5 Famous Tech Stocks at a Bargain Today

1. RingCentral, Inc. (NYSE:RNG)

Number of Hedge Fund Holders: 47

Decline in Share Price Over Past Month: 33.73%  

RingCentral, Inc. (NYSE:RNG) provides software solutions. At the end of the fourth quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in RingCentral, Inc. (NYSE:RNG), compared to 48 in the preceding quarter worth $2.9 billion.

RingCentral, Inc. (NYSE:RNG) posted earnings for the fourth quarter of 2021 on February 22, reporting earnings per share of $0.39, beating estimates by $0.02. The revenue over the period was $448 million, beating expectations by $13 million. 

Here is what Baron Opportunity Fund has to say about RingCentral, Inc. (NYSE:RNG) in its Q2 2021 investor letter:

“RingCentral, Inc. (NYSE:RNG) has been a three-year portfolio holding and remains a leader in the cloud unified communications-as-a-service (UCaaS) space, which includes voice, video, messaging, and call center services. But after posting its third quarter in a row of accelerating revenue growth in the first quarter, RingCentral’s shares began to sell off on fears around heightened competition with both Microsoft Teams, of which RingCentral, Inc. (NYSE:RNG) is a partner, and with Zoom Communications, a former partner who has launched its own voice communications offering. Shares sold off further during the period with the rotation out of secular growth names into cyclicals. We used the pullback in the shares to add significantly to our position given RingCentral’s best-in-class UCaaS technology, including five 9’s contractual service commitments (fully operational 99.999% of the time) for voice, which is orders of magnitude above its competitors; presence in roughly 40 countries; data governance and security requirements; number portability with all the relevant domestic and international carriers; and positioning as the Gartner Magic Quadrant UCaaS Leader. The UCaaS market is still quite early in its adoption curve, with only about 3% penetration of the roughly 400 million existing business landline seats in operation today. We believe RingCentral, Inc. (NYSE:RNG) is in a solid position to capture meaningful share of this market, with its exclusive partnerships with legacy landline players like Avaya, Atos, and Alcatel, which effectively gives it a “hunting license” for about half of those 400 million legacy seats, leveraging joint go-to-market efforts with each partner. We remain confident that RingCentral is well positioned to achieve at least 30% top-line growth for years to come, along with steadily improving operating margins and free cash flow generation.”

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