In this article, we’ll discuss Jim Cramer’s 5 most favorite tech stocks to buy now. If you want to read our detailed analysis of Cramer’s background and tech stocks, go directly to read Jim Cramer’s Most Favorite Tech Stocks to Buy Now.
5. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 73
An American multinational cybersecurity company, Palo Alto Networks, Inc. (NASDAQ:PANW) experienced a positive hedge fund sentiment in Q3, as 73 hedge funds in Insider Monkey’s database were bullish on the company, up from 69 in Q2. The value of the stakes also jumped to roughly $5.9 billion in Q3, from $4.7 billion reported in the previous quarter.
Palo Alto Networks, Inc. (NASDAQ:PANW) remains one of the most notable Jim Cramer stocks as he believes that investors should focus on online security, considering the persistent cybersecurity issues, even in the major organizations. He has named Palo Alto Networks, Inc. (NASDAQ:PANW) as his best pick in the cybersecurity space.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 83
Jim Cramer has always been bullish on NVIDIA Corporation (NASDAQ:NVDA) and recently asserted that the stock exhibits a growth potential to become a $10 trillion stock. The multinational technology company remained his favorite due to growing artificial intelligence deployment, as he regarded it as one of the unique platforms for machine learning.
Recently, Tigress Financial lifted its price target on NVIDIA Corporation (NASDAQ:NVDA) to $400, with a Buy rating on the shares, highlighting its continued strength in the data center and gaming sector.
Harding Loevner mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2021 investor letter. Here is what the firm has to say:
“The proliferation of devices using chips, whether EVs, “things” in lol, or embedded systems more generally, results in the generation of oceans of data potentially needing to be stored, processed, and analyzed. NVIDIA, the leading chip designer wellknown for its graphic processing units and its complementary CUDA software ecosystem, is at the forefront of the effort to provide the analytical platform needed to unlock the full potential of such specialist processors.”
3. Square, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 98
Recently, Jim Cramer called Square, Inc. (NYSE:SQ) one of the purpose-driven companies owing to the stock’s consistent performance. Moreover, he appreciated the company’s growing cryptocurrency-focused business. In Q3, Square, Inc. (NYSE:SQ) reported $3.84 billion in revenue, up 26.7% from the prior-year quarter. Moreover, the company’s gross payment volume reached $45.4 billion during the quarter.
Recently, BofA upgraded Square, Inc. (NYSE:SQ) to Neutral, with a $221 price target, highlighting the company’s CashApp business. Cathie Wood’s ARK Investment Management was the company’s leading shareholder in Q3, owning shares worth $1.4 billion.
RiverPark Funds mentioned Square, Inc. (NYSE:SQ) in its Q1 2021 investor letter. Here is what the firm has to say:
“We established a position in leading Financial Technology provider Square during the quarter. Through one integrated system, SQ is a hybrid of two businesses: its Seller Business (charging small and medium-sized businesses about 3% for transaction payment processing, plus other services such as instant funds access, and software for everything from customer engagement to payroll), and its Cash App (originally for person-to-person cash transfers and now a growing digital financial services provider for consumers).
The combined business has grown gross profit at a 37% CAGR over the past five years to $2.7 billion (due to pass through costs, gross profit is more reflective of top-line growth) and we believe that the company has an enormous long-term runway, as it has less than a 2% share of a more than $160 billion market. It is our view that the company’s Cash App (which has grown
from nothing in 2015 to $1.2 billion gross profit last year) has a particularly large opportunity with its powerful ecosystem of digital financial services including digital wallets, direct deposits, stock trading, bitcoin trading, and business and tax services, which are all relatively new. The vast majority of Cash App’s more than 36 million users are younger and, importantly, are willing to replace their bank and other financial services accounts with the app.We estimate that the company can grow its gross profit more than 30% and EBITDA more than 50% annually for the foreseeable future, and while most of the company’s current profit is from its Seller Business, we believe most of Square’s future value will be from its Cash App business.”
2. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 123
PayPal Holdings, Inc. (NASDAQ:PYPL) is another name in the fintech sector that is lauded by Jim Cramer due to its strong business, even though the stock plunged in 2021. Moreover, the company also shows great growth potential as the fintech sector is expected to replace traditional credit card payments.
Of the 867 hedge funds tracked by Insider Monkey, 123 hedge funds held stakes in PayPal Holdings, Inc. (NASDAQ:PYPL) in Q3, compared with 143 in the previous quarter. The total value of these stakes is over $12.8 billion.
Recently, UBS assumed its coverage on PayPal Holdings, Inc. (NASDAQ:PYPL) with a Buy rating and a $263 price target. According to the firm’s analyst, the recent pullback in the shares presents a buying opportunity as the company will benefit from growing digital payments. In Q3, PayPal Holdings, Inc. (NASDAQ:PYPL) recorded over 13.3 million new accounts, up from 11.4 million accounts in the previous quarter.
Baron Funds recently published its Q3 2021 investor letter and mentioned PayPal Holdings, Inc. (NASDAQ:PYPL) in it. Here is what the firm has to say:
“PayPal Holdings, Inc. enables digital payments for consumers and merchants worldwide. Shares fell on quarterly financial results and guidance that were below investor expectations due to a faster roll-off of eBay business, which should only be a temporary headwind. PayPal also announced the acquisition of Paidy, the leading buy-now-pay-later provider in Japan, which expands PayPal’s addressable market into a fast-growing category. We remain investors because we believe PayPal is a prime beneficiary of the secular growth of e-commerce and digital financial services.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 242
With the lingering fears of Covid’s new variant, Omicron, Jim Cramer places his confidence in Amazon.com, Inc. (NASDAQ:AMZN) in case of a possible economic slowdown in the future. He further acknowledged the company’s strong position in global cloud infrastructure.
With the company’s growing Web Services segment, recently, UBS assumed its coverage on Amazon.com, Inc. (NASDAQ:AMZN) with a Buy rating and a $4,700 price target.
Of the 867 hedge funds tracked by Insider Monkey, 242 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) in Q3, compared with 271 in the previous quarter. These stakes hold a consolidated value of over $42.5 billion.
Davis Funds mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter. Here is what the firm has to say:
“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”
You can also take a look at 10 Best Biotech Stocks To Buy For 2021 and Top 10 Undervalued Tech Stocks
