10 Cheap Technology Stocks to Buy According to Hedge Funds

3. Block, Inc. (NYSE:XYZ)

Forward P/E: 14.27

Number of Hedge Fund Holders: 81

Block, Inc. (NYSE:XYZ) is an American financial technology company that provides a variety of financial services to consumers and merchants. The company’s main product, Square, makes commerce and financial services accessible to sellers while Cash App allows users to send, receive, or hold money, invest in stocks and Bitcoin, apply for personal loans, and even file taxes. Block, Inc. (NYSE:XYZ) offers buy now, pay later (BNPL) services through Afterpay. Additionally, the company offers music streaming services through Tidal and self-custody Bitcoin wallet services through Bitkey. According to hedge funds, XYZ is one of the best cheap tech stocks to buy.

The company operates a diverse business model that caters to a range of customers to generate multiple revenue streams. Block, Inc. (NYSE:XYZ) is strategically focused on innovation and product development to grow its business. The company focused on enhancing Square’s onboarding process, commerce tools, and app infrastructure in 2024. Block, Inc. (NYSE:XYZ) launched a new unified app for sellers to simplify onboarding and make Square’s features easily accessible. With an aim to expand into new markets while improving customer experiences, the company also introduced new products like scan-to-pay functionality and house accounts to support sellers.

Block, Inc. (NYSE:XYZ) also strengthened its financial services ecosystem through Cash App’s “bank our base” strategy. The company aims to make Cash App the leading banking service provider targeting US households earning up to $150,000 annually. Block, Inc. (NYSE:XYZ) is creating new offerings and benefits including free overdraft coverage, a 4% savings interest rate, and priority phone support. The company reported that Cash App Card reached 25 million monthly active users by December 2024. In February 2024, Block, Inc. (NYSE:XYZ) also integrated Afterpay with the Cash App Card to allow users to pay for purchases over time. These efforts are expected to boost engagement and usage across the company’s platforms.