5 Best SaaS Stocks to Buy According to Hedge Funds

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In this article, we will list the 5 Best SaaS Stocks to Buy According to Hedge Funds. Please visit 10 Best SaaS Stocks to Buy According to Hedge Funds if you’d like to see an extended list and the methodology behind it.

5. Cloudflare, Inc. (NYSE:NET)

Cloudflare, Inc. (NYSE:NET), with significant hedge fund interest, ranks among the 10 best SaaS stocks to buy according to hedge funds. As of Q1 2026, 84 hedge funds held bullish positions in the stock, representing $3.55 billion in aggregate value.

A close-up of a hand tapping away at a keyboard, using the company’s software to carry out a transaction.

As Cloudflare, Inc. (NYSE:NET)’s role in AI-agent infrastructure continues to grow and its path toward long-term profitability targets accelerates, the stock retains analyst confidence.

On May 22, 2026, RBC Capital reiterated an “Outperform” rating and $240 price target on Cloudflare, Inc. (NYSE:NET), pointing to the company’s June 9 Analyst Day as a potential catalyst.

The firm said management is expected to focus on Cloudflare’s AI and agentic positioning, unit economics of its Acts, and the path to Rule of 50 economics. RBC also said Cloudflare appears ahead of schedule toward its prior $5 billion 2028 revenue target, with the company generating $2.17 billion in revenue in FY25, up roughly 29.94% year-over-year. The firm argued that existing cloud infrastructure was designed for the desktop and smartphone era and breaks under the demands of AI agents, a dynamic it believes positions Cloudflare, Inc. (NYSE:NET) well for what comes next.

That view aligns with a product announcement from May 19, 2026, in which Cloudflare, Inc. (NYSE:NET) said it had integrated with Anthropic’s Claude Managed Agents to provide a fast, isolated execution environment for autonomous code delivery.

The integration lets developers run their agent loop on the Anthropic platform while using Cloudflare to execute code, secure connections, and handle custom tool calls. Cloudflare said builders can scale agent workflows globally while controlling access to private backends. Anthropic described the setup as decoupling the brain from the hands, with the core agent loop running on Anthropic’s side and the execution infrastructure running on Cloudflare, Inc. (NYSE:NET).

Cloudflare, Inc. (NYSE:NET) is a leading connectivity cloud company that specializes in improving the security, performance, and reliability of websites and applications.

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