The 3 Penny Stocks You Swore You’d Never Buy (But You’ll Check Anyway)

Key Points

• Vaxart is a clinical-stage biotech developing oral vaccines that could transform global immunization if its platform proves effective.
• Microvision develops cost-effective lidar technology for autonomous vehicles, with upside tied to industry adoption and potential partnerships.
• Datavault AI focuses on monetizing digital data through AI and blockchain tools, offering speculative exposure to the emerging data-as-an-asset theme.

Penny stocks attract speculative investors looking for high-risk/high-reward opportunities. That means looking for companies with disruptive technologies, that are part of an emerging trend, or ones that have a compelling turnaround story. Many of these companies will never survive or scale, but if just one of them delivers, investors can get impressive returns.

For investors who believe strength lies in numbers, MarketBeat offers a tool that lists the 100 Most Popular Penny Stocks. This is based on the number of MarketBeat subscribers following each company. While that’s no guarantee of success, it can give an investor more conviction in the stock’s potential.

For some investors, a penny stock is any stock trading for $5 or less. However, the stocks covered by this screener fall under the traditional definition of penny stocks. That is, stocks with a price below $1. These stocks are highly volatile. Be sure to conduct your own research and know your own risk tolerance before starting a position.

Vaxart: A Potential Game-Changer for Global Immunization Efforts

Vaxart Inc. NASDAQ: VXRT is a clinical-stage biotechnology company developing oral vaccines for infectious diseases, including influenza, norovirus, and COVID-19. Unlike traditional vaccines administered by injection, Vaxart’s tablet-based platform aims to simplify distribution and improve global accessibility.

The bull case for Vaxart centers on its innovative approach. If the company can get FDA approval and successfully scale, its oral vaccines could reduce logistical barriers to mass immunization campaigns and open the door to significant licensing partnerships. Before that happens, positive trial results or a commercial collaboration could dramatically shift sentiment and valuation, given the stock’s current low base.

However, clinical risk remains the biggest challenge. Vaxart has yet to bring a product to market, and vaccine development is costly and unpredictable. Competition from established players with larger R&D budgets also limits visibility. For now, Vaxart is more of a long-term speculative bet on platform validation than near-term profitability.

The MarketBeat analyst ratings for Vaxart show only a single analyst covering the stock. That’s not uncommon, but it should raise the antenna of investors. Plus, VXRT stock has just 18% institutional ownership. On a more positive note, the stock only has about 2% short interest, which may reduce at least some of its volatility.

Microvision: Developing Cost-Effective LiDAR Units For Autonomous Driving

Microvision Inc. NASDAQ: MVIS develops LiDAR (light detection and ranging) sensors used in autonomous vehicles, smart infrastructure, and industrial sensing. The company’s hardware and software solutions enable precise 3D mapping needed for self-driving and advanced driver-assistance systems (ADAS). Microvision’s focus lies in developing compact, cost-effective LiDAR units that could appeal to automakers seeking scalable sensor solutions.

The bull case for Microvision rests on two factors: the continued march toward vehicle automation and potential partnerships with major automotive manufacturers. If the company can demonstrate superior performance or cost advantages, it could secure supply agreements or licensing deals that significantly improve revenue visibility. Microvision’s technology could also see applications beyond vehicles, including robotics and smart cities, adding optionality to its growth story.

Yet despite the promise, Microvision faces stiff competition from LiDAR heavyweights like Luminar NASDAQ: LAZR, Innoviz NASDAQ: INVZ, and Ouster NYSE: OUST. The path to profitability is uncertain, and recurring delays in the commercial adoption of LiDAR technology continue to frustrate investors.

MVIS stock is covered by three analysts and has a consensus price target of $2.50, a 169% gain from its Jan. 15 closing price. However, like many speculative stocks, Microvision has low institutional ownership (around 30%) and high short interest (around 21%). That means long-term investors will need to be mindful of high volatility.

Datavault AI: Trying to Democratize Data Ownership

Datavault AI Inc. NASDAQ: DVLT operates at the intersection of artificial intelligence, data monetization, and digital asset management. The company helps organizations turn their raw data into tradable, revenue-generating assets through its patented Datavault platform. By combining AI, blockchain, and analytics tools, Datavault AI aims to democratize data ownership and unlock monetization opportunities that traditional systems overlook.

The bullish thesis for Datavault AI lies in its niche focus and scalability potential. As data becomes an increasingly valuable commodity, businesses and even individuals are seeking ways to safely monetize digital information. Datavault’s technology could benefit from growing AI adoption across sectors and from increased awareness of data sovereignty. Early-stage traction or strategic partnerships could catalyze investor confidence.

Still, Datavault AI operates in a highly experimental space. The company’s business model is still evolving, and its path to meaningful revenue growth is unproven. Institutions own less than 1% of the stock, and short interest is over 16% as of this writing. Investors considering DVLT stock should recognize it as a long-term, speculative position built on belief in data-as-an-asset innovation rather than near-term earnings potential.