed to help students learn through an engaging and effective educational tool for the classroom. The company develops and sells an integrated solution suite that features interactive displays, collaboration software, supporting accessories and professional services.
Students returning to classrooms following a tumultuous two-year spell at home have helped drive the tech company's demand, which recently reported FY22 revenue guidance of $250 million. In addition, Boxlight reported revenue of $54 million for the Q2 despite supply chain issues and logistical challenges.
A mixed earnings report saw better-than-expected sales. However, profitability was impacted by macro headwinds.
eMagin Corp. (NYSEARCA: EMAN)
eMagin is a New York-based electric components manufacturer. It specializes in organic light-emitting diode (OLED) technology and micro-OLED displays used in virtual imaging products. The company's OLED displays are used in a variety of products, including military aviation helmets, military weapons sights and targeting systems, night vision and thermal imaging devices, training and simulation, visualization for ocular surgery, mobile ultrasound and augmented reality applications.
The company recently reported earnings, which included revenue increasing 9% year-over-year (YOY) to $7.4 million and a gross profit of $2.5 million.
The majority of its revenue comes from sales of OLED microdisplay products. Despite the recent supply chain issues, eMagin has been able to adapt, as shown by its Q1 earnings.
Trivago (NASDAQ: TRVG)
Trivago, founded in 2005, is a hotel search company focused on reshaping the way travelers search for and compare hotels while enabling hotel advertisers to grow their businesses by providing access to a broad audience of travelers through the company's websites and apps. You can search for and compare hotels and accommodations to get the best price and services available at your budget.
The company operates in three operating segments — the Americas, Developed Europe, and the Rest of the World.
Online travel shopping company Expedia owns a majority stake in Trivago, with the acquisition helping to push Expedia’s presence in Europe.
Like many travel stocks, Trivago took a big hit from the pandemic. However, signs of life in the market are building as COVID-19 variant concerns dissipated during Q1. Trivago will benefit from the increased demand and the travel market rebounding as summer approaches.
Trivago faces competition from Booking.com and TripAdvisor. However, despite being smaller than its counterparts, the company reported revenue increasing 166% to 101.6 million euros in the Q1. As a result, Trivago is one to watch.
FuboTV Inc. (NYSE: FUBO)
FuboTV is a sports-first, live-TV streaming company offering subscribers access to tens of thousands of live sporting events annually as well as news and entertainment content. Its platform, fuboTV, allows customers to access content through streaming devices and on smart TVs, mobile phones, tablets and computers.
The company offers subscribers a live TV streaming service with the option to purchase incremental features available for purchase that include additional content or enhanced functionality best suited to their preferences. The operating segments of the group are Streaming and Online Wagering.
The company focuses primarily on serving customers in the United States, Canada and Spain. Depending on the country, channels offered include access to the English Premiere League (EPL), NFL, MLB, NBA and international football.
FuboTV has significantly benefitted from households cutting cable bills and opting for streaming services. As a result, North American paid subscribers increased 81% YOY, topping 1 million in Q1.
The company has been able to report solid revenue and subscriber growth. However, its share price has traded poorly due to its mounting losses. Nevertheless, demand is increasing, implying growth potential.
Huya Inc. (NYSE: HUYA)
Huya is a technology-driven content company with live game streaming as its core business and a focus on building a live broadcast platform. Its products include the live broadcast platform Huya Live and Nimo TV, a popular game live broadcast platform in Southeast Asia and South America.
The company cooperated with e-sports event organizers and game developers to develop e-sports live streaming across its platform.
Furthermore, Huya has extended its content to other entertainment genres, including talent shows, anime and outdoor activities. The entertainment across Huya’s streaming service and its development across a growing market show great potential at such a cheap stock price.
Meanwhile, analyst Brian Gong at Citibank, owned by Citigroup Inc. (NYSE: C), lowered the company’s price target but kept a Buy rating on the stock. This rating comes following its Q1 results, in which, despite headwinds, Huya maintained a strong cash position.
Why Invest in Tech Stocks?
The initial goal for investors is to receive the highest returns. High-risk investments such as the tech sector can lead to some of the highest returns. The market may not be for everyone, but here are a few reasons to invest in tech stocks.
Innovation: Tech companies are constantly innovating and improving their products. The market is highly competitive and requires regular advancements. Buying shares in a developing stock can see increased demand at an accelerating rate.
However, with a high number of competitors, it is crucial to pick the right stock and one that can differentiate itself from the competition it faces.
High Demand: Tech companies have dominated over the past decade. The demand for technology has exceeded expectations, and there is no getting away from tech products in everyday life.
During the pandemic, households needed technology more than ever, and for many tech companies, their share price soared.
What to Look for in Tech Stocks
The majority of large tech firms appeal to the masses, resulting in a large customer base of people who use tech products and services every day, ensuring constant and increasing demand. Look for popular companies showing a growing number of sales.
Strong balance sheets: Economic conditions can play a factor in technology industries. Consumers are likely to spend more during positive sentiment and less during unfavorable conditions. Therefore, it is essential that the balance sheet is reliable during times of struggle. Signs of success during upswings in the market are also important.
Consumer interest: New technologies bring new opportunities. However, strong consumer interest is essential for a company to become profitable and sustain high levels of revenue.
Top Tech Stock Movers of the Day
You can buy many types of tech stocks in multiple industries, but it can be challenging to choose the ideal company or companies for your portfolio. Here is a list of insights and reviews into the best tech stocks available.
|SMSI||Smith Micro Software||$0.84||15.09%||350.7K||Buy/Sell|
|AGMH||AGM Gr Hldgs||$1.63||7.23%||2.4K||Buy/Sell|
|BCAN||BYND Cannasoft Enterprise||$0.89||7.15%||93.6K||Buy/Sell|
Frequently Asked Questions
What is the best stock to invest $1 in?
If you only have $1 to invest, penny stocks are probably the best choice, but it may be best not to invest at all at this point given the limited funds at your disposal. However, there is also an option to purchase fractional shares if the stock is above $1. The answer will vary depending on what you are looking for in a stock.
What is the cheapest technology stock to buy?
Many tech stocks have fallen in 2022, meaning tech companies are being offered at a lower price. However, with numerous penny stocks and constant changes in prices, the cheapest technology stock will continually change as companies rise and fall.
What are the best tech stocks under $5?
Check out Benzinga’s guide to the best tech stocks under $5 in the article above.