11 Oversold Tech Stocks to Buy According to Hedge Funds

6. AppFolio, Inc. (NASDAQ:APPF)

RSI: 37.03

Number of Hedge Fund Holders: 40

​AppFolio, Inc. (NASDAQ:APPF) provides cloud-based solutions for the real estate industry. Its primary products represent cloud tools for leasing, accounting, maintenance, and communication. The company integrates AI features to automate tasks and enhance operational efficiency for its clients. APPF’s advantage consists of large-scale and extensive partnerships with clients, serving over 19,000 property management entities and managing more than 8.3 million property units.

AppFolio, Inc. (NASDAQ:APPF) demonstrated strong financial performance in the latest reported Q1 2025, with revenue growing 16% YoY to $218 million, driven by increased customer value and ARPU growth. The company maintained healthy profitability with a non-GAAP operating margin of 24% and operating cash flow of 18%. The company’s customer base increased 6% in both customers and units compared to the previous year.

Strategic initiatives focused heavily on enhancing the resident experience, with key partnerships announced with Second Nature and Zillow joining the AppFolio Stack partner ecosystem. AppFolio, Inc. (NASDAQ:APPF)’s AI capabilities showed impressive results, with 89% of new customers utilizing AI-powered Realm-X capabilities, resulting in customers saving an average of 9.7 hours weekly and achieving a 73% higher lead-to-show conversion rate. Looking forward, management maintains its 2025 guidance for annual revenue between $920 million to $940 million, representing a 17% growth rate at the midpoint, while expecting to deliver non-GAAP operating margin between 24.5% and 26.5%. APPF’s guidance implies more than 20% EPS growth potential for the current year at least, making it one of the best oversold stocks to buy now.