In this article, we will list the 5 Best Tech Stocks Under $5 to Buy. Please visit 10 Best Tech Stocks Under $5 to Buy if you would like to see the extended list and the methodology behind it.
5. Blend Labs, Inc. (NYSE:BLND)
Number of Hedge Fund Holders: 27
Blend Labs, Inc. (NYSE:BLND) is one of the best tech stocks under $5 to buy. Blend Labs, Inc. (NYSE:BLND) has received several rating updates following the release of its financial results for fiscal Q1 2026. On May 15, Canaccord cut the price target on Blend Labs, Inc. (NYSE:BLND) to $4.50 from $5.25, maintaining a Buy rating on the shares and stating that the company is continuing to do all it can in terms of profitability, growth, and product set expansion. It added that Blend Labs, Inc. (NYSE:BLND) is doing this despite the persistently tough mortgage macro.
Blend Labs, Inc. (NYSE:BLND) also received a rating update from Citizens on May 8. The firm cut the price target on the stock to $4 from $5, maintaining an Outperform rating on the shares and telling investors in a research note that the company reported solid fiscal Q1 results. It added that although the guidance for fiscal Q2 was disappointing, Citizens continues to like Blend Labs, Inc. (NYSE:BLND) as Autopilot appears to have product market fit and a real path to monetization with 65 lenders in the free beta ending June 30.
Blend Labs, Inc. (NYSE:BLND) is a digital orientation platform that serves credit unions, banks, and mortgage lenders. Its operations are divided into the Blend Platform and Title segments.
4. Verra Mobility Corporation (NASDAQ:VRRM)
Number of Hedge Fund Holders: 31
Verra Mobility Corporation (NASDAQ:VRRM) is one of the best tech stocks under $5 to buy. UBS downgraded Verra Mobility Corporation (NASDAQ:VRRM) to Neutral from Buy on May 28, bringing the price target on the stock down to $4 from $23. It attributed the downgrade to the “material reduction” in the company’s revenue and profit outlook after the Avis Budget contract termination, saying that it now sees increased uncertainty around Verra Mobility Corporation’s (NASDAQ:VRRM) other major contract renewals in its commercial service segment in 2027. UBS is cautious on the company’s outlook for 2028 and beyond due to the uncertainty with the upcoming contract renewals.
Verra Mobility Corporation (NASDAQ:VRRM) also received a rating update from Morgan Stanley on May 27. The firm cut the price target on the stock to $4 from $15 on May 27 and maintained an Equal Weight rating on the shares after the company’s announcement that it received a termination notice from Avis Budget. The firm told investors that the Avis termination “meaningfully weakens confidence” in Verra Mobility Corporation’s (NASDAQ:VRRM) Commercial Services moat and clouds the segment’s long-term growth outlook. However, Morgan Stanley also believes that the stock largely reflects this uncertainty, given current trading levels.
Verra Mobility Corporation (NASDAQ:VRRM) provides smart mobility technology solutions. The company’s operations are divided into the following segments: Government Solutions, Commercial Services, and Parking Solutions.
3. PowerFleet, Inc. (NASDAQ:AIOT)
Number of Hedge Fund Holders: 32
PowerFleet, Inc. (NASDAQ:AIOT) is one of the best tech stocks under $5 to buy. PowerFleet, Inc. (NASDAQ:AIOT) announced on May 27 a strategic partnership with Accenture, as part of which Accenture selected Powerfleet as a strategic safety solutions partner, promoting and recommending its end-to-end portfolio. Under the terms of the partnership, Powerfleet would be integrated into Accenture’s Innovation and Technology Centre in Milan, which is a flagship facility.
Management further stated that through the collaboration, customers would benefit from expert-led engagements, immersive demonstrations, and tailored solutions addressing the “evolving safety and compliance challenges in increasingly complex environments on-site and on-road”. In addition, Powerfleet’s technologies would be presented as a core component of Accenture’s safety and digital transformation offerings, allowing organizations to explore real-world applications of risk reduction, connected safety, and operational efficiency. Steve Towe, Chief Executive Officer at Powerfleet, stated that the integration of their solutions within Accenture’s innovation ecosystem allows accelerated access to smarter, safer operations for enterprises across Central Europe and beyond.
PowerFleet, Inc. (NASDAQ:AIOT) provides fleet management solutions for industrial, logistics, and vehicles. Its offerings include wireless Internet of Things and machine-to-machine solutions for securing, tracking, controlling, and managing enterprise assets. The company operates through the following geographical segments: the United States, Israel, and Other.
2. ZoomInfo Technologies Inc. (NASDAQ:GTM)
Number of Hedge Fund Holders: 47
ZoomInfo Technologies Inc. (NASDAQ:GTM) is one of the best tech stocks under $5 to buy. On May 21, Jefferies downgraded ZoomInfo Technologies Inc. (NASDAQ:GTM) to Hold from Buy, bringing the price target on the stock down to $4 from $12 and stating that it “materially reduced” the company’s revenue growth for 2026 and does not expect conditions to improve in 2027.
Jefferies also told investors in a research note that the company’s client demand has been weak for two years, and is beginning to change client behavior with AI beginning to penetrate enterprise workflows, which includes negatively impacting purchasing decisions. The firm believes that clients have started to prefer building their own workflows and analytics around ZoomInfo Technologies Inc.’s (NASDAQ:GTM) data instead of subscribing to the company’s software, and it does not see a catalyst to move shares higher.
ZoomInfo Technologies Inc. (NASDAQ:GTM) also received a rating update from Morgan Stanley on May 19, with the firm cutting the price target on the stock down to $5 from $9 while maintaining an Equal Weight rating on the shares.
ZoomInfo Technologies Inc. (NASDAQ:GTM) provides a cloud-based platform offering information on professionals and organizations for sales and marketing teams. The company’s offerings include sales leadership, sales development, marketing, demand generation, sales and marketing operations, and recruiting.
1. Grab Holdings Limited (NASDAQ:GRAB)
Number of Hedge Fund Holders: 50
Grab Holdings Limited (NASDAQ:GRAB) is one of the best tech stocks under $5 to buy. BofA cut the price target on Grab Holdings Limited (NASDAQ:GRAB) to $5.20 from $6.20 on May 5, maintaining a Buy rating on the shares. The firm told investors that the company’s fiscal Q1 was “largely in-line”, adding that it sees “steady momentum” heading into fiscal Q2. Grab Holdings Limited (NASDAQ:GRAB) also received a rating update from Morgan Stanley, with the firm lowering the price target on the stock to $5.90 from $6.40 while maintaining an Overweight rating on the shares.
In its financial results for fiscal Q1 2026, Grab Holdings Limited (NASDAQ:GRAB) reported that revenue grew 24% year-over-year to $955 million. On-Demand GMV for the quarter also rose 24% year-over-year to $6.1 billion, while profit for the period was $120 million. Management further reported that adjusted EBITDA grew 46% year-over-year to $154 million in fiscal Q1 2026, with adjusted free cash flow of $489 million on a trailing twelve-month basis.
Grab Holdings Limited (NASDAQ:GRAB) provides millions of consumers access to its merchant and driver partners for food delivery, ride or taxi hailing, package delivery, payment for online purchases, and services such as telemedicine, lending, and insurance through its application.
While we acknowledge the potential of GRAB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GRAB and that has 100x upside potential, check out our report about the cheapest AI stock.
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