Cash App is a financial app that makes it easy to send money to family and friends, but it also offers commission-free stock trading on thousands of stocks.
This low-fee approach makes Cash App a popular app for buying and selling stocks. The app lists a few penny stocks you can trade. These are seven penny stocks on Cash App you could trade in 2024.
What is a penny stock?
Contrary to what the name suggests, a penny stock is not a stock that trades for just a penny. The term “penny stock” typically refers to publicly traded stocks that have a share price below $4 per share and a market capitalization below $300 million.
Cash App doesn’t typically list penny stocks on its app. In fact, Cash App states that it only wants to list stocks whose share price has been at least $5 over the past 52 weeks and whose market capitalization is $300 million or more. But some stocks that were originally listed on Cash App have dropped in price and become penny stocks and can still be traded on the platform.
The 7 Best Penny Stocks on Cash App in 2024
The app generally doesn’t list penny stocks on Cash App, although there are some that are still available to trade. Here are the seven best penny stocks currently available on Cash App.
1. Fuel cell energy (FCEL)
FuelCell Energy is a hydrogen producing company whose goal is to create more sustainable energy sources to power everything from commercial buildings to transportation. FuelCell announced a 2023 partnership with Exxon Mobil to develop carbon capture technology. The company also partnered with the University of Connecticut to power a building with its solid oxide fuel cell technology.
FuelCell stock has had a rough ride, falling from its high of over $26 in February 2021 to less than $0.50 in August 2024. If you believe in the company’s mission and its cash balance of over $300 million in cash and short-term investments, this could be a buy with tremendous upside potential.
You can trade FuelCell shares on Cash App under the ticker symbol FCEL.
2. iQIYI Inc. (IQ)
iQIYI Inc. is a China-based entertainment company responsible for several successful drama series and billions of viewers. Revenues come largely from in-content advertising and revenue per member has grown steadily over the past six quarters.
iQIYI Inc. still had over 100 million members as of 2023, but has refused to disclose subscriber numbers recently. This caused the stock to fall further and move into penny stock territory. While the stock is just under $3.50 per share, it could rise if iQIYI repeats its success in the near future with the release of another hit television series.
You can trade iQIYI Inc. stock on Cash App under the ticker symbol IQ.
3. OPKO Health Inc. (OPK)
OPKO Health Inc. is a multinational biopharmaceutical and diagnostics company. The diagnostics division accounts for the majority of its revenue, while the pharmaceutical division accounts for only about 25% of total revenue. The company has been loss-making for some time, and many research institutes expect OPKO to continue to be loss-making.
But the company still has a market cap of over a billion dollars and share prices are up over 40% in the last six months. This stock is extremely volatile, but if recently approved pharmaceutical companies (in partnership with Pfizer) do well, the stock could rise. The current price is around $1.50 per share, but could change quickly.
You can trade OPKO Health Inc. stock on Cash App under the ticker symbol OPK.
4. NIO Inc. (NIO)
NIO is a China-based electric vehicle manufacturer with a huge market cap (over $8 billion) but a teeny-tiny share price. NIO was once one of the darlings among electric vehicle stocks, with investors bidding it up to $60 per share, but has since crashed to just under $4 per share—qualifying NIO as a penny stock.
In addition to selling electric vehicles, NIO has pioneered battery swapping technology. The company also recently completed its 50 millionth battery swap. This allows drivers to quickly swap out a battery instead of waiting at a charging station, which has been a success for the company. The stock has suffered – like other EV stocks – due to high interest rates; but with these potentially fading in the coming months and years, it could be a good time to build a position in NIO stock.
You can trade NIO shares on Cash App under the ticker symbol NIO.
5. Grab Holdings (GRAB)
Grab Holdings is an Uber-like technology app that offers ride-hailing and delivery services. It even offers financial services. This super app has conquered the market in Southeast Asia, buying up Uber’s operations in the region, as well as taxi services, supermarket chains, and more.
Grab was launched during the 2021 tech stock hype and has since seen its share price fall by over 71%. However, with its growth, Grab is moving closer to profitability. Its share price is currently trading at under $3.50 per share, making it a penny stock that potentially has serious upside potential.
You can trade Grab Holdings shares on Cash App under the ticker symbol GRAB.
6. Lucid Group, Inc. (LCID)
Lucid is another extremely popular electric vehicle maker that soared when it went public in 2021. Unfortunately, the stock then plummeted to under $5 per share.
Lucid hasn’t even come close to matching the production numbers of its competitors, but it’s still going strong; the company is on track to produce over 9,000 cars in 2024. Lucid still has a long way to go to really take off and challenge rivals like Tesla. The company recently received a private investment of $1.5 billion from the Public Investment Fund, Saudi Arabia’s sovereign wealth fund. This builds confidence in Lucid’s future potential, and the stock could continue to benefit.
You can trade Lucid Group, Inc. stock on Cash App under the ticker symbol LCID.
7. Peloton Interactive, Inc. (PTON)
Peloton Interactive, Inc. is a popular fitness and technology company known for its home exercise bikes. It also offers a wide range of fitness services. Peloton rose to world fame when lockdowns occurred in 2020 and everyone wanted the option to workout at home.
Since then, Peloton’s stock prices have plummeted, falling from a high of $162 in 2021 to about $3 per share today. But Peloton is still going strong – pun intended – and recently partnered with Google to drive interest in Peloton classes by offering them to premium Google Fitbit members. Although Peloton’s revenues are down compared to a few years ago, there could be some upside to buying this stock outright at bargain prices in 2024.
You can trade Peloton Interactive, Inc. stock on Cash App under the ticker symbol PTON.
A Word of Warning About Trading Penny Stocks
Penny stocks are known for their volatility – and that volatility can bring a lot to investors. However, penny stocks are a very risky investment and you can lose a lot more money trading them than you would with a more robust company stock or fund.
These stocks are usually companies that have fallen apart with poor track records. However, just because the stock is cheap doesn’t mean it can’t get cheaper. For example, if a well-known stock continues to burn cash and fails to drive demand for its product or service, it can cause investors to continue to sell shares, driving the price down.
Penny stocks also often face a higher risk of bankruptcy. As publicly traded companies, penny stock companies work for shareholders, so they may take riskier steps to boost the stock price, which can quickly lead to bankruptcy.
If a penny stock company – or any company for that matter – files for bankruptcy, share prices could fall even further. Stock exchanges could delist the company entirely, making it impossible to sell your shares. Depending on the type of stock you hold, you may also be ineligible for any proceeds from the sale of company assets.
All of this is to tell you that you should be extremely cautious when investing in penny stocks. There is a very real risk of losing money, including a total loss of your invested capital.
This article originally appeared on GOBankingRates.com: 7 Best Penny Stocks on Cash App for 2024
