5 Best Tech Stocks to Buy On the Dip

In this article, we will take a look at the top 5 best tech stocks to buy on the dip. To see more such companies, go directly to 11 Best Tech Stocks to Buy On the Dip.

5. Marqeta, Inc. (NASDAQ:MQ)

Number of Hedge Fund Holders: 36

Share Price Decline in the Past Six Months: 36.35%

Since Marqeta, Inc. (NASDAQ:MQ)’s major chunk of revenue comes from Block, its stock took a hit after Hindenburg’s short report on Block. But since the short report seems to have no mettle, analysts believe Marqeta, Inc. (NASDAQ:MQ)’s selloff was an overreaction. Earlier this month, Deutsche Bank analyst Bryan Keane started covering Marqeta, Inc. (NASDAQ:MQ) with a Buy rating. Keane said in his note that the demand for the company’s services increased in the last quarter of 2022. He believes Marqeta, Inc. (NASDAQ:MQ) is on “a strong path for bookings growth in 1Q23 and full year FY23.”

As of the end of the fourth quarter of 2022, 36 hedge funds reported owning stakes in Marqeta, Inc. (NASDAQ:MQ).

4. GitLab Inc. (NASDAQ:GTLB)

Number of Hedge Fund Holders: 37

Share Price Decline in the Past Six Months: 24%

GitLab Inc. (NASDAQ:GTLB) shares plunged after the company gave soft revenue guidance for 2023 in March. However, BofA analyst Koji Ikeda reiterated a Buy rating on GitLab Inc. (NASDAQ:GTLB) but decreased the price target to $50 from $75. The analyst believes GitLab Inc. (NASDAQ:GTLB)’s guidance was conservative and does not include “any price increases.”

Insider Monkey’s database of 943 hedge funds shows that 37 hedge funds had stakes in GitLab Inc. (NASDAQ:GTLB). The total value of these stakes was $712 million. The biggest stakeholder of GitLab Inc. (NASDAQ:GTLB) during this period was Mick Hellman’s HMI Capital which owns a $90 million stake in the company.

3. BILL Holdings, Inc. (NYSE:BILL)

Number of Hedge Fund Holders: 58

Share Price Decline in the Past Six Months: 39%

California-based Cloud-based software company BILL Holdings, Inc. (NYSE:BILL) ranks 3rd in our list of the best tech stocks to buy on the dip. BILL Holdings, Inc. (NYSE:BILL) is down after analysts were spooked by the company’s exposure to the failed Silicon Valley Bank and the company’s latest quarterly report which showed slowing total payment volume growth.

As of the end of the fourth quarter of 2022, 58 hedge funds reported owning stakes in BILL Holdings, Inc. (NYSE:BILL).

2. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 63

Share Price Decline in the Past Six Months: 13%

Enphase Energy, Inc. (NASDAQ:ENPH) is one of the most notable technology names in the clean energy space. Enphase Energy, Inc. (NASDAQ:ENPH) makes solar micro-inverters, battery energy storage, and EV charging stations. Enphase Energy, Inc. (NASDAQ:ENPH) has lost about 23% in value over the past six months as of April 11. In March, Susquehanna Financial upgraded Enphase Energy, Inc. (NASDAQ:ENPH) to Positive from Neutral with a $275 price target. The firm at the time said Enphase Energy, Inc. (NASDAQ:ENPH)’s valuation had become attractive following a 40% decline since December 2022. The firm said that growth in Europe could offset short-term weaknesses in the US.

As of the end of the fourth quarter of 2022, 63 hedge funds had stakes in Enphase Energy, Inc. (NASDAQ:ENPH). The biggest stakeholder of Enphase Energy, Inc. (NASDAQ:ENPH) is John Overdeck And David Siegel’s Two Sigma Advisors which owns a $354 million stake in the company.

1. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 70

Share Price Decline in the Past One Month: 13%

Block, Inc. (NYSE:SQ) shares jumped in March after the company posted solid rebuttals to the short report by Hindenburg Research. The short report has apparently failed to affect Block, Inc. (NYSE:SQ). Cathie Wood was quick to buy the dip on SQ when the stock fell sharply after the short report. Cathie Wood reportedly bought over 300,000 shares of Block, Inc. (NYSE:SQ) in late March. Block, Inc. (NYSE:SQ) shares are still down about 5% over the past thirty days through April 11. In late March, DA Davidson analyst Christopher Brendler reaffirmed his Buy rating on Block, Inc. (NYSE:SQ) and called the dip in shares “a compelling short-term buying opportunity.”

One-year average price estimate for Block, Inc. (NYSE:SQ) stock set by analysts is $94, which presents a solid upside potential from the current levels.

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