Top 9 Trending Penny Stocks on Reddit

You’ve probably heard of GameStop’s massive short squeeze in early 2021. The meme stock movement started when small-time traders on Reddit’s r/WallStreetBets collaborated to take on Wall Street. And they won.

Even though the Reddit mob gets less mainstream attention now they’re still there, plotting their next big move.

Are meme and penny stocks volatile? Yes. Can they be profitable? Absolutely. The trick to trading these stocks is to have them on your watchlist first. That way you can be prepared when they make their move.

Read on to learn more about the ins and outs of trading penny stocks, plus get access to my list of trending penny stocks on Reddit!

What Are Penny Stocks?

Penny stocks are stocks that trade at $5 per share or less. All of them are cheap, and most of them are sketchy and unstable. I like them for one big reason — the gains from penny stocks can build your trading account quickly.

If you’re coming from the world of “real” stocks, the same tactics don’t apply. You’ll need strategies tailor-made for penny stocks.4

How to Research Penny Stocks

I don’t use fundamental analysis on penny stocks because their tradeability isn’t based on fundamentals. To get a good feel for these cheap stocks, you have to watch, watch, watch — actively keep an eye on how they move, and learn the patterns to really understand how the stock behaves.

Here are two things you can do when looking for the best penny stocks.

Learn From History

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Stock history is like poetry – it doesn’t repeat, but it often rhymes. Similarly, stocks are sort of like athletes, with their own ways of playing and a track record you can learn from. This means you can take a look at past performance to make educated guesses on how the stock will perform in the future.

A good way to find high-potential penny stocks is to use a platform like StocksToTrade and create watchlists of former big runners. Study their patterns, and spot which ones are poised to make another big run.

Analyze the Chart

Technical analysis entails identifying trends and patterns in a penny stock’s movement. It’s a more useful way of evaluating penny stocks than fundamental analysis — the beauty of penny stocks is their volatility, as the market tries to figure out what these sketchy companies are worth.

There’s really no secret to being a good technical analyst except practice — studying charts, getting in screen time, watching and trading stocks. Pattern recognition skills, which are essential in technical analysis, come from experience.

Benefits of Trading Penny Stocks

While cheap, penny stocks are often sketchy or, sometimes, even outright scams. So, why should you even consider trading penny stocks? Here are some pluses of trading penny stocks…

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Small Accounts Grow Quicker

Penny stocks might be cheap, but the gains add up. Trading penny stocks can build your account faster than trading pricier stocks. If you know what to do, you can grow your account size in a matter of weeks or even days.

Less Interference From Big Accounts

Wall Street doesn’t like penny stocks. They think penny stocks are sketchy, so major hedge funds and investment firms don’t really dabble into them – this means supply and demand are relatively predictable.

With large-cap stocks like Apple, a big investor or hedge fund manager could theoretically unload their shares and completely tank the price. With penny stocks, you’re much less likely to encounter something like that.

However, that doesn’t mean penny stock trading is risk-free. There are still many scams and unscrupulous people trying to make a buck at your expense, so be careful.

Prices Move Slower

Major traders often overlook penny stocks due to their sketchiness, so prices tend to move slower. This often leads to multi-day runs, which means you have more time to get in on a move.

Risks of Trading Penny Stocks

Penny stocks aren’t all sunshine and rainbows. There’s always a risk when trading stocks — and there’s definitely a risk when trading penny stocks.

Here are three things to watch out for when trading penny stocks:

99% of Penny Stocks Fail

Penny stocks are low-cost but high-risk. Most companies selling penny stocks ultimately fail — and when they fail, they fail fast. The key to mitigating this risk is having a solid trading plan and not getting greedy.

Penny Stocks Are Volatile

Penny stocks are volatile and often have low liquidity. This is a bad combo that makes them harder to unload when you’re experiencing losses.

On the other hand, you can turn this risk into reward if you’re disciplined. One of my favorite penny stock patterns is the panic dip buy. I’ll wait for a stock to panic, then enter a position when it starts its recovery. Many times this leads to a quick bounce — when it doesn’t I cut my losses quickly.

They’re Fraught With Fraud

The penny stock market is a playground for scam artists and market manipulators. The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) try to keep the scams in check, but it’s like trying to put out a fire on the surface of the sun.

Most news or social media posts about penny stock companies are created by people trying to pump the stock up. Never believe the hype, and do your due diligence before trading any penny stock.

What to Look for Before Trading

What do I look for before trading a penny stock? I look for unusual volume and news about the companies on my penny stock watchlists before I even think about trading them.

What kind of stocks make it onto my watchlists? Many are low float stocks — stocks whose publicly tradable shares total less than 10 million. Since their supply is so limited, changes in demand can cause big price swings.

Former runners also make it on my watchlists. These stocks have made runs before, so I know big moves are possible under the right conditions.

I learn the charts of my watchlist stocks well, how they react to shifts in volume and recent news. This gives me a better idea of the trades I’m looking to make — if I make any at all.

This is important: I’m only watching these stocks. I won’t trade them unless they fit my preferred setups. Measure twice, cut once.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

If you want to see more NO-COST watchlists, you can sign up for my weekly watchlist here.

9 Trending Penny Stocks on Reddit 2025

The top trending penny stocks on Reddit that I’m watching for the rest of 2025 are:

• NASDAQ: JTAI — Jet.AI Inc — The AI Data Center Penny Stock With the Yo-Yo Price Action
• NASDAQ: MLGO — MicroAlgo Inc — The Short Squeeze AI Penny Stock
• NASDAQ: RGTI — Rigetti Computing Inc — The Quantum Computing Sector Leader I’m Watching for the Next Run
• NYSE: QBTS — D-Wave Quantum Inc — The New Order Quantum Computing Stock
• NASDAQ: SOUN — SoundHound AI Inc — The AI Voice Stock That NVIDIA Sold Its Shares In
• NASDAQ: APLD — Applied Digital Corp — The AI Penny Stock That NVIDIA Is Still Invested In
• NASDAQ: TRNR — Interactive Strength Inc. — The Fitness Penny Stock With Acquisition News
• NASDAQ: MARA — Marathon Digital Holdings Inc. — The Bitcoin Miner Betting Big on AI
• AMEX: KULR — KULR Technology Group Inc. — The EV Penny Stock With a Side Of Bitcoin Volatility

The following are some of the stocks that people on Reddit have been talking about more than most of the market…

There’s no guarantee I’ll trade any of these stocks. I’m watching them to see if they match my preferred setups — only then will I trade them.

The best traders watch more than they trade — that’s what I’m trying to model here.

Here’s some background info on Reddit penny stocks:

• What is the most promising Reddit penny stock?

A stock with a lot of volatility like Interactive Strength Inc (NASDAQ: TRNR) is a good bet for the most promising Reddit penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.

• What are the top 3 Reddit penny stocks to buy now?

My top 3 Reddit penny stocks to buy now (as long as their price action is strong) are Interactive Strength Inc (NASDAQ: TRNR), Applied Digital Corp (NASDAQ: APLD), and Rigetti Computing Inc (NASDAQ: RGTI).

• Which Reddit penny stocks have a “Strong Buy” analyst rating?

Analysts don’t give any Reddit penny stocks “strong buy” ratings. These stocks are sketchy and unstable, and should never be investment targets. Always trade with a plan.

Let’s get to the picks …

Jet.AI Inc (NASDAQ: JTAI) — The AI Data Center Penny Stock With the Yo-Yo Price Action

My first Reddit penny stock pick is Jet.AI Inc (NASDAQ: JTAI).

On February 14, JTAI announced that it would be acquired by flyExclusive through an all-stock transaction.

The stock spiked 350%* after the news was announced. And the intraday stock charts show a lot of volatility.

As a result, I’ve been able to trade this stock four times since the news came out. Here’s an example from the first day of the spike:

The chart still shows us intraday volatility.

Partially because the float is only 572k shares …

A low supply of shares, anything below 10 million, will help prices spike higher when demand increases. It’s a basic law of supply and demand.

The price already bounced off of $5 on February 24. Keep an eye on those major support levels.

MicroAlgo Inc (NASDAQ: MLGO) — The Short Squeeze AI Penny Stock

My second Reddit penny stock pick is MicroAlgo Inc (NASDAQ: MLGO).

On Friday, February 21, we watched MicroAlgo Inc. (NASDAQ: MLGO) spike 910%*! From less than $2 per share to over $11 per share.

It quickly fell back into the $2 range. That’s what penny stocks do.

Then — it happened again!

The price spiked 500%* on March 24 after the company announced a plan to issue new shares the day before.

It was initially a bearish catalyst that caused share prices to drop … 

But the bearish momentum quickly lured in short sellers and turned the move into a huge short squeeze.

I wasn’t surprised. We see a massive short squeeze like this every month. Among smaller squeezes from week to week.

Look at my post below from the day of the squeeze:

It can be difficult for new traders to recognize a short squeeze …

Usually, there isn’t a visible catalyst. That’s what makes the squeeze so big.

When there isn’t a catalyst to push prices higher, short sellers become even more stubborn about their positions. They keep reentering at the highs and they keep getting blown up.

Look for stocks spiking more than 100% on the day without any news.

It also helps if the stock has a low float. The low supply of shares will exacerbate the short squeeze issue.

For example, these MLGO spikes didn’t have a catalyst. And StocksToTrade shows that the float was only 6.3 million shares before it diluted.

It was a perfect short squeeze stock.

Rigetti Computing Inc (NASDAQ: RGTI) — The Quantum Computing Sector Leader I’m Watching for the Next Run

My third Reddit penny stock pick is Rigetti Computing Inc (NASDAQ: RGTI).

This is a quantum stock that plunged in early January, alongside the rest of the sector.

The selloff on these quantum computing stocks happened in response to Jensen Huang’s comments about the sector on January 8.

The NVDA CEO mentioned that the market is still many years away from true quantum computers. And the sector took it as a massive gut punch.

IonQ’s earnings report on February 26 was another gut punch. IonQ beat revenue expectations, but the numbers also reminded traders that real profits are still way off in the future. RGTI dropped immediately in sympathy — falling from the low $10s to just above $8 — a level it hasn’t traded at since mid-January.

I’m still watching this sector because of its initial volatility. Past spikers can spike again.

Plus, on February 19, Microsoft announced an extremely bullish catalyst for the sector. Look at the heading below:

The chip expects to bring quantum computers to the market in “years, not decades”.

The sector bounced a bit after the announcement but it has yet to regain the momentum we saw in late 2024.

It could perk up at any time.

D-Wave Quantum Inc (NYSE: QBTS) — The New Order Quantum Computing Stock

My fourth Reddit penny stock pick is D-Wave Quantum Inc (NYSE: QBTS).

On February 19, in tandem with the Microsoft microchip news, QBTS announced that it sold a quantum computer to the Julich Supercomputing Centre at Forschungszentrum Julich.

The price rallied 30% after the news.

Jensen Huang says that we’re decades away from true quantum computers in the market …

Then Microsoft announces its quantum computer microchip breakthrough …

And the same day, QBTS announced that it sold a quantum computer to a client …

This sector is ready to make a HUGE comeback in the market!

Try not to blink. You might miss it.

SoundHound AI Inc (NASDAQ: SOUN) — The AI Voice Stock That NVIDIA Sold Its Shares In

My fifth Reddit penny stock pick is SoundHound AI Inc (NASDAQ: SOUN).

SOUN spiked 350%* after the market learned of NVIDIA’s stake in the penny stock on July 19, 2024.

And the stock made new all-time highs toward the end of 2024.

But on February 14 during premarket hours, we learned that NVIDIA was no longer holding shares of SOUN.

The stock dropped 30% that day.

It’s not the NVIDIA winner that it once was.

But this is still an inexpensive AI stock in a bullish AI sector that’s in full swing.

Past spikers can spike again.

Don’t count SOUN out. Look for bullish price action and wait for our trade patterns to develop.

Applied Digital Corp (NASDAQ: APLD) — The AI Penny Stock That NVIDIA Is Still Invested In

My sixth Reddit penny stock pick is Applied Digital Corp (NASDAQ: APLD).

On September 5, 2024, APLD started moving with news that NVIDIA (among other investors) bought a stake in the stock.

We’ve seen NVIDIA investments act as strong catalysts before …

• Serve Robotics Inc. (NASDAQ: SERV)
• SoundHound AI Inc. (NASDAQ: SOUN)

NVDA is still arguably the most popular AI stock in the U.S. market.

It holds a $3 trillion valuation. And it’s positioned to continue its dominance in the microchip industry.

Penny stocks like APLD have a lot to gain from NVIDIA’s investment announcements.

APLD was trading under $4 in September 2024, before the market learned of the NVIDIA investment.

Share prices reached $12 a few months later, on February 21, 2025. It spiked 280%* in total.

The price fell from those highs in late February, but NVIDIA is still holding onto APLD shares.

That bullish sentiment means that we could see a rally from this stock in March.

Interactive Strength Inc. (NASDAQ: TRNR) — The Fitness Penny Stock With Acquisition News

My seventh Reddit penny stock pick is Interactive Strength Inc. (NASDAQ: TRNR).

This isn’t just another random penny stock. TRNR made waves with news of its planned acquisition of Sportstech, a fitness equipment company with a solid footprint in Europe. Traders love a good acquisition story — especially when it comes with raised revenue guidance for the year. The company’s now targeting $50 million in revenue for 2025, which is a big step up for a stock that was basically off the radar a month ago.

The big spike came after the deal was announced, but now we’re watching to see if TRNR can actually hold the gains and start to build a real trend. I like the ambition here — but ambition doesn’t pay bills. Execution does. If TRNR starts slipping back toward pre-news levels, this could turn into just another overhyped runner that gave it all back.

For now, I’m watching for signs that it can hold higher lows and attract real volume — not just short-term momentum traders piling in and out. If the deal closes and we see some actual numbers to back up the hype, this could stay interesting.

Marathon Digital Holdings Inc. (NASDAQ: MARA) — The Bitcoin Miner Betting Big on AI

My eighth Reddit penny stock pick is Marathon Digital Holdings Inc. (NASDAQ: MARA).

Next up is Marathon Digital Holdings Inc. (NASDAQ: MARA), one of the most well-known crypto stocks on the market.

MARA crushed earnings — no other way to say it. Revenue jumped 37%, Bitcoin production is still strong, and the company stacked 18,146 new Bitcoin onto its balance sheet in Q4 alone. That’s a serious pile of digital gold.

But here’s the real twist — MARA isn’t just mining Bitcoin anymore. Management is talking up plans to become the infrastructure layer for AI inference — essentially positioning their data centers to handle the massive computing power AI apps require. It’s an ambitious pivot, but it makes sense. AI and Bitcoin both rely on serious hardware, and MARA wants to monetize that capacity every way they can.

Check out my full AI penny stocks watchlist here!

The stock popped after earnings, and with Bitcoin pushing toward all-time highs, MARA has wind at its back. That said, Bitcoin miners are notoriously volatile, and this one loves to give back gains when the broader market pulls back.

For now, I’m watching to see if MARA can hold its post-earnings spike and build a higher base. If Bitcoin breaks out again, MARA could ride the wave. If Bitcoin stalls, this thing could easily fade. It’s a classic sector-sympathy trade — just with more headlines.

KULR Technology Group Inc. (AMEX: KULR) — The EV Penny Stock With a Side Of Bitcoin Volatility

My ninth Reddit penny stock pick is KULR Technology Group Inc. (AMEX: KULR).

KULR is your typical shifty penny stock. Officially, they’re in the thermal management business, making cooling tech for batteries and high-performance electronics…

But lately? KULR’s been acting more like a Bitcoin holding company. They’ve been selling stock like crazy, using the proceeds to buy Bitcoin for their corporate treasury. That strategy worked wonders for MicroStrategy (NASDAQ: MSTR) — but KULR is no MicroStrategy.

Traders are watching KULR because of the combination of speculative buzz and actual partnerships — like the deal they signed with Worksport to enhance battery tech and US manufacturing. They’ve also got an AI cooling partnership in Taiwan with EDOM Technology. That’s enough to keep this on the radar.

But if Bitcoin pulls back — or if KULR keeps flooding the market with new shares — this could unravel fast. For now, I’m treating this like a momentum play with a side of Bitcoin volatility. It’s not an investment. It’s a trade — and a risky one at that.

*Past performance does not indicate future results

How to Trade Penny Stocks

Trading penny stocks is a high-risk, high-reward proposition. You might make money, but a lot more traders lose money.

Here’s my advice if you want to trade penny stocks:

Study Hard, Especially When You’re New

If you’re just starting as a trader, you need to build your knowledge account first. To do that, you need screen time and trade time. Start small and build your trading skills over time.

Don’t want to put actual money on the line? Try paper trading on a platform like StocksToTrade.

Maintain a Penny Stocks Watchlist

A watchlist helps you keep track of stocks you frequently trade or would like to trade. I make watchlists of former runners that might make more runs in the future, so I can get in on the run as soon as it happens.

I gave you a list of penny stocks to watch in this article, but don’t copy them blindly. Learn why I picked them and choose your own stocks to watch.

Use a Stock Screener

A powerful stock screener is absolutely essential — it’s your eyes in the trading battlefield. A trader-first platform like StocksToTrade will help you keep track of breakout plays and sudden volume spikes.

Full disclosure, I developed and invested in StocksToTrade — I love it because it’s tailor-made to how I trade. It’s the first trading platform I’ve encountered that has everything I need in one place, from incredible add-ons like the Breaking News Chat to intuitive, flexible charting.

Curious how StocksToTrade helps my trading? Sign up for a 14-day trial now and see how it can help you!

Learn the Patterns

Pattern recognition is essential in identifying which stocks to trade. This only comes with experience, so keep analyzing charts. Eventually you’ll get a sixth sense for how the stocks you’re watching respond to volume, what market makers pop up in their Level II quotes, how their price action works.

Remember — it’s not about memorizing patterns. A good trader understands why the patterns happen and adapts their strategies to fit the circumstances.

Find Trading Setups That Work for You

If you’re new, you probably don’t know which trading setups work for you. There’s only one cure for that — try a bunch out! These are my favorites:

• Morning panic dip buys
• Buying first green days
• Shorting first red days

This isn’t rocket science. Most of my top students and I have two or three patterns that we use again and again. That’s how we’ve gotten better at trading, and built our trading strategies.

Make a Trading Plan

A trading plan represents who you are as a trader and includes your trading style, preferred category of penny stocks, risk tolerance, account size, and many other factors. It helps you focus and keeps you from buying random stocks that don’t fit your objectives and goals.

A solid trading plan helps you reduce risk by setting a defined loss. Once you’ve hit your loss, you need to exit the trade.

Win or lose, I call it a successful trade if you build, execute, and follow your trading plan.

Aim for Small Gains and Cut Losses Quickly

Don’t hold and hope when dealing with penny stocks. I know it’s tempting to hold onto a stock and wait for it to reach even higher prices, but the chances of it happening to a penny stock are pretty slim. Instead, secure the small wins and cut losses as quickly as possible.

Record Every Trade and Learn From Them

Every trade is a learning experience. Keep a log of ALL the trades you made and review them regularly. Identify what worked, what can be improved, and what needs to be avoided.

Are Penny Stocks Worth It?

Yes, penny stocks are worth it. As of the time of writing, I’ve made $7.7 million trading penny stocks over my 20-plus years in the stock market.

I think penny stock trading is the best way to build small accounts quickly. That said, it’s also a surefire way to lose money if you don’t know what you’re doing.

Can Penny Stocks Make You Money in 2024?

Penny stocks can make you money this year — especially now that OTC stocks are starting to run again. Check how SERV and ASTS performed over the past few months for proof.

You can also take a look at my most recent trades.

Learn How to Make the Right Penny Stock Picks

Now that you’ve learned the top tips for trading penny stocks, it’s time to learn how to pick them yourself. If you want access to my daily watchlist and so much more, I recommend joining my Trading Challenge.

I’ll share what I learned the hard way. I had no one to show me the ropes. If you promise to study hard, I’ll help you become a self-sufficient, safe, and smart trader — and avoid some of the bumps on the way.

This isn’t a get-rich-quick class. I don’t accept everyone — I want people who work hard and appreciate what I teach. It’s up to you to develop your own trading strategies, but you’ll do so with the support of my top former students and a raft of current ones — all of them working together to get the best out of the trading lifestyle.

Here’s what you get:

• Interactive webinars with me and my top students
• Over 7,000 video lessons
• Entry to my incredible community chat room
• Access to my 30-Day Bootcamp, my DVD collection, and much more!

Key Takeaways

Reddit communities like r/WallStreetBets have the power to pool people together and make penny stocks into real stocks, like we’ve seen with GameStop. I’m not telling you to trade every Reddit meme stock out there, but they’re definitely worth keeping an eye on.

The thing that matters most is having a trading plan and discipline. Do your research, and don’t follow the hype. That’s the way you get the good out of trading without taking the bad.

Trading isn’t rocket science. It’s a skill you build and work on like any other. Trading has changed my life, and I think this way of life should be open to more people…

I’ve built my Trading Challenge to pass on the things I had to learn for myself. It’s the kind of community that I wish I had when I was starting out.

We don’t accept everyone. If you’re up for the challenge — I want to hear from you.

Apply to the Trading Challenge here.

Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.

Do you have any Reddit stock picks? Let me know in the comments!