In this article, we discuss the 5 best new tech stocks to buy now. If you want to read our detailed analysis of the tech industry, go directly to the 15 Best New Tech Stocks to Buy Now.
5. Confluent, Inc. (NASDAQ: CFLT)
IPO Date: June 25, 2021
No. of Hedge Funds Having Stakes in the Company: N/A
Confluent, Inc. (NASDAQ: CFLT) is a Silicon Valley software company, founded in 2014. The company offers data infrastructure which is designed to connect all technology-related aspects of companies, including applications, systems, data layers, etc. It also offers software-centric services and solutions to consumers. Confluent, Inc. (NASDAQ: CFLT) raised $828 million in its IPO on June 25, 2021.
In Q2 2021, Confluent, Inc. (NASDAQ: CFLT) reported an EPS of -$0.31, beating the consensus by $0.08. The consolidated revenue presented a 64% year-over-year growth at $88.3 million, versus estimates of $76.8 million. The company’s cloud revenue accounted for $20 million of the gross revenue.
In July, UBS initiated its coverage on Confluent, Inc. (NASDAQ: CFLT) with a ‘Buy’ rating and a $46 price target. Similarly, the company was also lauded by Citigroup due to its solid earnings in its first quarter as a public company. The investment bank raised its price target on Confluent, Inc. (NASDAQ: CFLT) to $51 from $45.
4. UiPath Inc. (NYSE: PATH)
IPO Date: April 21, 2021
No. of Hedge Funds Having Stakes in the Company: N/A
UiPath Inc. (NYSE: PATH) is a global enterprise automation software company that helps other companies to automate their business processes. The company offers an end-to-end platform for automation and combines the robotic process automation (RPA) solution. As of April 2021, UiPath Inc. (NYSE: PATH) has over 8,500 customers located worldwide.
In the fiscal quarter of 2022, UiPath Inc. (NYSE: PATH) reported revenue of $186.2 million, up 65% from the prior-year quarter. Annual recurring revenue also increased 64% at $652.6 million. In the first quarter, UiPath Inc. (NYSE: PATH) launched a Tableau Activity in partnership with Tableau Software for customers to use the data produced by RPA. For FY22, the company expects revenue in the range of $180 million to $185 million.
In June, BMO Capital raised its price target on UiPath Inc. (NYSE: PATH) to $85, with a ‘Market Perform’ rating on the shares. The company’s ARR growth was appreciated by Truist, which kept a ‘Buy’ rating on the stock in June.
ClearBridge Investments recently released its second-quarter 2021 investor letter and mentioned UiPath Inc. (NYSE: PATH) in it. Here is what the firm has to say:
“We participated in the IPO of UiPath, a developer of software for robotic process automation that uses AI, natural language processing and design to streamline complex processes across a variety of technology environments. The company is an industry leader with a superior solution for leveraging software to optimize workloads. Organizations around the world are beginning to understand the power of automation, with momentum picking up toward fully automating business processes, a $60 billion market today that could grow to $200 billion or more by 2030. UiPath has a unique pricing model, broad partner ecosystem and thoughtful management team supporting one of the strongest growth profiles in technology. Risks we are watching include a partial cloud transition ahead and increased competition from larger software platforms over time.”
3. Coinbase Global, Inc. (NASDAQ: COIN)
IPO Date: April 14, 2021
No. of Hedge Funds Having Stakes in the Company: N/A
Coinbase Global, Inc. (NASDAQ: COIN) is an easy-to-use cryptocurrency exchange platform. It offers a fair, accessible, and efficient financial system to its users. The company has over 56 million verified users in more than 100 countries. Coinbase Global, Inc. (NASDAQ: COIN) was founded in 2012.
In Q1 2021, Coinbase Global, Inc. (NASDAQ: COIN) generated $1.8 billion in revenue, up massively from $191 million during the same period last year. Transaction revenue amounted to $1.5 billion of the gross revenue. In the first quarter, the company also launched Coinbase Cloud as a part of its cloud-based crypto computing services.
In July Oppenheimer raised its price target on Coinbase Global, Inc. (NASDAQ: COIN) to $444 with an ‘Outperform’ rating. The firm expects strong results from the company in the second quarter as well.
Coinbase Global, Inc. (NASDAQ: COIN) went public on April 14 with shares gaining as much as 71%, up from its reference price of $250.
2. Coupang, Inc. (NYSE: CPNG)
IPO Date: March 11, 2021
No. of Hedge Funds Having Stakes in the Company: 40
Coupang, Inc. (NYSE: CPNG) is a South Korean e-commerce company with headquarters in Seoul, South Korea. Coupang, Inc. (NYSE: CPNG) holds nearly 24% of South Korea’s e-commerce market.
In Q1 2021, Coupang, Inc. (NYSE: CPNG) generated revenue of $4.21 billion, presenting a 74.7% year-over-year growth. Total Active Customers also grew by 21% from the prior-year quarter and reached 16 million. Coupang, Inc. (NYSE: CPNG) has expanded its operations in Malaysia and already operated in Japan and Tokyo. In May, Bill and Melinda Gates Foundation started building its position in Coupang, Inc. (NYSE: CPNG), with shares worth $220 million. In July, CLSA initiated its coverage on Coupang, Inc. (NYSE: CPNG) with an ‘Outperform’ rating and a $46 price target.
As of Q1 2021, 40 hedge funds tracked by Insider Monkey have positions in Coupang, Inc. (NYSE: CPNG), worth over $21.6 billion.
1. SentinelOne, Inc. (NYSE: S)
IPO Date: June 30, 2021
No. of Hedge Funds Having Stakes in the Company: N/A
SentinelOne, Inc. (NYSE: S) is an American cybersecurity company that performs with autonomous technology and is based in California, U.S. The company’s Singularity Platform is used to defend against cyberattacks and performs at a faster pace. SentinelOne, Inc. (NYSE: S) launched its IPO on June 30 and raised $1.2 billion, one of the largest IPOs of the cybersecurity industry.
In 2020, SentinelOne, Inc. (NYSE: S) reported earnings of over $93 million, up from $46.4 million in 2019. The company’s customer base grew by 62% in 2020. In the first quarter of 2021, SentinelOne, Inc. (NYSE: S) presented a 108% year-over-year revenue growth at $37.4 million. This revenue growth was appreciated by BofA, which lifted its price target on SentinelOne, Inc. (NYSE: S) to $62, with a ‘Buy’ rating on the shares in July. Morgan Stanley also suggested the rapid growth in ARR over the next years and keeps an ‘Overweight’ rating on the stock, with a $56 price target. The stock has gained 18.42% since its IPO.
You can also take a look at 10 Best Tech Stocks To Buy Now According To Billionaire Laffont and 10 Best Biotech Stocks Under $6 in 2021.
