5 Best Tech Stocks to Buy Now According to Totem Point Management

2. Bill.com Holdings, Inc. (NYSE:BILL)

Totem Point Management’s Stake Value: $14,880,000

Percentage of Totem Point Management’s 13F Portfolio: 9.68%

Number of Hedge Fund Holders: 65

Bill.com Holdings, Inc. (NYSE:BILL) ranks second on the list, as Totem Point owns 55,742 BILL shares as of September 30 valued at $14.88 million. Despite unloading 34% of its holding during Q3, Bill.com now accounts for 9.69% of the value of Totem Point’s 13F portfolio compared to 7.84% a quarter earlier thanks to shares gaining a hefty 45% during Q3.

Bill.com Holdings, Inc. (NYSE:BILL)’s shares hit a recent rough patch, however, tumbling by nearly 25% in January as growth stocks were widely sold off by investors. Shares have taken a sharp turn back up in February after the company’s cloud-based business finance software propelled it to enormous 190% revenue growth during the company’s latest quarter, outpacing the already impressive 150% growth from a quarter earlier. After dropping to as low as 35x, its price-to-sales ratio has rebounded to once again sit above 50x.

As with many growth stocks, Bill.com Holdings, Inc. (NYSE:BILL) is not yet profitable, which is likely to leave its shares at the mercy of similar market dynamics to what they experienced in January as overall economic growth slows and interest rates rise.

Alger, an investment management firm, published its “Alger Mid Cap Focus Fund” fourth quarter 2021 investor letter and mentioned Bill.com Holdings, Inc. (NYSE:BILL). Here‘s what the fund said:

“Bill.com Holdings, Inc., was among the top detractors from performance. Bill.com provides cloud-based software solutions that simplify, digitize, and automate complex back-office financial operations for small and medium size businesses. Its software helps customers to generate and process invoices, streamline approvals, send and receive payments, synchronizing data with their accounting system and manage their cash.”