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This article looks at the 15 best new tech stocks to buy right now. You can skip our detailed analysis of the new tech stocks and go straight to the 5 Best New Tech Stocks to Buy Now.
Recently, there has been a lot of tech IPOs on the stock market. A report by FactSet says that the number of initial public offerings (IPOs) doubled in 2020, which is a 150% increase from 2019. The financial data company says that there were 494 IPOs in 2020 that raised $174 billion.
Even though the pandemic made 2020 an uncertain year for most industries, investors became bullish on tech stocks because the industry was able to adapt to the new norm. Many big companies let people work from home, which helped tech stocks soar and reach new heights. The NASDAQ-100 Technology Sector went up by 42.2% in the past year. Also, FactSet put out a report that said 15 IPOs by technology companies would raise $34.3 billion in 2020.
In 2020, a number of tech companies went public. Airbnb, Inc. (NASDAQ: ABNB) and DoorDash, Inc., both big names, were among them (NYSE: DASH). Palantir Technologies Inc., a software company based in Colorado (NYSE: PLTR), was another well-known company that went public in 2020.
Many companies have already gone public in the first half of 2021 through IPOs, SPACs, or direct listings. This seems to be a trend that will keep going. The Renaissance IPO Index, which is made up of U.S. companies that just went public and are listed on the stock market, has gone up by 38.6% in the past year. 46.9% of the Renaissance IPO Index is made up of the technology sector.
Confluent, Inc. (NASDAQ: CFLT), SentinelOne, Inc. (NYSE: S), Coinbase Global, Inc. (NASDAQ: COIN), and UiPath, Inc. are all tech companies that recently went public (NYSE: PATH).
After its direct listing, the cryptocurrency trading platform Coinbase Global, Inc. (NASDAQ: COIN) had the highest valuation in 2021 so far, at $86 billion. Coupang, Inc., an e-commerce company based in South Korea (NYSE: CPNG), had one of the biggest initial public offerings (IPOs) ever with a $60 billion valuation. Coupang, Inc.’s (NYSE: CPNG) IPO was able to bring in $4.6 billion. UiPath Inc. (NYSE: PATH) went public on April 22 and raised $1.3 billion. This was one of the largest software IPOs in the US.
There’s no doubt that IPOs are popular with investors because the initial share price can be a good deal. But investing in companies that just went public can make or break your portfolio. Doug Boneparth, a financial analyst, says that an IPO does not show where a company will go in the future.
Forbes also put out a report that said that between 1975 and 2011, 60% of recently public companies had negative returns. Experts say that investors could make a lot of money with new companies if they did their research and put in a small amount of money. Before investing, people should carefully think about the risks, costs, and fees.
Investing is getting harder every day, even for smart people. The changing financial landscape is having an effect on the whole hedge fund industry. Its reputation has been hurt by the fact that its hedged returns haven’t kept up with the unhedged returns of the market indices over the past ten years.
On the other hand, Insider Monkey’s research was able to find ahead of time a small group of hedge fund holdings that have done better than the S&P 500 ETFs by more than 124 percentage points since March 2017. Our monthly newsletter’s stock picks did 186.1% better than the S&P 500 ETF (SPY) between March 2017 and July 2021. Our stock picks did better than the market by more than 124%. (See the details here.) Because of this, we think that the mood of hedge funds is a very useful sign that investors should pay attention to. On our home page, you can sign up for our free newsletter so that you can get our stories in your email inbox.
Our Methodology Let’s look at our list of the 15 best new tech stocks to buy right now. When choosing these stocks, we looked at tech companies that went public in 2021, how analysts rated them, how much they could grow in the long term, and how stable they were. When we say “new tech stocks,” we mean the stocks of tech companies that have recently gone public. Since these companies just went public, you’ll notice that, as of the end of the first quarter of 2021, many of them don’t have any hedge funds with stakes in them. This is based on data from 866 hedge funds.
1. (NASDAQ: BASE)
Couchbase, Inc., which trades on the NASDAQ under the symbol “BASE,” is an American software company that makes high-performance modern databases that are used in interactive apps. Couchbase, Inc. (NASDAQ: BASE) works with many of the largest companies in the world. This includes more than 30% of the Fortune 100.
On July 22, Couchbase, Inc. (NASDAQ: BASE) had a good initial public offering (IPO) that raised over $200 million. Annual Recurring Revenue, or ARR, for the company, is growing at a compound annual growth rate (CAGR) of 26% and will reach $110 million in FY21. The total amount of money made was $103.3 million. Couchbase, Inc. (NASDAQ: BASE) made $3.39 million in revenue in Q1 FY22, which was up 26.7% from the same quarter the year before. Since it went public, the stock has gone up 4.2%.
2. Clear Secure, Inc. (NYSE: YOU)
IPO Date: June 29, 2021, The company is not owned by any hedge funds.
Clear Secure, Inc., which trades on the New York Stock Exchange under the symbol “YOU,” is a technology company that focuses on secure identity platforms that link people’s personal information with their biometric data. The company’s software can be used to keep airports and other places safe. In 2010, Clear Secure, Inc. (NYSE: YOU) began.
Clear Secure, Inc. (NYSE: YOU) made over $230.7 million in revenue in FY20, which is more than the $192 million it made in 2019. From July. Clear Secure, Inc. (NYSE: YOU) was the first company that JPMorgan covered. They gave it an “overweight” rating and a $52 price target.
The company thinks that it has growth potential and is likely to expand into nearby markets. In July, Stifel began following the stock and gave it a “buy” rating. Clear Secure, Inc. (NYSE: YOU) went public on June 30 and gained almost 25% on its first day of trading. Since then, the stock has gone up by 47.7%.
3. SHLS (Shoals Technology Group, Inc.)
Date of IPO: January 27, 2021, The company is not owned by any hedge funds.
Shoals Technologies Group, Inc. (NASDAQ: SHLS) is a tech company that helps solar energy projects with their EBOS, or electrical balance of systems. The main goal of the company’s EBOS solutions is to lower installation costs, and the company is thought to be the first to sell “plug-and-play” EBOS systems. Shoals Technologies Group, Inc. was started in 1996 and has its main office in Portland, U.S.
Shoals Technologies Group, Inc. (NASDAQ: SHLS) made $45.6 million in revenue in the first quarter of 2021, up from $40.7 million in the same quarter last year. Gross profit also went up by 32%, from $14.2 million to $18.8 million, compared to the same quarter last year. Shoals Technologies Group, Inc. (NASDAQ: SHLS) thinks that its sales for FY21 will be between $230 million and $240 million.
4. ZipRecruiter, Inc. (NYSE: ZIP)
Date of IPO: May 26, 2021, The company is not owned by any hedge funds.
ZipRecruiter, Inc. (NYSE: ZIP) is an online company that helps people find jobs. It does this with the help of AI-matching technology. The company’s online portal was made to make it easier for people to look for jobs. In 2010, ZipRecruiter, Inc. (NYSE: ZIP) was founded.
5. Monday.com, Inc. (NASDAQ: MNDY)
IPO Date: June 10, 2021, The company is not owned by any hedge funds.
Monday.com Ltd. is an Israeli software company that focuses on a cloud-based platform. Its stock symbol is MNDY. Work OS, the company’s software, makes it easy for customers to make software applications and tools for managing work that meet their needs. Monday.com Ltd. has more than 110,000 customers all over the world and is based in Tel Aviv.
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