5 Best Stocks Under $20

2. Latch, Inc. (NASDAQ:LTCH)

Stock Price as of May 25: $2.14

Stock Price as of November 17: $1.14

Number of Hedge Fund Holders: 21

Latch, Inc. (NASDAQ:LTCH) is a New York-based corporation that provides a complete platform of products, software, and services like connectivity, sensors, guests, and delivery management, along with personalization for a complete building.

Although the construction of new buildings may come under pressure due to the rising interest rate, Latch, Inc. (NASDAQ:LTCH) has already prepared for this contingency by reducing its workforce by 28%. Stephen Sheldon at William Blair sees this development as a net positive and highlighted that the Latch, Inc.’s (NASDAQ:LTCH) market capitalization is now just slightly above its net cash position. The announcement related to the decline in the workforce would help the company sustain its operations and lower its cash burn. On May 23, Sheldon gave Latch, Inc. (NASDAQ:LTCH) stock an Outperform rating.

Latch, Inc. (NASDAQ:LTCH) also generates revenue by selling hardware and charging a monthly subscription fee for its software and services. This reflects a sustainable revenue model as the customer would be bound by the significant outlay made for the hardware.