3 Best Tech Stocks Under $20 Per Share


They say don’t judge a book by its cover. You could say the same for low-priced stocks; they have something of a reputation. However, much of this reputation for low quality and high volatility comes from penny stocks.

Still, if 2022 has taught us anything, it’s that well-known, high-priced stocks are just as likely to experience significant declines. PayPal (down 63%), netflix (down 71%), and Shopify (down 77%) offer three examples of stocks that traded well above $200 a year ago, but lost more than half their value in just six months.

In fact, low-priced stocks can be great investments; you just need to know where to look. With that in mind, let’s explore three fantastic tech stocks that are trading under $20.

Instantaneous

Instantaneous is one of the largest and best-known technology companies with a stock price below $20. The company operates Snapchat, a camera app that allows users to capture and share images and videos. The app also uses various augmented reality (AR) filters and lenses, some of which include ads.

Snapchat caters to a younger demographic, and the company boasts that most young people in developed economies are familiar with and frequently use Snapchat. And while Snapchat certainly has an appealing audience for advertisers, the company has struggled recently due to three main issues:

  • Competition from TikTok.
  • Advertisers are spending less amid macro concerns.
  • Lack of non-advertising revenue.

As for TikTok, the American authorities could intervene for the benefit of Snap. There are growing calls from policymakers to restrict TikTok in the US due to security concerns. Meanwhile, Snap recently announced that it is introducing a new $3.99/month subscription plan called Snapchat+ which unlocks certain features for users. Snapchat is unlikely to fix the ad addiction, but it’s a good first step.

Snap shares have fallen more than 72% since the start of the year and are now trading at around $13. The company’s market capitalization has fallen from over $72 billion at the start of the year to just $21.2 billion today. Still, I’m still bullish on Snap. The company’s young user base will only age over time. As they do, and provided they continue to use Snap, they will have more disposable income that will appeal to advertisers. Additionally, any restrictions placed on TikTok would greatly benefit Snap.

flashing charging

Electric vehicles (EVs) are an age-old trend that no one should ignore. Just last week, ExxonMobil CEO Darren Woods has said that by 2040, all new cars sold in the United States will be electric vehicles. I think that timeline is unlikely, but there’s no doubt there will be a lot more EVs on the road in 2040 – it’s just a matter of How many.

And with all these electric vehicles coming and going, you have to ask yourself, “Where are they going to charge?” The obvious answer is at home, where owners can plug in their electric vehicle and do whatever they do at home. But what about when you’re on the road and need a recharge? Gas stations are ubiquitous, but electric charging stations are still hard to find in many parts of the country. Massive investments in charging stations will need to be made to make electric vehicle ownership practical in the United States.

It’s there that Blink Charging Co. comes in. It manufactures residential and commercial charging equipment. Its products speed up the charging process, saving time for electric vehicle drivers at home or on the road. The company is enjoying supercharged revenue growth of 339%, but its overall revenue is still miniscule at just $29 million. However, if America goes electric, Blink’s modest revenue will skyrocket as charging stations sprout up all over America.

With shares trading around $16, Blink is a low-priced stock that investors with a bullish view on electric vehicles should consider.

Semrush Fund

Semrush Fund helps its clients succeed on the web. The company is an all-in-one digital marketing platform that provides software as a service (SAAS). It provides tools that facilitate search engine optimization (SEO), competitor research, and social media marketing. To put it bluntly, Semrush helps its customers get clicks. Some tools measure how well client websites perform against search engines such as Google and Bing. Others suggest how to improve page layout, content, or design to generate more clicks from major search engines.

With a market cap of just $1.8 billion, Semrush is still a small player in the digital advertising world compared to mega-caps like Alphabet, Meta PlatformsWhere Amazon. Nonetheless, its tools are sought after by digital marketers looking to help businesses increase traffic to their websites.

Semrush generated $205 million in revenue over the past 12 months, up 43% year-over-year. Its gross margins reach an impressive 80%; however, the company has yet to make a profit. Analysts expect revenue to grow between 25% and 35% over the next two years as the company moves closer to profitability.

This one is not for the faint of heart – Semrush is down 37% year-to-date. Still, the stock rebounded from its May low of $7.41 and is now trading near $13 per share. For investors looking to roll the dice on a speculative small cap internet stock, Semrush might be a name to consider.

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