In this article, we discuss the 5 famous tech stocks that are trading at a discount today. If you want to read about some more tech stocks that are trading at bargain prices, go directly to 10 Famous Tech Stocks Trading At Discount Today.
5. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 110
Decline in Share Price Over Past Six Months: 53.44%
PayPal Holdings, Inc. (NASDAQ:PYPL) provides digital payments services. As the stock slides amid a larger lull around growth equities, the company has been busy beefing up initiatives in the crypto sector to take advantage of the rapid growth in the industry. The firm plans to raise fees on crypto trades of over $200 to “remove the complexity of percentage-based calculations for the consumer”. It has also been actively helping war-weary Ukrainians use the platform to transfer money across borders, highlighting the role crypto could play in conflicts of the future.
On March 30, Goldman Sachs analyst Michael Ng initiated coverage of PayPal Holdings, Inc. (NASDAQ:PYPL) stock with a Buy rating and a price target of $144, backing the firm to deliver earnings growth of more than 20% beyond 2022. The analyst cited the digitization of payments and ecommerce growth as some of the main growth drivers of the firm.
At the end of the fourth quarter of 2021, 110 hedge funds in the database of Insider Monkey held stakes worth $9.9 billion in PayPal Holdings, Inc. (NASDAQ:PYPL), compared to 123 in the preceding quarter worth $12.8 billion.
In its Q3 2021 investor letter, RGA Investment Advisors LLC, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:
Stocks move with far more volatility to both the upside and downside than do the businesses themselves. Great businesses often go long periods of time without moving at all in the market, and then make large moves in very sudden fashion. Some people may try to anticipate exactly when these large moves will happen, but we think that is far more akin to astrology than sound business analysis…
We have owned shares in PayPal Holdings, Inc. (NASDAQ:PYPL) since the company was spun off from eBay in 2015. In aggregate, price has moved upward, quite powerfully during our tenure; however, this upside was essentially achieved in two somewhat brief pulses that cover less than half of our tenure with the stock. The rest of the time, price chopped around in ranges. These ranges are periods of tension, where the fundamentals continue to chug along but the stock price must digest. Some periods of tension are fairly quiet, while others include both steep up and down moves along the way. Some end up being brief resets, others might persist for two plus years. The key underlying truth is that if the business remains sound, and in the case of PayPal Holdings, Inc. (NASDAQ:PYPL), we think it is incredibly sound, the journey of rising stock prices will once again resume when the stock is ready. We are not market timers and thus cannot be sure as to when a stock might be ready, but value is inevitably the force that operates on a company’s stock and that force cannot help but exert its will over longer periods of time.
Thus, as we sit here today, a new year brings new opportunities, and the forward return profile of our portfolio looks as strong as it has been in some time.”
4. Salesforce.com, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 110
Decline in Share Price Over Past Six Months: 20.35%
Salesforce.com, Inc. (NYSE:CRM) is an application software firm. The company posted earnings for the fourth quarter of 2021 on March 1, beating market estimates on earnings per share and revenue by $0.09 and $80 million. The company also raised the guidance of the 2023 fiscal year to $32 billion against consensus estimates of $31 billion. As work from home trends grow, the company looks best positioned among peers in the tech industry to take advantage of digital workflows as it boosts a variety of top products, like Slack, in this regard.
On March 2, Wedbush analyst Daniel Ives kept an Outperform rating on Salesforce.com, Inc. (NYSE:CRM) stock with a price target of $275, appreciating the solid earnings beat of the firm and underlining that the risk/reward on the stock was very compelling owing to “cloud stalwart status and margin trajectory over the next few years”.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Salesforce.com, Inc. (NYSE:CRM) with 14.5 million shares worth more than $3.7 billion.
In its Q4 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Salesforce.com, Inc. (NYSE:CRM) was one of them. Here is what the fund said:
“Salesforce.com, Inc. (NYSE:CRM) reported solid revenue growth, including accelerated growth in the company’s largest and most mature product, Sales Cloud. However, shares underperformed due to unexpected weakness in the company’s MuleSoft application integration business that we believe is attributable to temporary missteps in the company’s selling efforts. The company also provided slightly weak guidance for billed but not earned business growth. In our experience, this metric can be influenced by timing issues and is often not fully representative of underlying demand for the company’s offerings.”
3. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 113
Decline in Share Price Over Past Six Months: 36.92%
Netflix, Inc. (NASDAQ:NFLX) provides entertainment services. As the streaming growth of the firm slows, it has started to expand in other digital entertainment sectors, like gaming. As part of a push into gaming, the company announced on March 24 that it had agreed to acquire Boss Fight Entertainment, a gaming house founded in 2013 with branches in Allen, Austin and Seattle. Some of the famous games Boss Fight has worked on include Dungeon Boss, CastleVille, Age of Empires and Rise of Nations, among others.
On March 23, Cowen analyst John Blackledge maintained an Outperform rating on Netflix, Inc. (NASDAQ:NFLX) stock, noting that the firm was poised to grow revenue in the coming months if the results of a password sharing policy change test were positive. The analyst noted that the change in policy, if rolled out globally, would add over $1.6 billion in revenue for the company.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Netflix, Inc. (NASDAQ:NFLX) with 4.6 million shares worth more than $2.4 billion.
In its Q4 2021 investor letter, Pershing Square Capital Management, an asset management firm, highlighted a few stocks and Netflix, Inc. (NASDAQ:NFLX) was one of them. Here is what the fund said:
“Amidst a volatile market backdrop in 2022, hedging gains provided the capital to fund the purchase of Netflix, Inc. (NASDAQ:NFLX). World’s leading streaming subscription video-on-demand company. Launched its category-pioneering streaming service in 2007. 222 million global paid subscribers in over 190 countries today. Vast and diverse library of high-quality content. Most Emmy-winning and Oscar-winning TV network / studio of 2021. Industry-leading volume of original content episodes released per quarter. High-performance culture led by a visionary management team. Subscription-based, highly recurring revenues. 26% annual streaming revenue growth and ~360 bps of average annual EBIT margin expansion over last three years. Modest financial leverage (1.5x Net Debt / EBITDA)…” (Click here to see the full text)
2. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 153
Decline in Share Price Over Past Six Months: 18.90%
Uber Technologies, Inc. (NYSE:UBER) owns and runs a ride-hailing platform. The company is trading at close to 30% below the price at the initial offering. This represents a compelling buying opportunity since the firm has used the pandemic year to dramatically transform the business, lowering operational costs and generating a profit for the first time in late 2021. It has also invested 12% of the market cap in net cash and equities. As post-pandemic demand surges, the shares have lots of room to go higher in the coming months.
On March 24, Stifel analyst Scott Devitt kept a Buy rating on Uber Technologies, Inc. (NYSE:UBER) stock with a price target of $48, highlighting that a recent deal by the firm to merge the software of competitors like Creative Mobile Technologies and Curb Mobility with Uber would “strengthen relationships with local municipalities and help with driver supply” in addition to reducing competition.
Among the hedge funds being tracked by Insider Monkey, Boston-based Altimeter Capital Management is a leading shareholder in Uber Technologies, Inc. (NYSE:UBER) with 1.5 million shares worth more than $482 million.
ClearBridge Investments, in its Q4 2021 investor letter, mentioned Uber Technologies, Inc. (NYSE:UBER). Here is what the fund has to say in its letter:
“We have also been looking for multiyear secular trends outside of the IT and Internet sectors to help us maintain a portfolio that can perform well in markets with varied sector or factor leadership. In particular, electrification of the global economy and the transition to electric vehicles (EVs) are areas where we continue to add exposure. We are investing in the brains behind EVs through NXP in the control center and Aptiv for safety features. Global rideshare leader Uber Technologies, Inc. (NYSE:UBER) will also be a key player in the transition from internal combustion engines to EVs.”
1. Meta Platforms, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 224
Decline in Share Price Over Past Six Months: 32.79%
Meta Platforms, Inc. (NASDAQ:FB) is a diversified technology firm. It has pivoted from a social media-based presence to a more multiverse-focused entity in recent months, even changing the brand name from Facebook to Meta. The change has not helped the firm stop a massive slide in the share price, although the worst seems to be over as investors realize the marketing potential that the billions of users on platforms like WhatsApp, Facebook, and Instagram offer to businesses.
On March 25, UBS analyst Lloyd Walmsley kept a Buy rating on Meta Platforms, Inc. (NASDAQ:FB) stock with a price target of $280, highlighting that newsfeed changes from the firm would lead to higher monetization and a 6% upside in revenue in the first six months of 2022.
At the end of the fourth quarter of 2021, 224 hedge funds in the database of Insider Monkey held stakes worth $3.1 billion in Meta Platforms, Inc. (NASDAQ:FB), compared to 248 in the preceding quarter worth $3.8 billion.
In its Q4 2021 investor letter, Boyar Value Group, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:
“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Meta Platforms, Inc. (NASDAQ:FB), while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
