In this article, we discuss 5 best young stocks to buy now. If you want to read about some more insurance stocks, go directly to 12 Best Young Stocks to Buy Now.
5. Playtika Holding Corp. (NASDAQ:PLTK)
Number of Hedge Fund Holders: 22
Playtika Holding Corp. (NASDQ:PLTK) develops mobile games in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It is one of the best IPO stocks to invest in. On August 5, Cowen analyst Doug Creutz maintained an Outperform rating on Playtika Holding Corp. (NASDAQ:PLTK) stock and lowered the price target to $31 from $35, noting that the company’s estimates were in-line with management’s new guidance, which appeared reasonable given current market conditions.
At the end of the second quarter of 2022, 22 hedge funds in the database of Insider Monkey held stakes worth $265.6 million in Playtika Holding Corp. (NASDQ:PLTK), compared to 26 the preceding quarter worth $409.9 million.
4. Bumble Inc. (NASDAQ:BMBL)
Number of Hedge Fund Holders: 23
Bumble Inc. (NASDAQ:BMBL) provides online dating and social networking platforms in North America, Europe, and internationally. It is one of the top IPO stocks to invest in. On October 10, the firm announced that it would partner with Ted Lasso, a fictional dating app, to bring the experience of its Bantr to the users of Bumble. On October 3, the firm announced that it was testing a speed dating feature in its UK market which allows the users to chat with other members before they have seen their photos.
On September 14, Stifel analyst Mark Kelley resumed coverage of Bumble Inc. (NASDAQ:BMBL) stock with a Buy rating and a $35 price target, noting the company’s continued growth in North America and faster growth in international markets, particularly in India.
At the end of the second quarter of 2022, 23 hedge funds in the database of Insider Monkey held stakes worth $156 million in Bumble Inc. (NASDAQ:BMBL), compared to 17 in the previous quarter worth $233.8 million.
In its Q2 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Bumble Inc. (NASDAQ:BMBL) was one of them. Here is what the fund said:
“Online dating company Bumble Inc. (NASDAQ:BMBL) has been successfully executing its core strategic priorities focused on driving scale and engagement, monetization, and profitability. We are excited about the market potential for online dating and believe Bumble can take share and leverage its brand in adjacent categories. This is a category we believe should be resilient no matter what happens with the economy.”
3. Affirm Holdings, Inc. (NASDAQ:AFRM)
Number of Hedge Fund Holders: 27
Affirm Holdings, Inc. (NASDAQ:AFRM) operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. It is one of the premier IPO stocks to invest in. On September 22, the firm announced that it had extended their services on Amazon by introducing a new payment option of pay over time for the customers in Canada. This option will provide flexibility and transparency for customers.
On September 7, Morgan Stanley analyst James Faucette maintained an Overweight rating on Affirm Holdings, Inc. (NASDAQ:AFRM) stock and lowered the price target to $53 from $80, noting the choppy near-term credit performance of the firm.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Affirm Holdings, Inc. (NASDAQ:AFRM), with 4.1 million shares worth more than $74 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Affirm Holdings, Inc. (NASDAQ:AFRM) was one of them. Here is what the fund said:
“We recently covered our short position in Affirm Holdings, Inc. (NASDAQ:AFRM) after a rapid decline brought the share price to ~$30 – down from our entry point above $100 – in only 7 months. We discussed Affirm in our Q4 letter, saying the following:
Affirm is a “Buy Now, Pay Later” (BNPL) company founded by former PayPal CTO and cofounder Max Levchin. They provide installment loans to consumers, partnering with retail companies looking to drive higher sales. They have two primary products: a zero-fee installment loan for consumers with the best credit scores, and a more traditional product with 20%+ interest rates for subprime borrowers. Their stated plan is to disrupt the credit industry with more transparent, lower-fee loans. At a roughly $28b market cap at the start of 2022, AFRM stock was priced at more than 20x trailing sales, a steep price for a money-losing lender. While their early lead in online BNPL transactions and partnerships with fast-growing retailers like Peloton has fueled significant historical growth, a wave of competition has arrived… While the stock has already fallen sharply from where we initiated our short position, we think it could fall another ~40% to trade at 8x FY2022 sales.”
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)
1. Coupang, Inc. (NYSE:CPNG)
Number of Hedge Fund Holders: 37
Coupang, Inc. (NYSE:CPNG) owns and operates an e-commerce business through its mobile applications and Internet websites primarily in South Korea. It is one of the elite IPO stocks to invest in. On August 15, Morgan Stanley analyst Seyon Park maintained an Overweight rating on Coupang, Inc. (NYSE:CPNG) stock and raised the price target to $25 from $18, noting that the company was scaling high margin ads and driving a faster EBITDA trajectory.
At the end of the second quarter of 2022, 37 hedge funds in the database of Insider Monkey held stakes worth $2.9 billion in Coupang, Inc. (NYSE:CPNG), compared to 39 in the previous quarter worth $3.8 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Coupang, Inc. (NYSE:CPNG) was one of them. Here is what the fund said:
“During the quarter, we also added to our position in the leading Korean e-commerce player, Coupang, Inc. (NYSE:CPNG), taking advantage of the stock’s volatility. While the stock sold off, the business remains robust, growing revenues by 32% in the most recent quarter (year-over-year in constant currency) while gaining market share (the industry grew 8%) and reaching profitability in its product commerce segment three quarters ahead of plan.”
You can also take a peek at 10 Best Stocks to Buy According to Angela Aldrich’s Bayberry Capital Partners and Top 10 Tech Stocks to Buy According to Billionaire Louis Bacon.
