In this piece, we will take a look at the five best affordable tech stocks to invest in now. For details about the industry and more stocks, take a look at 10 Best Affordable Tech Stocks to Invest In Now.
5. GoPro, Inc. (NASDAQ:GPRO)
Number of Hedge Fund Holders: 26
Share Price as of August 12, 2022: $6.71
GoPro, Inc. (NASDAQ:GPRO) is an American consumer electronics firm that is headquartered in San Mateo, California. The company designs and sells gadgets such as cameras, wearables, and mountable accessories alongside a subscription service for cloud storage and video editing.
Even though its shares have been facing a bloodbath on the stock market, GoPro, Inc. (NASDAQ:GPRO) remains a key player in a niche that it helped popularize. The firm has slowly increased the prices of its products and now more than 90% of its sales are from products priced above $300. Additionally, its online retailing service took off during the coronavirus pandemic, and there are high chances that the demand for its products will rise too as the world goes back to pre-pandemic life. Finally, owing to its subscription service and other factors, the company’s margins are at an all time high of 42%.
Insider Monkey’s Q1 2022 survey of 912 hedge funds outlined that 26 had invested in the company.
GoPro, Inc. (NASDAQ:GPRO)’s largest investor is Michael Zimmerman’s Prentice Capital Management which owns 7.5 million shares that are worth $64 million.
4. Pinduoduo Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders: 36
Share Price as of August 12, 2022: $49.62
Pinduoduo Inc. (NASDAQ:PDD) provides an electronic commerce platform and is headquartered in Shanghai, the People’s Republic of China. Its platform allows customers to buy a wide variety of products such as food and beverages, vegetables, health, cosmetics, and apparel.
China’s easing lockdowns make Pinduoduo Inc. (NASDAQ:PDD) a very attractive stock, and estimates peg it at trading at 20x of its GAAP operating profits. It has 700 million monthly active users on its platforms and allows unique features such as customers discussing products in groups before buying – and even buying collectively to reduce prices. Finally, the company wildly reversed its non-GAAP operating loss of $500 million last year to a profit of $580 million this year.
Goldman Sachs kept a $95 price target for Pinduoduo Inc. (NASDAQ:PDD) in July 2022, stating that the company has high penetration and active buyers. As the first quarter of this year ended, 36 of the 912 hedge funds polled by Insider Monkey had invested in the company.
Pinduoduo Inc. (NASDAQ:PDD)’s notable investor is Ray Dalio’s Bridgewater Associates which owns 4.9 million shares that are worth $297 million.
Tao Value mentioned the company in its Q4 2021 investor letter. Here is what the fund said:
“On the detracting side, one of our largest detractors includes Pinduoduo (ticker: PDD). Pinduoduo (PDD) reported the second consecutive GAAP profit quarter yet missed on the revenue due to nation-wide consumption weakness & scaled back Sales & Marketing efforts. Market disliked it and the stock price plunged on the earnings. In my opinion, the accounting profits proved the original thesis of using S&M to acquire users and using great shopping experience to keep them. After realizing the first growth curve, Pinduoduo now shifted its focus & investment to agriculture. It is still very early, but the reduced size due to price drop warrants a position to watch and continue grow with such a team with strong culture.”
3. SentinelOne, Inc. (NYSE:S)
Number of Hedge Fund Holders: 38
Share Price as of August 12, 2022: $27.26
SentinelOne, Inc. (NYSE:S) is a cybersecurity services provider headquartered in Mountain View, California, United States. The company offers multiple platforms to its customers that allow them to detect and respond to threats through artificial intelligence and cloud workloads.
SentinelOne, Inc. (NYSE:S) is one of the fastest growing cybersecurity services providers in the world, with this fact reflected in a 28x price to annualized sales ratio. Should the company maintain a 50% growth rate (compared to estimates of an 80% growth), then the P/S will increase to 30x – making the stock suitable for the long term investor. To lend credence to these estimates, SentinelOne, Inc. (NYSE:S)’s latest quarter revealed that it had grown its customers by 70% and had a net retention rate of 129%.
Insider Monkey’s Q1 2022 912 hedge fund survey revealed that 38 had invested in SentinelOne, Inc. (NYSE:S).
Dan Loeb’s Third Point is SentinelOne, Inc. (NYSE:S)’s largest investor through a $1 billion stake that comes via 26 million shares.
2. Dropbox, Inc. (NASDAQ:DBX)
Number of Hedge Fund Holders: 44
Share Price as of August 12, 2022: $24.56
Dropbox, Inc. (NASDAQ:DBX) provides a content collaboration platform that lets its users all over the globe work on collaborative projects across a wide variety of industries such as technology, media, education, and industrials. It is based in San Francisco, California, United States.
A key feature of Dropbox, Inc. (NASDAQ:DBX) is the fact that it has grown its revenue at a CAGR of 19.67% over the past five years. Additionally, its total number of paying users has increased consistently for the past twelve quarters. Being a software firm allows it to post hefty 70% gross margins, and the company has more than tripled its free cash flow over the past five years – unlike several others in its sector.
As this year’s March quarter ended, 44 out of the 912 hedge funds surveyed by Insider Monkey had invested in Dropbox, Inc. (NASDAQ:DBX).
Dropbox, Inc. (NASDAQ:DBX)’s largest investor is Seth Klarman’s Baupost Group which owns 10 million shares that are worth $245 million.
1. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 63
Share Price as of August 12, 2022: $37.14
Corning Incorporated (NYSE:GLW) is an American company that provides products for a wide variety of technology industries. These include displays for smartphones, glass cables for fiber optic networks, and substrates for the semiconductor industry. The firm is headquartered in Corning, New York.
Corning Incorporated (NYSE:GLW) is poised to massively benefit from the rollout of fifth generation (5G) communications industry and the fiber optic industry. The latter market is slated to grow at a 10% CAGR beyond 2030, providing the company with a steady stream of revenue. Prices per fiber kilometer are at a record high, and the company is the world’s largest provider of fiber optic cables with a 16% market share.
Northland raised Corning Incorporated (NYSE:GLW)’s share price target to $55 from $50 in July 2022, sharing that the fact that communications is decoupling from technology is a positive development for the company. 63 out of the 912 hedge funds polled by Insider Monkey during Q1 2022 had held a stake in the company.
Corning Incorporated (NYSE:GLW)’s largest investor is Jim Simons’s Renaissance Technologies which owns 2.4 million shares that are worth $90 million.
Disclosure: None. You can also take a look at 10 Dividend Stocks to Buy According to John Allison’s Unio Capital and 10 Best Data Center Stocks To Invest In.
