In this article we discuss the 5 best cheap tech stocks to buy according to Cathie Wood. If you want to read our detailed analysis of Wood‘s history, and hedge fund performance, go directly to the 10 Best Cheap Tech Stocks to Buy According to Cathie Wood.
5. HUYA Inc. (NYSE: HUYA)
Number of Hedge Fund Holders: 13
HUYA Inc. (NYSE: HUYA) is a China-based company that operates game live streaming platforms. It was founded in 2014 and is placed fifth on our list of 10 best cheap tech stocks to buy according to Cathie Wood. ARK Investment holds close to 11 million shares in the company worth over $214 million. This represents 0.42% of their investment portfolio. HUYA offers streaming services for over 4,000 games, as well as for other sectors such as talent shows, anime, outdoor activities, live chats, and online theatre, among others.
On May 18, HUYA Inc. (NYSE: HUYA) posted earnings results for the first quarter of 2021, reporting earnings per share of $0.17, beating market predictions by $0.03. The revenue for the first three months of 2021 was close to $400 million, up 16% year-on-year.
Out of the hedge funds being tracked by Insider Monkey, Hong Kong-based investment firm Segantii Capital is a leading shareholder in HUYA Inc. (NYSE: HUYA) with 2.2 million shares worth more than $44 million.
4. Opendoor Technologies Inc. (NASDAQ: OPEN)
Number of Hedge Fund Holders: 33
Opendoor Technologies Inc. (NASDAQ: OPEN) is a California-based company that offers clients the ability to transact in residential real estate online. It was founded in 2014 and is ranked fourth on our list of 10 best cheap tech stocks to buy according to Cathie Wood. Opendoor stock has returned more than 1.15 to investors in the past week. ARK Investment holds 11 million shares in the company worth over $246 million, representing 0.48% of their investment portfolio.
Opendoor Technologies Inc. (NASDAQ: OPEN) reported earnings per share of -$0.48 for the first three months of 2021, beating market predictions by $0.01. The revenue for the first quarter was close to $750 million, beating market estimates by $127 million.
At the end of the first quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $1.04 billion in Opendoor Technologies Inc. (NASDAQ: OPEN), up from 28 in the preceding quarter worth $1.02 billion.
Just like Square, Inc. (NYSE: SQ), Spotify Technology S.A. (NYSE: SPOT), Tesla, Inc. (NASDAQ: TSLA), Palantir Technologies Inc. (NYSE: PLTR) and Baidu, Inc. (NASDAQ: BIDU), Opendoor Technologies Inc. (NASDAQ: OPEN) is one of the best stocks to buy according to Cathie Wood.
In its Q1 2021 investor letter, Baron Fund, an asset management firm, highlighted a few stocks and Opendoor Technologies Inc. (NASDAQ: OPEN) was one of them. Here is what the fund said:
“The sales of Opendoor Technologies Inc. was a trim for position-sizing purposes after orders-of-magnitude type stock returns over the last year for these investments. We continue to believe the company is a disruptive innovator with open-ended long-term opportunities.”
3. Stratasys Ltd. (NASDAQ: SSYS)
Number of hedge fund holders: 24
Stratasys Ltd. (NASDAQ: SSYS) is a Minnesota-based company that makes 3D printers and production systems for offices. It was founded in 1989 and is placed third on our list of 10 best cheap tech stocks to buy according to Cathie Wood. ARK Investment holds 10.4 million shares in the firm worth over $269 million, representing 0.53% of their portfolio. The company stock has offered investors returns exceeding 16% over the course of the past twelve months. The firm serves several markets like automotive, aerospace, medical, and education, among others.
In earnings results for the first quarter of 2021, posted on May 5, Stratasys Ltd. (NASDAQ: SSYS) reported earnings per share of -$0.06, missing market predictions by $0.06. The revenue for the first three months of the year was over $134 million, up 1% year-on-year.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Stratasys Ltd. (NASDAQ: SSYS) with 3.1 million shares worth more than $80 million.
Just like Square, Inc. (NYSE: SQ), Spotify Technology S.A. (NYSE: SPOT), Tesla, Inc. (NASDAQ: TSLA), Palantir Technologies Inc. (NYSE: PLTR) and Baidu, Inc. (NASDAQ: BIDU), Stratasys Ltd. (NASDAQ: SSYS) is one of the best stocks to buy according to Cathie Wood.
In its Q1 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and Stratasys Ltd. (NASDAQ: SSYS) was one of them. Here is what the fund said:
“Short position Stratasys also contributed to performance. Stratasys is one of the larger 3D printing companies. While additive manufacturing (3D printing) is a revolutionary concept, it has only seen its primary adoption for manufacturing prototypes and test parts, not high-volume end-use parts. Unfortunately for incumbents like Stratasys, additive manufacturing has continued to attract capital and dozens of new entrants have emerged with new technologies targeting specific applications. Industry pioneers like Stratasys have seen key patents expire and have lost market share to new competition. As a result of these factors, Stratasys has not grown for five years. Some industry participants believe that Stratasys’ plastic extrusion technology is simply too slow to be an acceptable solution for higher volume manufacturing. The short position contributed to portfolio returns when Stratasys’ shares declined due to year-over-year revenue contraction, continuing market share losses, a talent exodus, the issuance of new shares via a secondary offering, and no significant progress on developing new opportunities in promising additive verticals like metal and dental.”
2. Palantir Technologies Inc. (NYSE: PLTR)
Number of hedge fund holders: 32
Palantir Technologies Inc. (NYSE: PLTR) is a Colorado-based company that focuses on big data analytics. It was founded in 2003 and is ranked second on our list of 10 best cheap tech stocks to buy according to Cathie Wood. ARK Investment holds more than 18.6 million shares in the company worth over $433 million, representing 0.86% of their portfolio. Palantir stock has returned close to 4% to investors over the past week. One of the famous products of the firm is Palantir Gotham, a software for government operatives in the defense and intelligence sectors.
In earnings results for the first quarter of 2021, posted on May 11, Palantir Technologies Inc. (NYSE: PLTR) reported earnings per share of $0.04 and a revenue of $341 million. For the second quarter of the year, the firm projects $360 million in revenue.
At the end of the first quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Palantir Technologies Inc. (NYSE: PLTR), down from 38 in the preceding quarter worth $1.9 billion.
In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Palantir Technologies Inc. (NYSE: PLTR) was one of them. Here is what the fund said:
“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companies to make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”
1. Pure Storage, Inc. (NYSE: PSTG)
Number of Hedge Fund Holders: 30
Pure Storage, Inc. (NYSE: PSTG) is a California-based technology firm that focuses on data storage solutions. It was founded in 2009 and is placed first on our list of 10 best cheap tech stocks to buy according to Cathie Wood. Pure Storage stock has offered investors returns exceeding 8.5% in the past year. ARK Investment holds more than 32.8 million shares in the data storage company worth over $708 million, representing 1.4% of their portfolio. Pure Storage was formerly known as OS76.
On May 13, investment advisory Evercore upgraded Pure Storage, Inc. (NYSE: PSTG) storage stock to Outperform from In Line on the back of expected accelerating top-line growth for the data firm as enterprise spending continued to improve in the post pandemic economy.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Eminence Capital is a leading shareholder in Pure Storage, Inc. (NYSE: PSTG) with 6 million shares worth more than $130 million.
You can also take a peek at 10 Cheap Stocks To Invest In February 2021 and Top 10 Stocks to Invest in For Beginner Investors.
