10 Best Cloud Computing Stocks to Buy Under $10

2. Blend Labs Inc. (NYSE:BLND)

Current Share Price: $3.56

Number of Hedge Fund Holders: 33

Blend Labs Inc. (NYSE:BLND) provides a cloud-based platform for banks, credit unions, and lenders which makes lending easier for them. Its software helps simplify the process for mortgages, home equity, auto loans, and personal loans, and enables financial institutions to provide a smooth and digital experience for borrowers.

In Q4 2024, Blend Labs’ total revenue increased 15% year-over-year to $41.4 million, primarily driven by the Consumer Banking Suite business, where revenue rose 48% YoY. However, its Mortgage Suite business saw a slower revenue growth of 6%. That said, the company has seen its profitability improve sharply, with adjusted net profit for the quarter coming in at $5.2 million, versus an adjusted loss of $13.1 million in the prior year period.

For the longer term, the company expects its Consumer Banking Suite Revenue to grow at a CAGR of 35%-40% from 2023 to 2026, which is impressive. The company also reported some important deal wins in the quarter, including multi-year mortgage and home equity deals with a U.S. bank, which ranks in the top 10 banks by asset size. They also signed an agreement with PHH Mortgage, one of the nation’s largest home mortgage servicers. The momentum in customer base expansion is well driven by the company’s leverage of data integration and automation to drive efficiency, compliance, and improved customer satisfaction.