10 Cheap Tech Stocks to Buy for Under $10

Cheap stocks – those that trade for a small nominal dollar amount, say, less than $10 – are a double-edged sword.

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Cheap stocks – those that trade for a small nominal dollar amount, say, less than $10 – are a double-edged sword. And those blades can be even sharper in the case of tech stocks.

On the one hand, while the actual dollar price of a stock typically doesn’t tell you much about it (a $50 stock can be every bit as secure as a $500 stock), at a certain point, stock price does matter. Some institutional buyers (such as mutual funds) will avoid stocks under $10, and even more will give the cold shoulder under $5. Under the $1 mark, exchanges such as the New York Stock Exchange and Nasdaq likely will threaten to delist the stocks. That’s because typically, at those prices, stocks are trying to tell you something – and it’s often not a positive message.

The flip side? Institutional buyers can inflate stock valuations, so a lack thereof can keep them undervalued. The same goes for Wall Street analysts – typically, sub-$10 stocks may only have a few pros paying attention, further lowering the likelihood that these shares are overcrowded.

Here are 10 cheap tech stocks to buy that all trade for less than $10. Importantly, they all show significant growth potential, and according to TipRanks’ data covering the past few months, they all boast a “Moderate Buy” or “Strong Buy” consensus rating from the few Street analysts still covering the stocks. Just remember: Cheap stocks often are cheap for a reason; all of these carry considerable risk. Only approach these plays with funds from the speculative portion of your portfolio.

Disclaimer

Data is as of March 10.

Harriet Lefton
Contributing Writer, Kiplinger.com
Harriet Lefton, originally from the U.K., began her career as a journalist specializing in the niche world of metal markets. She graduated from the University of Cambridge before becoming a qualified U.K. lawyer. Now she has turned her attention to the world of financial blogging, covering U.S. stocks, analysts and all manner of things finance-related.