Day traders often prefer penny stocks because of their lower prices compared to bigger companies like Microsoft and Amazon. However, these stocks are also known to be more risky. Some top penny stock companies include GoPro, EVgo, NYCB, and QuantumScape.

GoPro, which was once valued at over $2 billion, has now become a penny stock with a market cap of less than $60 million. The company faces challenges due to being a one-product firm, specializing in action cameras. For GoPro, the key challenge is its struggle to diversify.

EVgo stock price has drastically declined from an all-time high of $24.25 to $1.70, with concerns about the electric vehicle industry which has resulted in the decline of companies like Tesla and Ford. However, EVGo's revenue has continued to rise, showing signs of modest growth in a slow industry.

Eventbrite, another penny stock, provides ticketing and event services globally. The company's stock price has dropped significantly over the years, from $40 to $5, despite an increase in the number of events using its platform. Eventbrite's business is still growing, but at a slower pace than before.

New York Community Bank (NYCB) is another penny stock to consider, with its shares hitting a low of $1.67 earlier this year. Investors are concerned about the bank's exposure to the commercial real estate industry, bringing back memories of other bank collapses in 2023.