In this article, we discuss the 5 most successful tech IPOs of 2021. If you want to read our detailed analysis of these stocks, go directly to the 10 Most Successful Tech IPOs of 2021.
5. Monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 17
Gain in 2021: 71%
Monday.com Ltd. (NASDAQ:MNDY) is a systems software firm. It operates in the high growth cloud market and is undervalued compared to other tech stocks given that it recently beat market estimates on earnings and also has high levels of customer satisfaction. This is because the company offers businesses the chance to build customized software applications using the tools provided by Monday.com Ltd. (NASDAQ:MNDY). The total addressable market for Monday.com Ltd. (NASDAQ:MNDY) is 200 times present revenues.
Canaccord analyst David Hynes recently reiterated a Buy rating on Monday.com Ltd. (NASDAQ:MNDY) stock and raised the price target to $430 from $350, noting the stock was one that “growth investors should continue to own” despite a pullback in share prices.
At the end of the third quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $495 million in Monday.com Ltd. (NASDAQ:MNDY), down from 19 in the preceding quarter worth $180 million.
4. DigitalOcean Holdings, Inc. (NYSE:DOCN)
Number of Hedge Fund Holders: 27
Gain in 2021: 88%
DigitalOcean Holdings, Inc. (NYSE:DOCN) owns and runs a cloud computing platform. On November 12, investment advisory William Blair initiated coverage of DigitalOcean Holdings, Inc. (NYSE:DOCN) stock with an Outperform rating and no price target. Analyst James Breen, in an investor note, underlined that the firm was marketing a differentiated platform for the underserved segment of the cloud sector and was operating in a large and growing market.
DigitalOcean Holdings, Inc. (NYSE:DOCN) posted earnings for the third quarter on November 4, reporting earnings per share of $0.12, beating estimates by $0.05. The revenue over the period was $111 million, up 37% year-on-year.
At the end of the third quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $758 million in DigitalOcean Holdings, Inc. (NYSE:DOCN), up from 16 in the preceding quarter worth $219 million.
3. HashiCorp, Inc. (NASDAQ:HCP)
Number of Hedge Fund Holders: N/A
Gain in 2021: 7%
HashiCorp, Inc. (NASDAQ:HCP) provides infrastructure automation solutions. Some of the most famous products of the firm include Terraform, an open source infrastructure as code software tool, Vault, a password management helper, and Nomad, a container-management tool. HashiCorp, Inc. (NASDAQ:HCP) aims to provide consistent workflows and secure solutions for public and private cloud environments.
HashiCorp, Inc. (NASDAQ:HCP) debuted on the market in December 2021 and fetched a valuation of around $14 billion. On the first day of trading, the share price of HashiCorp, Inc. (NASDAQ:HCP) jumped nearly 10% from the IPO price. However, the stock has pulled back in recent weeks amid a larger lull around growth stocks.
Citi analyst Fatima Boolani recently initiated coverage of HashiCorp, Inc. (NASDAQ:HCP) stock with a Neutral rating and a price target of $100.
2. Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: N/A
Gain in 2021: 24%
Informatica Inc. (NYSE:INFA) owns and runs an artificial intelligence platform for management of data at enterprise level. Informatica Inc. (NYSE:INFA) raised more than $800 million at the IPO in late October 2021, fetching a valuation of nearly $8 billion. Informatica Inc. (NYSE:INFA) has continued to register impressive gains since then, climbing to a market capitalization of close to $10 billion within a few weeks of the initial offering.
Informatica Inc. (NYSE:INFA) posted earnings for the third quarter in late November, reporting earnings per share of $0.23, beating estimates by $0.06. The revenue over the period was $361 million, up 10% year-on-year.
On December 9, investment advisory Macquarie initiated coverage of Informatica Inc. (NYSE:INFA) stock with an Outperform rating and a price target of $40. Analyst Frederick Havemeyer issued the ratings update.
1. Samsara Inc. (NYSE:IOT)
Number of Hedge Fund Holders: N/A
Gain in 2021: 13%
Samsara Inc. (NYSE:IOT) operates as an application software firm. The firm markets products that increase the safety of global cloud-based operations. For example, some of the products that Samsara Inc. (NYSE:IOT) offers in this regard include video-based safety, vehicle telematics, apps and driver workflows, and equipment monitoring, among others. These products are powered by artificial intelligence.
Samsara Inc. (NYSE:IOT) products are used across a wide range of industries, including healthcare, transportation, and utilities. Samsara Inc. (NYSE:IOT) raised $805 million at the initial public offering in 2021, trading at the top of the IPO price range and fetching a valuation of around $12 billion.
Analysts expect Samsara Inc. (NYSE:IOT) stock to climb in the coming years as the firm operates in a niche market within the software industry and spending in the sector was accelerating amid the larger backdrop of digitization.
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