In this article, we will take a look at the 5 most undervalued cloud stocks under $10 according to hedge funds. To see more such companies, go directly to 10 Most Undervalued Cloud Stocks Under $10 According To Hedge Funds.
5. AvePoint, Inc. (NASDAQ:AVPT)
Number of Hedge Funds: 14
AvePoint, Inc. (NASDAQ:AVPT) is a New Jersey-based software company that sells solutions that help companies migrate, manage and protect data in Microsoft 365. AvePoint, Inc. (NASDAQ:AVPT)’s Cloud platforms helps companies save a lot of costs in Cloud management and backups. According to AvePoint, Inc. (NASDAQ:AVPT)’s own estimates, a 5,000-user customer of Cloud Backup can save as much as $2 for every $1 spent compared to customers using self-hosted backup solutions.
AvePoint, Inc. (NASDAQ:AVPT) has a client retention rate of 100%. In the third quarter, AvePoint, Inc. (NASDAQ:AVPT)’s revenue jumped about 16% on a YoY basis. SaaS revenue in the period was $30 million, which shows a 34% YoY growth. Total ARR in the period also saw a 30% growth.
For the fourth quarter, the cloud company said it expects revenue of $63 million to $65 million. This would show a 22% growth on a constant currency basis.
A total of 14 hedge funds tracked by Insider Monkey have stakes in AvePoint, Inc. (NASDAQ:AVPT) as of the end of the third quarter of 2022. The total worth of these stakes was over $36 million.
4. WM Technology, Inc. (NASDAQ:MAPS)
Number of Hedge Funds: 15
WM Technology, Inc. (NASDAQ:MAPS) is known for its e-commerce platform and services for the cannabis industry. WM Technology, Inc. (NASDAQ:MAPS) is also known as a cloud-based software as a service (SaaS) and data solutions company especially focused on the weed industry.
In 2021, WM Technology, Inc. (NASDAQ:MAPS) acquired Sprout, a leading, cloud-based CRM & marketing platform for the cannabis industry.
As of the end of the third quarter of 2022, 15 hedge funds out of the 920 funds tracked by Insider Monkey reported owning shares in WM Technology, Inc. (NASDAQ:MAPS). The net worth of these shares was about $27 million. The most significant stakeholder of WM Technology, Inc. (NASDAQ:MAPS) during this period was Richard Mashaal’s Rima Senvest Management which owns a stake worth about $12 million in the company.
3. Information Services Group, Inc. (NASDAQ:III)
Number of Hedge Funds: 15
Information Services Group, Inc. (NASDAQ:III) is a Connecticut-based IT services company that helps companies execute Cloud migration, optimize their Cloud performance and secure their digital assets in Cloud computing, in addition to providing other IT services.
Despite being a small company, Information Services Group, Inc. (NASDAQ:III) pays dividends.
In the third quarter, Information Services Group, Inc. (NASDAQ:III)’s adjusted EBITDA margin reached 16%, the highest in the company’s history. For the fourth quarter, Information Services Group, Inc. (NASDAQ:III) was expecting this figure to be between 14.5% to 15%.
At the end of the third quarter of 2022, 15 hedge funds out of the 920 funds tracked by Insider Monkey reported owning stakes in Information Services Group, Inc. (NASDAQ:III). The total worth of these stakes was about $38 million. The biggest stakeholder of Information Services Group, Inc. (NASDAQ:III) during this period was Gregg J. Powers’ Private Capital Management which had a $19.3 million stake in the company.
2. Zeta Global Holdings Corp. (NYSE:ZETA)
Number of Hedge Funds: 18
Zeta Global Holdings Corp. (NYSE:ZETA) is a data-driven marketing technology company. Zeta Global Holdings Corp. (NYSE:ZETA)’s Cloud platform, Zeta Data, processes data of about 235 million opted-in individuals in the U.S. and more than 525 million opted-in individuals globally. Zeta Global Holdings Corp. (NYSE:ZETA)’s platform from this data uses important personally identifiable information (PII) such as name, address, and email, with digital identifiers such as cookies, MAIDs, and device IDs. All of this helps marketers make data-based decisions to optimize the results of their marketing efforts.
A total of 18 hedge funds tracked by Insider Monkey reported having stakes in Zeta Global Holdings Corp. (NYSE:ZETA) at the end of the third quarter of 2022.
1. Rimini Street, Inc. (NASDAQ:RMNI)
Number of Hedge Funds: 18
Rimini Street, Inc. (NASDAQ:RMNI) is a Nevada-based software company. Rimini Street, Inc. (NASDAQ:RMNI)’s Cloud operations include consultancy services to customers regarding Cloud migration, Cloud security, performance, interoperability, and data integration. Rimini Street, Inc. (NASDAQ:RMNI) also offers Cloud-based ERP solutions.
Rimini Street, Inc. (NASDAQ:RMNI) has gained about 18% year to date. Of the 920 hedge funds tracked by Insider Monkey, 18 hedge funds reported owning stakes in Rimini Street, Inc. (NASDAQ:RMNI) as of the end of the third quarter of 2022. The total value of these stakes was $130.3 million. The biggest stakeholder of Rimini Street, Inc. (NASDAQ:RMNI) during this period was Jeffrey Diehl’s Adams Street Partners which has a stake worth about $110 million in the company.
Diamond Hill Capital made the following comment about Rimini Street, Inc. (NASDAQ:RMNI) in its Q4 2022 investor letter:
“Bottom contributors in Q4 included Rimini Street, Inc. (NASDAQ:RMNI) and Wolverine World Wide (WWW). Shares of IT services company Rimini Street were pressured as the company’s ongoing restructuring of its global sales team has weighed on billings. The company, which offers third-party support and maintenance for enterprise software like Oracle and SAP products, offers its clients a compelling value proposition at a steep discount relative to the software providers themselves. We believe Rimini Street will be able to drive attractive levels of revenue growth once it has worked through the near-term growing pains associated with its sales team restructuring.”
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