5 Best Young Stocks to Buy Now

2. Qualtrics International Inc. (NASDAQ:XM)

Number of Hedge Fund Holders: 32  

Qualtrics International Inc. (NASDAQ:XM) operates an experience management platform to manage customer, employee, product, and brand experiences worldwide. It is one of the major IPO stocks to invest in. On October 4, Fullstory, a leader in digital experience intelligence, launched a new integration with Qualtrics which places Fulstory’s session replay capabilities directly with Qualtrics platform. 

On August 9, HSBC analyst Antonin Baudry maintained a Buy rating on Qualtrics International Inc. (NASDAQ:XM) stock and lowered the price target to $20 from $40, noting that the company’s momentum remained strong in Q2.

Among the hedge funds being tracked by Insider Monkey, California-based investment firm Silver Lake Partners is a leading shareholder in Qualtrics International Inc. (NASDAQ:XM), with 25 million shares worth more than $312.6 million. 

In its Q4 2021 investor letter, VGI Partners, an asset management firm, highlighted a few stocks and Qualtrics International Inc. (NASDAQ:XM) was one of them. Here is what the fund said:

“Our analysis shows Qualtrics International Inc. (NASDAQ:XM) is the world leader in experience management (EM) software. EM software is a category that has been turbocharged by the pandemic as corporations and governments are striving to better understand their customers and employees in order to improve satisfaction, retention and in turn maximise the dollar return on each customer. Customer experience was previously assessed via surveys and other forms of analog feedback. Today Qualtrics allows its clients to assess their customers’ feedback and improve the experience with more sophisticated tools (e.g. Net Promoter Scores) and in real time via multiple data feeds which include call centre conversations, emails, online chatbots, social media feeds and so on.

A good example of a Qualtrics customer is JetBlue Airlines, a major American low-cost airline. JetBlue use the platform to analyse customer feedback and in turn better tailor pricing for flights and also improve the in-flight experience, in order to expand Net Promoter Scores (NPS) and increase customer retention through this real-time feedback. For example, by combining flight frequency and pricing studies, JetBlue found that 82% of their passengers didn’t care about free bags and instead preferred cheaper ticket prices. JetBlue responded by rolling out different rate structures and pricing options for passengers, which were well received. By taking a deep dive into passengers’ feedback in Philadelphia, JetBlue was able to trace dissatisfaction to the lack of airport shops and amenities open early in the morning, where JetBlue responded quickly by simply passing out water, juice, and coffee at the gate to boost customer satisfaction (read more)