In this article, we will take a look at the 12 most promising new technology stocks according to analysts.
Our focus in this article would be new tech stocks, by which we mean those tech companies that went public over the past couple of years. The 2022 market crash hammered the IPO markets as companies struggled to justify their valuations and secure cash.
Tech companies also struggled to sell themselves to other, big companies. According to a report by Bloomberg, which cited data from PitchBook, in the first three quarters of 2022, completed venture-backed acquisitions had a net worth of about $81.7 billion, showing a huge drop from $137.8 billion in the comparable period of the previous year.
However, amid the rise of tech stocks at the start of the year, analysts were hopeful that the IPO markets could see a comeback this year. A Bloomberg report published on February 7 said that 7 IPOs were expected to raise about $900 million and begin trading by February 7. However, the report warned that a few major IPOs don’t reflect a broader bullish sentiment and does not necessarily mean that we are about to witness another IPO spree.
Another Bloomberg report published on February 1 pointed to the optimism brewing up in the IPO space. The report said that major banks in the US are pushing their clients for IPOs amid encouraging signs. The report said the Cboe Volatility Index touched its one-year low in January.
The report cited Steve Maletzky, head of equity capital markets at William Blair & Co, who said the following:
“We’re advising our clients who are already in the IPO pipeline and fit the criteria that investors are focused on in today’s market: companies that have proven commercial scale and strong top-line growth in addition to proven profitability.”
However, all of this was before key data that showed that the Federal Reserve still has a long way to go in its battle against inflation.
Despite all of this uncertainty, there are a few new tech stocks that have promising growth prospects, according to market analysts.
Photo by Ruben Sukatendel on Unsplash
Our Methodology
For this article, we used the Finviz stock screener to identify technology stocks that went public over the past two years. From the long list of these companies we chose the ones whose average price target estimated by analysts for one year is at least 50% above their today’s stock price. From the resultant dataset we picked 12 notable tech stocks with highest upside potential based on average analyst price targets. With each stock we have written its one-year price target estimate, taken from Yahoo Finance.
Most Promising New Technology Stocks According to Analysts
12. IDEX Biometrics ASA (NASDAQ:IDBA)
Number of Hedge Fund Holders: 0
Estimated One-Year Price Target: $75.00
Identity authentication services provider IDEX Biometrics ASA (NASDAQ:IDBA) is one of the most promising new technology stocks according to analysts.
In November, IDEX Biometrics ASA (NASDAQ:IDBA) received a volume production order from its partner IDEMIA, representing the largest order to date for IDEX TrustedBio sensors.
In November, IDEX Biometrics ASA (NASDAQ:IDBA) posted its third quarter results. GAAP EPS in the quarter was -$0.01, which beat estimates by $0.55. Revenue in the period jumped about 27.4% on a YoY basis to come in at $0.93 million, missing estimates by $0.06 million.
11. Wallbox N.V. (NYSE:WBX)
Number of Hedge Fund Holders: 4
Estimated One-Year Price Target: $12.68
Wallbox N.V. (NYSE:WBX) is a Spain-based company that makes EV charging technologies. Wallbox N.V. (NYSE:WBX) has gained about 70% year to date.
In January, Wallbox N.V. (NYSE:WBX) announced the cost-cutting measures it’s taking to align itself with 2023 guidance. Wallbox N.V. (NYSE:WBX) said its measures will affect operating and personnel expenses and will impact approximately 15% of the workforce. The cost savings measures will result in annualized cost savings for 2023 of about €50 million.
During the fourth quarter, Wallbox N.V. (NYSE:WBX) added about €70 million in cash and availability under working capital lines.
As of the end of the third quarter of 2022, 4 hedge funds tracked by Insider Monkey had stakes in Wallbox N.V. (NYSE:WBX). The biggest hedge fund stakeholder of Wallbox N.V. (NYSE:WBX) was Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners which owns a stake worth over $15 million in the company. Another notable hedge fund stakeholder of Wallbox N.V. (NYSE:WBX) was Gavin Saitowitz and Cisco J. Del Valle’s Springbok Capital.
10. Gorilla Technology Group Inc. (NASDAQ:GRRR)
Number of Hedge Fund Holders: 4
Estimated One-Year Price Target: $13.00
Gorilla Technology Group Inc. (NASDAQ:GRRR) provides services related to video intelligence, Internet of Things (IoT) security, and edge content management hardware, software.
In November, Gorilla Technology Group Inc. (NASDAQ:GRRR) announced that it would buy UK-based SeeQuestor, a global provider of video analytics technology, for an undisclosed amount.
A total of 4 hedge funds tracked by Insider Monkey had stakes in Gorilla Technology Group Inc. (NASDAQ:GRRR) as of the end of the third quarter of 2022.
9. Kaltura, Inc. (NASDAQ:KLTR)
Number of Hedge Fund Holders: 7
Estimated One-Year Price Target: $3.39
New York-based software company Kaltura, Inc. (NASDAQ:KLTR) ranks 9th in our list of the most promising new technology stocks according to analysts. In November, Kaltura, Inc. (NASDAQ:KLTR) posted its third quarter results, which showed that Kaltura’s adjusted EPS in the period was -$0.09, in-line with estimates. Revenue in the quarter fell 4.4% on a YoY basis to total $41.1 million, missing estimates by $0.25 million.
As of the end of the third quarter of 2022, 7 hedge funds had stakes in Kaltura, Inc. (NASDAQ:KLTR). The total worth of these stakes was $1.2 million.
8. Pagaya Technologies Ltd. (NASDAQ:PGY)
Number of Hedge Fund Holders: 11
Estimated One-Year Price Target: $2.09
Financial technology company Pagaya Technologies Ltd. (NASDAQ:PGY) is based in Israel. Pagaya Technologies Ltd. (NASDAQ:PGY) ranks 8th in our list of most promising new technology stocks according to analysts. Recently, Pagaya Technologies Ltd. (NASDAQ:PGY) came into the limelight after investment firm Canaccord analyst Joseph Vafi upgraded the stock to Buy from Hold.
The analyst said that Pagaya Technologies Ltd. (NASDAQ:PGY) could gain if the company sticks to its “current prudent path to growth during this time of uncertainty.”
Pagaya Technologies Ltd. (NASDAQ:PGY) recently posted strong Q4 results and gave solid guidance. In the last quarter of 2022, Pagaya Technologies Ltd. (NASDAQ:PGY)’s adjusted EPS came in at -$0.01, beating estimates by $0.02. Revenue in the quarter jumped about 25% on a YoY basis to reach $192.9 million. For 2023, Pagaya Technologies Ltd. (NASDAQ:PGY) expects its revenue to come in the range of $775 million and $825 million, much better than the consensus estimate of $767.90 million.
7. Rumble Inc. (NASDAQ:RUM)
Number of Hedge Fund Holders: 12
Estimated One-Year Price Target: $15.00
Florida-based Rumble Inc. (NASDAQ:RUM) operates video sharing platforms. In November, Rumble Inc. (NASDAQ:RUM) posted strong Q3 results. Revenue in the period jumped a whopping 430% on a YoY basis to reach $10.98 million, beating estimates by $4.84 million. GAAP EPS in the period came in at -$0.01, beating estimates by $0.01.
As of the end of the third quarter of 2022, 12 hedge funds reported owning shares of Rumble Inc. (NASDAQ:RUM). The total value of these stakes was $38 million.
In January, Rumble Inc. (NASDAQ:RUM) announced to expand its partnership with Power Slap, the world’s premier slap fighting organization. Rumble Inc. (NASDAQ:RUM) will become Power Slap’s Official Digital Platform for the start of its flagship television program Power Slap: Road to the Title.
6. Expensify, Inc. (NASDAQ:EXFY)
Number of Hedge Fund Holders: 13
Estimated One-Year Price Target: $15.22
Cloud-based expense management software company Expensify, Inc. (NASDAQ:EXFY) shares look promising based on their one-year price target set by analysts.
In November, Expensify, Inc. (NASDAQ:EXFY) announced that it had purchased 599,080 shares of its common stock on the open market. This brought the total amount spent by Expensify, Inc. (NASDAQ:EXFY) to reduce its share count to $10 million year to date through November 29.
During the same month Expensify, Inc. (NASDAQ:EXFY) posted its third quarter earnings report that disappointed investors. Its GAAP EPS in the period came in at -$0.10, missing estimates by $0.03. Revenue in the period gained about 13.6% YoY to reach $42.5 million, missing estimates by $3.44 million. Non-GAAP net income in the period came in at $3.44 million.
5. Full Truck Alliance Co. Ltd. (NYSE:YMM)
Number of Hedge Fund Holders: 17
Estimated One-Year Price Target: $11.97
Full Truck Alliance Co. Ltd. (NYSE:YMM) operates a digital freight platform. According to reports published in December, the China-based company called off its plans for a Hong Kong listing. In November, Full Truck Alliance Co. Ltd. (NYSE:YMM) posted its third-quarter results. Adjusted EPADS in the period came in at $0.07, beating estimates by $0.04. Revenue in the quarter jumped about 32% on a YoY basis to reach $254.2 million, beating estimates by $10.9 million. Full Truck Alliance Co. Ltd. (NYSE:YMM) said that its Gross Transaction Value in the September quarter increased by about 3.5% YoY to reach $9.8 billion.
As of the end of the third quarter of 2022, 17 hedge funds out of the 920 funds tracked by Insider Monkey reported having stakes in Full Truck Alliance Co. Ltd. (NYSE:YMM). The total value of these stakes was over $454 million. The biggest stakeholder of Full Truck Alliance Co. Ltd. (NYSE:YMM) during this period was Thomas Steyer’s Farallon Capital with a $296 million stake.
4. Aurora Innovation, Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 22
Estimated One-Year Price Target: $4.46
Autonomous driving technology company Aurora Innovation, Inc. (NASDAQ:AUR) ranks 4th in our list of the most promising new technology stocks according to analysts. The Pennsylvania-based company shares have gained about 55% year to date through February 20. Earlier this month Aurora Innovation, Inc. (NASDAQ:AUR) posted its full-year 2022 and Q4 results. GAAP EPS in the quarter came in at -$0.25.
Aurora Innovation, Inc. (NASDAQ:AUR) is one of those low-cost stocks that can grow big and reward long-term investors. However, given the current market situation, the rewards might take some time to realize. Aurora Innovation, which went public back in 2021, expects to keep losing money until 2027 as it invests in its self-driving technologies for trucks and cars. According to The Verge, Aurora Innovation, Inc. (NASDAQ:AUR) has plans to sell its hardware and software to other companies instead of maintaining its own vehicle fleet.
3. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 24
Estimated One-Year Price Target: $23.23
AppLovin Corporation (NASDAQ:APP) is known for its platform for mobile app developers. AppLovin Corporation (NASDAQ:APP) recently jumped after the company posted its fourth quarter results and gave a strong Q1 guidance. While revenue in the fourth quarter fell 11.4% on a YoY basis, it still beat estimates by $11.83 million. For the first quarter of 2023, AppLovin Corporation (NASDAQ:APP) expects its revenue to come in the range of $685 million to $705 million, versus the consensus estimate of $677.13 million.
In November, Jefferies analyst Brent Thill started covering AppLovin Corporation (NASDAQ:APP) with a Hold rating. The analyst said that he doesn’t think mobile advertising is “broken long-term” after platform policy changes.
Vulcan Value Partners made the following comment about AppLovin Corporation (NASDAQ:APP) in its Q3 2022 investor letter:
“We fully exited AppLovin Corporation (NASDAQ:APP). AppLovin was a mistake that we were still trading and therefore did not discuss in our second quarter letter. AppLovin owns a portfolio of over 300 mobile games and operates an advertising platform for third party gaming apps. Our investment case hinged on the company’s advertising platform data from the owned games business which we believed was its key competitive advantage. Through our recent research, we concluded that management is likely planning to restructure or sell all or some of the owned games business. In addition, while we thought AppLovin’s second quarter results were good, with revenue up 16%, the company lowered guidance on its long-term organic growth opportunity. To achieve their long-term plans, the company is relying on new initiatives which we would categorize as early stage. As our understanding of a company’s competitive advantage changes, we reevaluate the business to determine how this affects our investment thesis. For AppLovin, we determined that the company’s competitive advantage was not as strong as we once thought, and we followed our discipline by selling AppLovin and redeploying capital into companies that we believe have more stable values and attractive margins of safety.”
2. Vimeo, Inc. (NASDAQ:VMEO)
Number of Hedge Fund Holders: 30
Estimated One-Year Price Target: $7.25
Video platform Vimeo, Inc. (NASDAQ:VMEO) ranks 2nd in our list of promising new tech stocks according to analysts. Year to date Vimeo, Inc. (NASDAQ:VMEO) has gained about 18% through February 20.
In January, Vimeo, Inc. (NASDAQ:VMEO) announced that it will lay off 11% of its global workforce to “become sustainably profitable.” Vimeo, Inc. (NASDAQ:VMEO) said that almost all departments will be affected, with the biggest layoffs coming from sales and research teams. Vimeo, Inc. (NASDAQ:VMEO)’s CEO said Vimeo was entering “2023 with a more focused strategy to simplify Vimeo, and ultimately, our team size and composition needs to reflect that focus.”
Of the 920 hedge funds tracked by Insider Monkey, 30 hedge funds reported owning stakes in Vimeo, Inc. (NASDAQ:VMEO). The total value of these stakes was about $138 million. The biggest stakeholder of Vimeo, Inc. (NASDAQ:VMEO) during this period was Mason Hawkins’ Southeastern Asset Management which had a $45.2 million stake in the company.
Longleaf Partners Small-Cap Fund made the following comment about Vimeo, Inc. (NASDAQ:VMEO) in its Q4 2022 investor letter:
“Vimeo, Inc. (NASDAQ:VMEO) and Oscar – Digital software company Vimeo and US health insurance and software platform Oscar Health were both unduly punished this year alongside most tech-related businesses. We were too early at both companies, and our partners have not yet gone on offense to the degree we initially expected. Oscar grew too much, while Vimeo didn’t grow enough. Both still have key differentiating factors and the ability to control their own destiny, but we have been hesitant to take them back to full positions as our initial thesis has yet to play out. We are engaged with management teams at both companies to encourage proactive steps to close the value gap.”
1. Marqeta, Inc. (NASDAQ:MQ)
Number of Hedge Fund Holders: 33
Estimated One-Year Price Target: $9.35
Payments solutions company Marqeta, Inc. (NASDAQ:MQ) ranks 1st in our list of 12 most promising new technology stocks according to analysts. During the third quarter Marqeta, Inc. (NASDAQ:MQ)’s GAAP EPS came in at -$0.10, missing estimates by $0.01. Revenue in the quarter jumped about 46% YoY to reach $191.62 million, beating estimates by $10.72 million. Gross margin in the period jumped about 42% in the quarter. For the fourth quarter, Marqeta, Inc. (NASDAQ:MQ) was expecting net revenue growth of 29% to 31%, better than the consensus estimate of 22.91%.
Last month, Marqeta, Inc. (NASDAQ:MQ) announced that it agreed to buy credit card management platform Power Finance for $275 million.
A total of 33 hedge funds tracked by Insider Monkey as of the end of the third quarter of 2022 reported owning shares of Marqeta, Inc. (NASDAQ:MQ). The total value of these stakes was $656 million.
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Disclosure: None. 12 Most Promising New Technology Stocks According to Analysts is originally published on Insider Monkey.
