In this article, we will be taking a look at the 5 best big tech stocks to buy now. To read our analysis of the recent technology trends, and market activity, you can go to the 12 Best Big Tech Stocks to Buy Now.
5. ServiceNow, Inc. (NYSE:NOW)
Market Capitalization as of October 10: $84.5 billion
Current Share Price as of October 10: $378.68
Number of Hedge Fund Holders: 99
Santa Clara, California-based ServiceNow, Inc. (NYSE:NOW) provides a cloud-based computing platform to help organizations manage digital workflows for enterprise operations. It boasts more than 7,400 customers including 80% of the 500 largest U.S. companies.
In July, ServiceNow, Inc. (NYSE:NOW) reported its financial results for Q2 2022. Its revenue increased by 24% y-o-y to $1.8 billion while the company generated a net income of $20 million. It generated a normalized EPS of $1.62 for the quarter, beating the consensus by $0.07.
ServiceNow, Inc. (NYSE:NOW) shares have taken a beating so far this year with shares down by 38.19% year-to-date, as of October 10. A majority of the analysts are bullish on the prospects of the company with average price target of $557.15 for its shares, representing a 47% potential upside in the share value.
On October 10, JPMorgan analyst Mark Murphy resumed coverage of ServiceNow, Inc. (NYSE:NOW) shares and upgraded the rating to ‘Overweight’ from ‘Neutral’ with a $460 price target. The analyst believes that “large growth runway and remains among the ‘best homes in a temporarily deteriorating neighborhood.'”
As of Q2 2022, 99 of the 895 hedge funds tracked by Insider Monkey owned shares of ServiceNow, Inc. (NYSE:NOW), valued at $5.2 billion. Its largest shareholder was Ken Fisher’s Fisher Asset Management with ownership of 1.5 million shares valued at $694 million.
4. Salesforce, Inc. (NYSE:CRM)
Market Capitalization as of October 10: $155.5 billion
Current Share Price as of October 10: $144.98
Number of Hedge Fund Holders: 116
San Francisco, California-based Salesforce, Inc. (NYSE:CRM) is the world’s leading customer relationship management platform provider. Its cloud-based platform has applications for sales, service, marketing, and more, with more than 150,000 companies using the platform.
In August, Salesforce, Inc. (NYSE:CRM) reported the financial results for the quarter ended July 31, 2022. Its revenue increased by 22% y-o-y to $7.7 billion, while it generated a net income of $68 million. It reported a normalized EPS of $1.19 for the quarter, beating the consensus by $0.16.
As of October 10, Salesforce, Inc. (NYSE:CRM) shares have lost 40.86% of their value since the beginning of the year and trade at a forward P/E ratio of 26.46. Analysts maintain bullish sentiments for the stock with average price target of $222.41, representing 53% upside potential.
On September 27, Jefferies analyst Brent Thill told investors in a research note that Salesforce, Inc. (NYSE:CRM) can deliver high-teens growth while delivering margin leverage, and the analyst finds the stock “valued attractively at trough levels”. The analyst maintains a target price of $250 and a ‘Buy’ rating.
According to the Insider Monkey data on 895 leading hedge funds, 116 hedge funds were long Salesforce, Inc. (NYSE:CRM) shares as of Q2 2022, with the total shares held by hedge funds valued at $7.9 billion. Ken Fisher’s Fisher Asset Management was the largest shareholder on record with ownership of 15.7 million shares valued at $2.6 billion.
3. Apple Inc. (NASDAQ:AAPL)
Market Capitalization as of October 10: $2.34 trillion
Current Share Price as of October 10: $139.61
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) is a leading technology company focused on the designing, manufacturing, and marketing of smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services.
Major products of Apple Inc. (NASDAQ:AAPL) include the iPhone, Mac PCs, iPad, and accessories while service offerings include Apple Care, Cloud Services, Digital Content and Payment services. iPhone sales accounted for more than half of its revenue in the last fiscal year. The company announced the launch of iPhone 14 in the first week of September which could result in a surge in the company’s revenue.
Despite the bloodbath in the technology sector, Apple Inc. (NASDAQ:AAPL) shares have only lost 21.11% of their value since the beginning of the year, as of October 10. The tech giant currently trades at a forward P/E ratio of 21.68 and offers up to 31% upside potential from the current price levels based on the average analyst price target of $183.50.
On September 20, Evercore ISI analyst Amit Daryanani raised the price target on Apple Inc. (NASDAQ:AAPL) shares to $190 from $185, with an ‘Outperform’ rating. The analyst sees “modest unit upside” compared to low-single digit Street expectations, although average selling prices “could surprise materially”.
Apple Inc. (NASDAQ:AAPL) is among the favorites of hedge funds, with 128 of the 895 hedge funds tracked by Insider Monkey holding its shares valued at a whopping $143 billion. Warren Buffet’s Berkshire Hathaway is its biggest shareholder with ownership of 894.8 million shares valued at $122.3 billion.
2. Uber Technologies, Inc. (NYSE:UBER)
Market Capitalization as of October 10: $58.9 billion
Current Share Price as of October 10: $27.36
Number of Hedge Fund Holders: 129
San Francisco, California-based, Uber Technologies, Inc. (NYSE:UBER) provides technology platforms matching consumers looking for rides and independent ride services providers. It also offers other forms of transportation including public transit, bikes, and scooters. Other offerings include food delivery on demand, freight services, business fleet services, and same day delivery options. It operates in over 70 countries worldwide and boasted 115 million monthly active platform consumers as of March 31, 2022.
In August, Uber Technologies, Inc. (NYSE:UBER) released its financial results for the second quarter of 2022. Its total revenue increased by 106% y-o-y to $8.1 billion, while it reported a net loss of $2.6 billion. The normalized EPS was recorded at -$0.03 for the quarter, beating the consensus by $0.02.
As of October 10, Uber Technologies, Inc. (NYSE:UBER) shares are down 33% year-to-date. The average analyst price target is $46.95 per share.
As of Q2 2022, 129 of the 895 hedge funds tracked by Insider Monkey were long Uber Technologies, Inc. (NYSE:UBER), holding shares worth $5.3 billion. Ken Fisher’s Fisher Asset Management was the largest shareholder with ownership of 24.5 million shares valued at $501 million.
1. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization as of October 10: $1.84 trillion
Current Share Price as of October 10: $227.46
Number of Hedge Fund Holders: 258
Redmond, Washington-based Microsoft Corporation (NASDAQ:MSFT) is a leading technology company with products include operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games. Microsoft Corporation (NASDAQ:MSFT) boasts over 1.4 billion monthly active devices running its flagship operating system, Windows 10 or 11.
As of October 10, Microsoft Corporation (NASDAQ:MSFT) shares have lost 30.35% of their value on year-to-date basis and trade at a forward P/E ratio of 19.68. Majority of analysts are bullish about the prospects of Microsoft Corporation (NASDAQ:MSFT) as they hold an average price target of $331.47, 46% higher than the current price.
On September 20, board of directors of Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend of $0.68 per share, reflecting a 10% increase over the previous quarter’s dividend. Following the announcement, Morgan Stanley analyst Keith Weiss said the dividend hike highlights the stock’s “durable high-teens total return profile” when factored along with Microsoft’s high-teens percentage EPS growth. The analyst maintains an ‘Overweight’ rating and a price target of $354 for the shares.
As of Q2 2022, Microsoft Corporation (NASDAQ:MSFT) is the most sought-after stock among the 895 hedge funds tracked by Insider Monkey as 258 of these hedge funds held shares in the software giant, valued at $56 billion.
You may also like to read Top 10 Stock Picks of Malcolm Levine’s Dendur Capital and 10 Best Hurricane and Natural Disaster Stocks to Buy Now
