5 Best Software Stocks To Buy According To Hedge Funds

In this article, we will be taking a look at the 5 best software stocks to buy according to hedge funds. To read our detailed analysis of the tech sector, you can go directly to see 14 Best Software Stocks To Buy According To Hedge Funds.

5. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 91

Based in Santa Clara, California, ServiceNow, Inc. (NYSE:NOW) is a systems software company. It provides end-to-end intelligent workflow automation platform solutions for digital businesses.

ServiceNow, Inc. (NYSE:NOW) had 91 hedge funds long its stock in the fourth quarter, with a total stake value of $5.7 billion.

Citigroup’s Tyler Radke holds a Buy rating and an $896 price target on ServiceNow, Inc. (NYSE:NOW) as of January 26.

Aristotle Atlantic Partners, LLC mentioned ServiceNow, Inc. (NYSE:NOW) in its fourth-quarter 2023 investor letter:

“ServiceNow, Inc. (NYSE:NOW) contributed to portfolio performance during the fourth quarter, as investors focused on improving momentum across the NOW platform following strong third quarter results at the end of October. In addition, ServiceNow continues to announce new product enhancements to the platform to support artificial intelligence (AI) capabilities with early signs of customer adoption.”

4. Oracle Corporation (NASDAQ:ORCL)

Number of Hedge Fund Holders: 100

Oracle Corporation (NASDAQ:ORCL) is a systems software company based in Austin, Texas. It offers products and services addressing enterprise information technology environments worldwide.

Brent Bracelin at Piper Sandler maintained an Overweight rating on Oracle Corporation (NASDAQ:ORCL) alongside a $122 price target on January 2.

There were 100 hedge funds long Oracle Corporation (NASDAQ:ORCL) in the fourth quarter, with a total stake value of $6.4 billion.

Madison Investments mentioned Oracle Corporation (NASDAQ:ORCL) in its fourth-quarter 2023 investor letter:

“Oracle Corporation (NYSE:ORCL) reported a disappointing second quarter due to supply constraints. Cloud revenue was below expectations as Oracle made planning decisions to accommodate some large-scale Oracle Cloud Infrastructure (OCI) clients that take longer to bring online. We continue to believe that Oracle has a unique position in Generative AI workloads and continue to like its position and strategy.”

3. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 105

Adobe Inc. (NASDAQ:ADBE) is an application software company. It offers cloud-based products and services, among more.

We saw 105 hedge funds long Adobe Inc. (NASDAQ:ADBE) in the fourth quarter, with a total stake value of $8.9 billion.

On January 1, Brent Bracelin at Piper Sandler maintained an Overweight rating and a $705 price target on Adobe Inc. (NASDAQ:ADBE).

2. salesforce.com, inc. (NYSE:CRM)

Number of Hedge Fund Holders: 131

As of February 21, Parker Lane at Stifel holds a Buy rating and a $330 price target on salesforce.com, inc. (NYSE:CRM).

Based in San Francisco, California, salesforce.com, inc. (NYSE:CRM) is a provider of customer relationship management technology. It operates in the application software industry.

In total, 131 hedge funds were long salesforce.com, inc. (NYSE:CRM) in the fourth quarter, with a total stake value of $14.9 billion.

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 302

We saw 302 hedge funds long Microsoft Corporation (NASDAQ:MSFT) in the fourth quarter. Their total stake value was $87.3 billion.

Microsoft Corporation (NASDAQ:MSFT) is a systems software company. It is based in Redmond, Washington.

On January 9, Keith Bachman at BMO Capital maintained an Outperform rating and a $420 price target on Microsoft Corporation (NASDAQ:MSFT).

See also 12 Best Software Infrastructure Stocks to Buy and 12 Cheap Software Stocks to Buy According to Analysts.