12 Best Technology Penny Stocks To Buy According to Hedge Funds

10. Blend Labs, Inc. (NYSE:BLND)

Number of Hedge Fund Investors: 17

Stock Price as of December 23: $4.40

Blend Labs, Inc. (NYSE:BLND) is a financial technology company that offers a cloud-based platform designed to simplify and automate the mortgage lending and banking process. The platform helps financial institutions streamline workflows, reduce loan processing times, and improve customer experiences. Blend Labs, Inc. (NYSE:BLND) serves major banks, credit unions, and fintech firms, including clients such as Wells Fargo and U.S. Bank. The company primarily earns revenue from its software subscription model.

Despite the challenging macroeconomic environment, Blend Labs, Inc. (NYSE:BLND) is seeing renewed optimism and momentum in the mortgage industry. The company is investing in mortgage-related products to stay ahead of industry trends and meet the evolving needs of its customers. One key initiative is the development of the next-generation regenerative finance (ReFi) solution, known as Rapid Refi, which is designed to provide a seamless and frictionless refinancing experience. This solution is expected to drive higher conversion rates and retention for the company’s customers, ultimately leading to increased revenue and improved unit economics for the company. Additionally, Blend Labs, Inc. (NYSE:BLND) is actively expanding its customer base and pipeline, with recent wins with PenFed Credit Union to enhance its home lending operations. The company is also in negotiations with other top-tier financial institutions.

One of the most significant milestones for Blend Labs, Inc. (NYSE:BLND) in Q3 was achieving its first positive non-GAAP operating income quarter as a public company. To maintain and build upon this profitability, the company is transitioning to a simpler, software-focused model. This approach leverages the company’s core strength, which enables best-in-class experiences across a wide range of solutions. Blend Labs, Inc. (NYSE:BLND) is also streamlining operations and reducing costs to create operational leverage that will drive long-term profitability.