In this article, we will be taking a look at 5 Nasdaq sleeper stocks to buy before Wall Street wakes up. To read our detailed analysis of these stocks, you can go directly to see the 10 Nasdaq Sleeper Stocks to Buy Before Wall Street Wakes Up.
5. Upwork Inc. (NASDAQ:UPWK)
Number of Hedge Fund Holders: 25
Upwork Inc. (NASDAQ:UPWK) is an industrial company that operates a work marketplace connecting businesses with independent professionals and agencies. The company operates in the US, India, the Phillippines, and internationally.
On October 27, Needham analyst Bernie McTernan reiterated a Buy rating on Upwork Inc. (NASDAQ:UPWK) shares. The analyst also placed a $19 price target on the stock.
The company’s gross service volume rose by 19% year-over-year in the second quarter. Upwork Inc.’s (NASDAQ:UPWK) marketplace revenue was $144.3 million, also growing at 26% year-over-year. The company’s client base has been growing over the past quarters and has contributed to the revenue growth by increasing client spending.
There were 25 hedge funds long Upwork Inc. (NASDAQ:UPWK) in the second quarter. Their total stake value was $401.7 million.
4. Rivian Automotive Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 35
Rivian Automotive Inc. (NASDAQ:RIVN) is an automobile manufacturing company selling electric vehicles. The company is based in Irvine, California.
Vijay Rakesh, an analyst at Mizuho, reiterated a Buy rating and a $65 price target on Rivian Automotive Inc. (NASDAQ:RIVN) shares on October 11.
Rivian Automotive Inc. (NASDAQ:RIVN) reported revenues of $536 million in the third quarter. It is also improving its loss margins. For instance, in the third quarter, its non-GAAP loss narrowed by $34 million. The company is also benefitting from high demand for its products, as seen in the second quarter when it reported about 98,000 net pre-orders. These orders are in addition to the 100,000 initial orders of electric vans ordered by Amazon.
Rivian Automotive Inc. (NASDAQ:RIVN) was found among the 13F holdings of 35 funds in the second quarter and 29 funds in the previous quarter. Their total stake values were $1.6 billion and $3.9 billion, respectively.
Baron Funds, an asset management company, mentioned Rivian Automotive Inc. (NASDAQ:RIVN) in its third-quarter 2022 investor letter. Here’s what the firm said:
“Rivian Automotive, Inc. (NASDAQ:RIVN) designs, manufactures, and sells consumer and commercial electric vehicles (EVs). Shares of Rivian were up 28% in the third quarter driven by second quarter production that beat expectations, a new partnership with Mercedes Benz, and the positive potential impact of the recently announced Inflation Reduction Act on accelerating broader EV adoption. While Rivian continues to be impacted by supply-chain issues that are causing delays in its production ramp, it is addressing the challenges by diversifying its supply chain to alleviate shortages while also consolidating the number of variants in development to reduce cash burn (the company guided that current cash will be enough to support the company’s future platform launch R2 in 2025). The company also recently reported stronger than-expected third quarter production results while reiterating its annual guidance of producing 25,000 units. As semiconductor shortages ease, we believe the company will be able to rapidly ramp its production. While we retain conviction in the shares given the company’s vision, product positioning, relationship with Amazon.com, and strong balance sheet, we have reduced the size of our position.”
3. eBay Inc. (NASDAQ:EBAY)
Number of Hedge Fund Holders: 43
EBay Inc. (NASDAQ:EBAY) is an internet and direct marketing retail company connecting buyers and sellers on its marketplace platforms. It is based in San Jose, California.
Daniel Kurnos at Benchmark holds a Buy rating on EBay Inc. (NASDAQ:EBAY) shares as of November 3. The analyst also placed a $62 price target on the stock.
EBay Inc. (NASDAQ:EBAY) has a decent operating future and positive performance in the third quarter. The company beat its guidance figures for revenue, non-GAAP operating margins, and non-GAAP EPS. Its revenue was $2.38 billion, beating the guidance of $2.29-$2.37 billion, non-GAAP operating margin was 28.9%, while the guidance was between 27-28%, and its non-GAAP EPS was $1, while the guidance was between $0.89-$0.95.
In total, 43 hedge funds were long eBay Inc. (NASDAQ:EBAY) in the second quarter. Their total stake value was $1.3 billion.
Smead Capital Management, an investment management company, mentioned eBay Inc. (NASDAQ:EBAY) in its third-quarter 2022 investor letter. Here’s what the firm said:
“Two things are very noticeable right off the top. First, sometimes you have to be happy losing less in a bear market environment so that you have more of your capital to grow in the next bull market. We are never really happy losing money. Second, 2022 is likely to be our third year of existence as a fund to lose money for the year. This year would join 2008 and 2018 in this undistinguished category. Our biggest detractors was dominated by eBay (NASDAQ:EBAY). Consumer/investor fears about media and e-commerce hit WBD and EBAY and profit taking in Amgen came from early 2022 strength.”
2. Zoom Video Communications, Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 44
Zoom Video Communications, Inc. (NASDAQ:ZM) is an information technology company providing a unified communications platform. The company is based in San Jose, California.
A Buy rating was reiterated on Zoom Video Communications, Inc. (NASDAQ:ZM) shares on November 9, by analyst Catharine Trebnick at MKM Partners. The analyst also placed a $100 price target on the stock.
Now is a good time to gain a position in Zoom Video Communications, Inc. (NASDAQ:ZM), as the stock lost 55% year-to-date as of October 31. The company has over $5 billion in cash on its books, with no debt. Its enterprise value was $19.53 billion at the end of October.
Zoom Video Communications, Inc. (NASDAQ:ZM) had 44 hedge funds long its stock in the second quarter and 43 hedge funds long its stock in the previous quarter. Their total stake values were $2.9 billion and $3.2 billion, respectively.
1. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 77
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is another information technology company on our list. It provides cloud-delivered protections across endpoints and cloud workloads, identity, and data.
On November 2, Macquairie’s Frederick Havemeyer initiated coverage of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) shares with an Outperform rating and a $220 price target.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leading cybersecurity company. The number of customers subscribing to the company’s Identity Protection modules in the fiscal first quarter of 2023 grew over 30% quarter-over-quarter. The company has seen its endpoint market share grow drastically between 2019 and 2022, from 6.3% to 12.6%.
Our hedge fund data shows 77 funds long CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in the second quarter, with a total stake value of $4.1 billion.
Carillon Tower Advisers, an investment management company, mentioned CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its second-quarter 2022 investor letter. Here’s what the firm said:
“CrowdStrike Holdings, Inc. (NASDAQ:CRWD), a security software platform for protecting information technology assets and cloud workloads, delivered strong earnings results, with solid recurring revenue, customer growth, and profitability. Some investors, however, hoped for bigger numbers on the annual recurring revenue metric. Additionally, CrowdStrike has shown a desire to continue to hire to fuel growth, and so the expected increase in future profitability will be held back somewhat in the near term. We remain positive on the company’s prospects, as current geopolitical tensions make cyber security mission-critical.”
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