In this article, we will take a look at the 5 most promising new technology stocks according to analysts. To see more such companies, go directly to 12 Most Promising New Technology Stocks According to Analysts.
5. Full Truck Alliance Co. Ltd. (NYSE:YMM)
Number of Hedge Fund Holders: 17
Estimated One-Year Price Target: $11.97
Full Truck Alliance Co. Ltd. (NYSE:YMM) operates a digital freight platform. According to reports published in December, the China-based company called off its plans for a Hong Kong listing. In November, Full Truck Alliance Co. Ltd. (NYSE:YMM) posted its third-quarter results. Adjusted EPADS in the period came in at $0.07, beating estimates by $0.04. Revenue in the quarter jumped about 32% on a YoY basis to reach $254.2 million, beating estimates by $10.9 million. Full Truck Alliance Co. Ltd. (NYSE:YMM) said that its Gross Transaction Value in the September quarter increased by about 3.5% YoY to reach $9.8 billion.
As of the end of the third quarter of 2022, 17 hedge funds out of the 920 funds tracked by Insider Monkey reported having stakes in Full Truck Alliance Co. Ltd. (NYSE:YMM). The total value of these stakes was over $454 million. The biggest stakeholder of Full Truck Alliance Co. Ltd. (NYSE:YMM) during this period was Thomas Steyer’s Farallon Capital with a $296 million stake.
4. Aurora Innovation, Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 22
Estimated One-Year Price Target: $4.46
Autonomous driving technology company Aurora Innovation, Inc. (NASDAQ:AUR) ranks 4th in our list of the most promising new technology stocks according to analysts. The Pennsylvania-based company shares have gained about 55% year to date through February 20. Earlier this month Aurora Innovation, Inc. (NASDAQ:AUR) posted its full-year 2022 and Q4 results. GAAP EPS in the quarter came in at -$0.25.
Aurora Innovation, Inc. (NASDAQ:AUR) is one of those low-cost stocks that can grow big and reward long-term investors. However, given the current market situation, the rewards might take some time to realize. Aurora Innovation, which went public back in 2021, expects to keep losing money until 2027 as it invests in its self-driving technologies for trucks and cars. According to The Verge, Aurora Innovation, Inc. (NASDAQ:AUR) has plans to sell its hardware and software to other companies instead of maintaining its own vehicle fleet.
3. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 24
Estimated One-Year Price Target: $23.23
AppLovin Corporation (NASDAQ:APP) is known for its platform for mobile app developers. AppLovin Corporation (NASDAQ:APP) recently jumped after the company posted its fourth quarter results and gave a strong Q1 guidance. While revenue in the fourth quarter fell 11.4% on a YoY basis, it still beat estimates by $11.83 million. For the first quarter of 2023, AppLovin Corporation (NASDAQ:APP) expects its revenue to come in the range of $685 million to $705 million, versus the consensus estimate of $677.13 million.
In November, Jefferies analyst Brent Thill started covering AppLovin Corporation (NASDAQ:APP) with a Hold rating. The analyst said that he doesn’t think mobile advertising is “broken long-term” after platform policy changes.
Vulcan Value Partners made the following comment about AppLovin Corporation (NASDAQ:APP) in its Q3 2022 investor letter:
“We fully exited AppLovin Corporation (NASDAQ:APP). AppLovin was a mistake that we were still trading and therefore did not discuss in our second quarter letter. AppLovin owns a portfolio of over 300 mobile games and operates an advertising platform for third party gaming apps. Our investment case hinged on the company’s advertising platform data from the owned games business which we believed was its key competitive advantage. Through our recent research, we concluded that management is likely planning to restructure or sell all or some of the owned games business. In addition, while we thought AppLovin’s second quarter results were good, with revenue up 16%, the company lowered guidance on its long-term organic growth opportunity. To achieve their long-term plans, the company is relying on new initiatives which we would categorize as early stage. As our understanding of a company’s competitive advantage changes, we reevaluate the business to determine how this affects our investment thesis. For AppLovin, we determined that the company’s competitive advantage was not as strong as we once thought, and we followed our discipline by selling AppLovin and redeploying capital into companies that we believe have more stable values and attractive margins of safety.”
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.”
1. Marqeta, Inc. (NASDAQ:MQ)
Number of Hedge Fund Holders: 33
Estimated One-Year Price Target: $9.35
Payments solutions company Marqeta, Inc. (NASDAQ:MQ) ranks 1st in our list of 12 most promising new technology stocks according to analysts. During the third quarter Marqeta, Inc. (NASDAQ:MQ)’s GAAP EPS came in at -$0.10, missing estimates by $0.01. Revenue in the quarter jumped about 46% YoY to reach $191.62 million, beating estimates by $10.72 million. Gross margin in the period jumped about 42% in the quarter. For the fourth quarter, Marqeta, Inc. (NASDAQ:MQ) was expecting net revenue growth of 29% to 31%, better than the consensus estimate of 22.91%.
Last month, Marqeta, Inc. (NASDAQ:MQ) announced that it agreed to buy credit card management platform Power Finance for $275 million.
A total of 33 hedge funds tracked by Insider Monkey as of the end of the third quarter of 2022 reported owning shares of Marqeta, Inc. (NASDAQ:MQ). The total value of these stakes was $656 million.
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