5 Best Cheap Tech Stocks to Buy According to Cathie Wood

2. Palantir Technologies Inc. (NYSE: PLTR)

Number of hedge fund holders: 32  

Palantir Technologies Inc. (NYSE: PLTR) is a Colorado-based company that focuses on big data analytics. It was founded in 2003 and is ranked second on our list of 10 best cheap tech stocks to buy according to Cathie Wood. ARK Investment holds more than 18.6 million shares in the company worth over $433 million, representing 0.86% of their portfolio. Palantir stock has returned close to 4% to investors over the past week. One of the famous products of the firm is Palantir Gotham, a software for government operatives in the defense and intelligence sectors.

In earnings results for the first quarter of 2021, posted on May 11, Palantir Technologies Inc. (NYSE: PLTR) reported earnings per share of $0.04 and a revenue of $341 million. For the second quarter of the year, the firm projects $360 million in revenue. 

At the end of the first quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Palantir Technologies Inc. (NYSE: PLTR), down from 38 in the preceding quarter worth $1.9 billion. 

In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Palantir Technologies Inc. (NYSE: PLTR) was one of them. Here is what the fund said:

“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companies to make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”