5 Most Promising New Technology Stocks According to Analysts

2. Vimeo, Inc. (NASDAQ:VMEO)

Number of Hedge Fund Holders: 30

Estimated One-Year Price Target: $7.25

Video platform Vimeo, Inc. (NASDAQ:VMEO) ranks 2nd in our list of promising new tech stocks according to analysts. Year to date Vimeo, Inc. (NASDAQ:VMEO) has gained about 18% through February 20.

In January, Vimeo, Inc. (NASDAQ:VMEO) announced that it will lay off 11% of its global workforce to “become sustainably profitable.” Vimeo, Inc. (NASDAQ:VMEO) said that almost all departments will be affected, with the biggest layoffs coming from sales and research teams. Vimeo, Inc. (NASDAQ:VMEO)’s CEO said Vimeo was entering “2023 with a more focused strategy to simplify Vimeo, and ultimately, our team size and composition needs to reflect that focus.”

Of the 920 hedge funds tracked by Insider Monkey, 30 hedge funds reported owning stakes in Vimeo, Inc. (NASDAQ:VMEO). The total value of these stakes was about $138 million. The biggest stakeholder of Vimeo, Inc. (NASDAQ:VMEO) during this period was Mason Hawkins’ Southeastern Asset Management which had a $45.2 million stake in the company.

Longleaf Partners Small-Cap Fund made the following comment about Vimeo, Inc. (NASDAQ:VMEO) in its Q4 2022 investor letter:

“Vimeo, Inc. (NASDAQ:VMEO) and Oscar – Digital software company Vimeo and US health insurance and software platform Oscar Health were both unduly punished this year alongside most tech-related businesses. We were too early at both companies, and our partners have not yet gone on offense to the degree we initially expected. Oscar grew too much, while Vimeo didn’t grow enough. Both still have key differentiating factors and the ability to control their own destiny, but we have been hesitant to take them back to full positions as our initial thesis has yet to play out. We are engaged with management teams at both companies to encourage proactive steps to close the value gap.”