Key takeaways:

• Household names and once high-flying companies can find themselves trading as penny stocks when industry challenges arise or their outlooks becomes uncertain

For a limited time, Selfwealth is offering $2 USD brokerage on the US share market. That should give you all the more incentive to consider expanding your global opportunities and accessing high-growth companies and industries not readily available domestically.

Until 31 August 2023, pay just $2 USD on buy and sell orders, and take advantage of our limited-time decrease in minimum parcel sizes to just $25 USD. That means even more flexibility to dip your toes into the market as and when you feel like it.

When it comes to smaller investment parcels starting at just $25 USD, what might be your options? Of course, you might wish to add to existing holdings in a stock you already own, or perhaps accumulate a new name on a dollar-cost-averaging basis. Alternatively, penny stocks trading under, or near $1 USD per share might cater to those on the lookout for high-risk, high-potential return opportunities. If you are prepared to go down this path, it even more important than usual to do your due diligence and ensure your portfolio is diversified, but there are also some well-known names in this space. Let take a look at a few penny stocks.

WeWork (NYSE: WE)

Founded in 2010, and one of the more high-profile names trading in penny stock territory, WeWork provides flexible workspace solutions to remote workers and organisations around the world. Its range of products includes private offices, customised floor solutions, workstations, as well as office amenities.

In addition, the company also provides value-add services like employer organisation and payroll services, remote workforce solutions, human resources benefits, IT equipment co-location solutions, plus dedicated bandwidth. Across 119 cities, the company has 723 open and coming soon' locations. The stay-at-home theme that came to prominence during the pandemic, mounting losses, and the recent exit of the company CEO and CFO have all weighed on WeWork share price.

Trivago NV (NASDAQ: TRVG)

German technology company Trivago specialises in internet-related services and products in the hotel, lodging, and metasearch fields. The company hosts information on more than 5 million hotels, functioning as a platform that affords travellers access to hotels through its compilation of listings from hundreds of booking platforms, hoteliers, and other providers. The site facilitates the search, comparison, and booking of hotels across as many as 32 languages. It also offers free and fee-based versions of its Hotel Manager product, allowing hoteliers to market their facilities on Trivago website.

One way that Trivago seeks to differentiate itself from competitors is through its business model. The company generates revenue from cost-per-click advertising, display ads, and by selling various subscription packages. Operating since 2005, and with global booking giant Expedia becoming a majority owner back in 2012, Trivago subsequently became the first German startup to list on the Nasdaq. 

SmileDirectClub (NASDAQ: SDC)

Amid a flurry of advertising, SmileDirectClub has become a name that is known right throughout the dental industry. The company is an orthodontics business that is mainly involved in the sale of invisible' aligners, impression kits, whitening gel, and retainers. 

Unlike more traditional peers, SmileDirectClub is more akin to a teledentistry company. Customers may choose to pay for SDC services up-front via a single payment, but the company derives much of its revenue through a subscription model that includes an upfront payment and monthly payments thereafter. The company sales have recently faced pressure amid what the company believes are macroeconomic headwinds influencing customer spending.

Faraday Future (NASDAQ: FFIE)

Anyone that has been following the electric vehicle revolution would be familiar with the long list of names vying to take up the challenge with incumbent leader Tesla. Since its formation in 2014, California-based Faraday Future has long been touted as one of the potential candidates that could disrupt the automotive industry. The company is a designer, developer, manufacturer, and distributor of electric vehicles and related products.

After several years of delays, the business recently launched a new version of its FF91 Futurist Alliance electric car, complete with bespoke AI and special tuning. It will be sold as part of a limited production run of just 300 units, albeit at a selling price of more than US$300,000 per car. Despite forecasting profitability by 2025, the company has faced an uncertain outlook since its eagerly-anticipated stock market debut back in 2020. This follows industry competition, and the capital-intensive nature of the company operations, which has seen it already raise funding twice in the first half of 2023. 

Trade the US market with top trading features, including Good till Date, Pre-Market trading, and Stop Loss orders, all while paying $2 USD on buy and sell orders for a limited time only.

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