We recently compiled a list of the 12 Best Tech Stocks to Buy Right Now Under $10. In this article, we are going to take a look at where Eventbrite Inc. (NYSE:EB) stands against the other tech stocks under $10.
Our list today highlights stocks that are priced under $10 and can offer opportunities for growth. These stocks offer diversification away from the typical large and mid-cap names with the use of lower capital. These stocks often belong to companies that are trying to create niche businesses or are in various stages of product evolution, including emerging growth firms and established businesses, giving tough competition to larger rivals. In our view, this space has the potential for high returns, particularly if these companies can successfully execute their business strategies and capitalize on market trends.
In the technology sector, many undervalued stocks are well-positioned to benefit from the ongoing trends of digital transformation, and transition to cloud and AI. Companies offering innovative software solutions, cybersecurity, and cloud services are anticipated to thrive as businesses continue to invest in technology to enhance their competitive position and security. By identifying promising companies in these areas, investors can potentially achieve good returns although with a little higher risk. That said, we believe that stock selection remains crucial in the small-cap space due to the volatility of these names. For comparison, the S&P SmallCap600 Index has underperformed the broader S&P500 Index over the last 3, 5, and 10 years which indicates that you might not get enough returns if you take a broader approach.
The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide. The integration of AI and ML is revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations globally are undergoing digital transformations to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and services.
Our Methodology
To shortlist the 12 Best Tech Stocks to Buy Right Now Under $10, we screened technology stocks with current share price below $10. We overlaid this criterion with additional criteria of market capitalization of at least $300 million and a potential upside of greater than 10%. The stocks were then arranged in ascending order of the number of hedge fund holders for each company, based on hedge fund data from Insider Monkey’s database.
Note: all pricing data is as of market close on February 6.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A solitary event creator, immersed in the company’s experience technology platform.
Eventbrite Inc. (NYSE:EB)
Current Market Price: $3.40; Upside Potential: 40%
Number of hedge funds: 23
Eventbrite Inc. (NYSE:EB) is a global ticketing and event technology platform that enables users to create, promote, and manage events of all sizes. The company offers a comprehensive suite of tools for event organizers, including ticketing solutions, event marketing, and analytics, catering to a diverse array of events such as concerts, festivals, conferences, and community gatherings. The platform also connects event seekers through its website and mobile application, allowing them to discover and purchase tickets for their chosen events and experiences.
Eventbrite Inc. (NYSE:EB) capitalizes on the rising popularity of live events and has been investing in its technology capabilities to enhance user experience and drive growth. With a strong focus on expanding its market presence and forming strategic partnerships, the company aims to capture a larger share of the growing events market. According to its Q3 2024 investor presentation, the company targets global mid-market events, which had $23 billion in gross bookings for FY 2023. Mid-market events constitute only one-third of the global events bookings of $80 billion, providing substantial room for growth. The increasing trend towards hybrid events, combining in-person and virtual experiences, is expected to further drive demand for Eventbrite Inc. (NYSE:EB)’s platform. Additionally, the company plans to focus on high-margin non-ticketing revenue growth to boost operating margins.
Overall EB ranks 9th on our list of the best tech stocks to buy under $10. While we acknowledge the potential of EB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than EB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
