13 Best Small Cap Tech Stocks to Buy Now

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1. Rapid7 Inc. (NASDAQ:RPD)

Number of Hedge Fund Holders: 45

Market Capitalization: $1.76 billion

Rapid7, Inc. (NASDAQ:RPD) is a cybersecurity company that offers security analytics and automation solutions. It offers consulting services, penetration testing, IoT security testing, vulnerability management, and incident detection and response services. In terms of growth, the company’s go-to-market strategy has undergone considerable adjustments in order to improve sales effectiveness and market penetration.

On February 13, DA Davidson adjusted its price target for Rapid7 Inc. (NASDAQ:RPD) to $35, down from the prior goal of $39, while keeping a Neutral rating on the company. This decision comes in the aftermath of the company’s most recent quarterly financial reports. Rapid7 Inc. (NASDAQ:RPD) announced $844 million in revenue for the fiscal year 2024, a 9% increase over the previous year, fueled by $809 million in product subscription revenue. Meanwhile, the company’s GAAP operating income came in at $35 million, while non-GAAP operating income was $164 million, indicating increased profitability.

While we acknowledge the potential of RPD as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RPD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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