This article presents an overview of the 5 Penny Stocks that Captured the Attention of Billionaires. For a detailed overview of such stocks, read our article 13 Penny Stocks that Captured the Attention of Billionaires.
5. Evolv Technologies Holdings Inc (NASDAQ:EVLV)
Number of Billionaire Investors: 10
Evolv Technologies Holdings Inc (NASDAQ:EVLV) uses AI for security screening. A total of 10 billionaires in Insider Monkey’s database had stakes in Evolv Technologies Holdings Inc (NASDAQ:EVLV) as of the end of the September quarter. According to Evolv Technologies Holdings Inc’s (NASDAQ:EVLV) third quarter results, Evolv Technologies Holdings Inc’s (NASDAQ:EVLV) revenue in the period increased by about 22% year over year.
Evolv Technologies Holdings Inc (NASDAQ:EVLV) talked about its state of business and future expectations during Q3 earnings call:
Specifically, we remain on pace to deliver our ARR growth of at least 115% in 2023. While we’re still in the planning stages for next year, our preliminary models are focused on delivering another very strong year in 2024 with expected ARR growth of about 50%. That would drive us to well over $100 million in ARR in 2024 with gross margins of about 60% and accelerating leverage from our investments.
We believe this would put us in an excellent position to reach positive adjusted EBITDA in the first half of 2025 without the need of any additional capital. There are several drivers for our industry-leading growth, most importantly the pressing need for improved security. Every day we all see the reports of escalating gun violence in the very places that should be free of firearms; schools, hospitals, warehouses, stadiums and places of worship; but it’s in these very same places where we expect yet another year of tragic gun violence. In fact in 2023, we’ve had 597 mass shootings so far this year including the recent tragedy in Lewiston, Maine, just three hours north of us here in Boston, which took the lives of 18 innocent people and wounded many more.
Read the full earnings call transcript here.
4. Vimeo Inc (NASDAQ:VMEO)
Number of Billionaire Investors: 10
Video platform company Vimeo Inc (NASDAQ:VMEO) has been gaining billionaires’ attention this year, and for the right reasons. During the third quarter Vimeo Inc’s (NASDAQ:VMEO) revenue came in at $106.3 million. While it was a decline as compared to last year, it beat analyst estimate of $101.2 million.
“Bookings grew for the first time in 2023, and our revenue growth improved from down 8% in Q2 to down 2%. Importantly, we improved our year-over-year bookings and revenue trajectory in our biggest product area, Self-Serve & Add-Ons, something we know we must do at a sustained level to regain total bookings and revenue growth over time,” Vimeo said in a shareholder letter.
Jefferies praised Vimeo Inc’s (NASDAQ:VMEO) execution and set a Buy rating on the stock.
Longleaf Partners Small-Cap Fund made the following comment about Vimeo, Inc. (NASDAQ:VMEO) in its Q2 2023 investor letter:
“We exited Vimeo, Inc. (NASDAQ:VMEO) and long-term position Lumen in the quarter, both of which were disappointing investments that resulted in a permanent capital loss in the portfolio. At Vimeo we initially misjudged how much of a COVID beneficiary the business had been, and our sum of the parts valuation proved to be too generous for some of the underlying assets that were less differentiated than we originally believed.”
3. Diversified Healthcare Trust (NASDAQ:DHC)
Number of Billionaire Investors: 10
Diversified Healthcare Trust (NASDAQ:DHC) is a REIT that focuses on healthcare properties. Last month Diversified Healthcare Trust (NASDAQ:DHC) posted Q3 results. FFO in the period came in at $0.03, missing estimates by $0.04. Revenue in the quarter increased by about 10.4% year over year to $356.52 million, missing estimates by $0.45 million.
As of the end of the third quarter of 2023, 10 billionaires in Insider Monkey’s database had stakes in Diversified Healthcare Trust (NASDAQ:DHC).
2. Entravision Communications Corp (NYSE:EVC)
Number of Billionaire Investors: 10
American media company Entravision Communications Corp (NYSE:EVC) operates TV and radio stations with a focus on Spanish language programming. The stock jumped in October after Entravision Communications Corp (NYSE:EVC) entered into a deal with Pinterest. As part of the deal, the TV company Entravision Communications Corp (NYSE:EVC) will offer services to advertisers in countries worldwide where Pinterest isn’t currently serving ads.
As of the end of the third quarter of 2023, 10 billionaires reported owning stakes in Entravision Communications Corp (NYSE:EVC) as of the end of the third quarter of 2023. The biggest hedge fund stakeholder of Entravision Communications Corp (NYSE:EVC) was Chuck Royce’s Royce & Associates which owns a $12 million stake in Entravision Communications Corp (NYSE:EVC).
1. OPKO Health Inc (NASDAQ:OPK)
Number of Billionaire Investors: 11
Medical diagnostics company OPKO Health Inc (NASDAQ:OPK) tops our list of the penny stocks gaining billionaire attention this year. A total of 11 billionaires in Insider Monkey’s proprietary database had stakes in OPKO Health Inc (NASDAQ:OPK).
Some notable billionaires having stakes in OPKO Health Inc (NASDAQ:OPK) are D. E. Shaw, Steve Cohen and Israel Englander.
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