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15 Best New Tech Stocks to Buy Now

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·15 min read
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In this article, we will take a look at the 15 best new tech stocks to buy now. You can skip our detailed analysis of the new tech stocks, and go directly to the 5 Best New Tech Stocks to Buy Now.

Financial markets are seeing a flurry of tech IPOs lately. According to a report by FactSet, the volume of IPOs doubled in 2020, presenting a 150% increase from 2019 levels. According to the financial data company, 494 IPOs were recorded in 2020, raising $174 billion.

Though 2020 was a year of uncertainties for most sectors due to the pandemic, investors turned bullish on the tech stocks due to the industry’s ability to adjust according to the new normal. The remote working policy by many major companies allowed the tech stocks to soar and reach new heights. In the past year, NASDAQ-100 Technology Sector gained 42.2%. Moreover, FactSet published a report which suggested that technology companies raised $34.3 billion in 15 IPOs in 2020.

In 2020, several tech companies went public, including big names like Airbnb, Inc. (NASDAQ: ABNB) and DoorDash, Inc. (NYSE: DASH). Colorado-based software company Palantir Technologies Inc. (NYSE: PLTR) was also one of the high-profile companies that went public in 2020.

The trend seems to continue in 2021 as many companies have already gone public through IPOs, SPACs, or direct listing in the first half of the year. The Renaissance IPO Index, a stock market index that consists of U.S.-listed newly public companies, has soared by 38.6% in the past year. The technology sector accounts for 46.9% of the Renaissance IPO Index.

Some of the tech companies that went public recently include Confluent, Inc. (NASDAQ: CFLT), SentinelOne, Inc. (NYSE: S), Coinbase Global, Inc. (NASDAQ: COIN), and UiPath Inc. (NYSE: PATH).

The crypto trading platform, Coinbase Global, Inc. (NASDAQ: COIN) managed to earn the largest valuation in 2021 so far with $86 billion following its direct listing. South Korea-based e-commerce company Coupang, Inc. (NYSE: CPNG) launched one of the biggest IPOs so far with a $60 billion valuation. Coupang, Inc. (NYSE: CPNG) managed to raise $4.6 billion in its IPO. UiPath Inc. (NYSE: PATH) went public on April 22 in one of the biggest US software IPOs, raising $1.3 billion.

There is no doubt in the fact that many investors prefer to participate in IPOs as the initial share price can be of good value. But investing in newly public companies can make or break your investment portfolio. According to financial analyst Doug Boneparth, IPOs do not determine which way the company is going in the future. Moreover, Forbes also published a report, asserting that 60% of recently public companies generated negative returns between 1975-2011. According to experts, researching about the stock and investing a small fraction of cash could help investors make big with the new companies. Before investing, investors should consider the risks, expenses, and charges carefully.

Photo by Nicol on Unsplash

Investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Our Methodology Let's analyze our list of the 15 best new tech stocks to buy now. We took into account tech companies that went public in 2021, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks. By "new tech stocks" we mean the tech companies that went public recently. As these companies went public recently, you will notice that many of them have no hedge funds having stakes in them, as of the end of the first quarter of 2021, based on our data of 866 hedge funds.

15 Best New Tech Stocks to Buy Now

15. Couchbase, Inc. (NASDAQ: BASE)

IPO Date: July 22, 2021 No. of Hedge Funds Having Stakes in the Company: N/A

Couchbase, Inc. (NASDAQ: BASE) is an American software company that deals in the high-performing modern databases used for interactive applications. Many of the world’s largest companies are the customers of Couchbase, Inc. (NASDAQ: BASE), which also includes over 30% of the Fortune 100 companies.

On July 22, Couchbase, Inc. (NASDAQ: BASE) had a solid IPO, raising over $200 million. The company’s Annual Recurring Revenue, or ARR, is growing at a CAGR of 26%, reaching $110 million in FY21. The consolidated revenue stood at $103.3 million. In Q1 FY22 Couchbase, Inc. (NASDAQ: BASE) generated $3.39 million in revenue, up 26.7% from the prior-year quarter. The stock has gained 4.2% since its IPO.

Like SentinelOne, Inc. (NYSE: S), Confluent, Inc. (NASDAQ: CFLT), Coupang, Inc. (NYSE: CPNG), Coinbase Global, Inc. (NASDAQ: COIN), UiPath Inc. (NYSE: PATH), Squarespace, Inc. (NYSE: SQSP), Airbnb, Inc. (NASDAQ: ABNB) and DoorDash, Inc. (NYSE: DASH), Couchbase, Inc. (NASDAQ: BASE) is one of the best new tech stocks to buy now.

14. Clear Secure, Inc. (NYSE: YOU)

IPO Date: June 29, 2021 No. of Hedge Funds Having Stakes in the Company: N/A

Clear Secure, Inc. (NYSE: YOU) is a technology company that specializes in secure identity platform that links individuals' personal information with biometric data. The company’s software offers security applications for airports and other venues. Clear Secure, Inc. (NYSE: YOU) was founded in 2010.

In FY20, Clear Secure, Inc. (NYSE: YOU) generated over $230.7 million in revenue, up from$192.2 million in 2019. In July. JPMorgan initiated its coverage on Clear Secure, Inc. (NYSE: YOU) with an ‘Overweight’ rating and a $52 price target.

The firm believes that the company reflects growth prospects and is expected to expand in adjoining markets. Stifel also initiated its coverage on the stock with a ‘Buy’ rating in July. Clear Secure, Inc. (NYSE: YOU) debuted on the stock market on June 30 and gained nearly 25% in its IPO. The stock has soared by 47.7% since then.

13. Shoals Technologies Group, Inc. (NASDAQ: SHLS)

IPO Date: January 27, 2021 No. of Hedge Funds Having Stakes in the Company: N/A

Shoals Technologies Group, Inc. (NASDAQ: SHLS) is a technology company that provides solutions in the electrical balance of systems or EBOS for solar energy projects. The main aim of the company is to reduce installation costs through EBOS solutions and is regarded as the first company to market ‘plug-n-play EBOS systems. Shoals Technologies Group, Inc. (NASDAQ: SHLS) was founded in 1996 and is headquartered in Portland, U.S.

In Q1 2021, Shoals Technologies Group, Inc. (NASDAQ: SHLS) reported revenue of $45.6 million, up from $40.7 million during the same period last year. Gross profit also increased 32% to $18.8 million, compared with $14.2 million in the prior-year quarter. For FY21, Shoals Technologies Group, Inc. (NASDAQ: SHLS) expects revenue in the range of $230 million to $240 million. In July, JPMorgan raised its price target on Shoals Technologies Group, Inc. (NASDAQ: SHLS) to $46, with an ‘Overweight’ rating on the shares.

Shoals Technologies Group, Inc. (NASDAQ: SHLS) went public on January 27 and raised $1.9 billion in its IPO. The stock has gained 6.68% since then.

Like SentinelOne, Inc. (NYSE: S), Confluent, Inc. (NASDAQ: CFLT), Coupang, Inc. (NYSE: CPNG), Coinbase Global, Inc. (NASDAQ: COIN), UiPath Inc. (NYSE: PATH), Squarespace, Inc. (NYSE: SQSP), Airbnb, Inc. (NASDAQ: ABNB) and DoorDash, Inc. (NYSE: DASH), Shoals Technologies Group, Inc. (NASDAQ: SHLS) is one of the best new tech stocks to buy now.

ClearBridge Investments released its first-quarter 2021 investor letter and mentioned Shoals Technologies Group, Inc. (NASDAQ: SHLS) in it. Here is what the firm has to say about SHLS:

Shoals Technologies, another new position, manufactures electric balance of systems (EBOS) components for ground-mounted solar projects and has been gaining market share for quality of service and price. The company has been primarily operating in the U.S. but is planning to expand internationally with its patented technology, and we see attractive secular growth in Shoals’s end markets.”

12. ZipRecruiter, Inc. (NYSE: ZIP)

IPO Date: May 26, 2021 No. of Hedge Funds Having Stakes in the Company: N/A

ZipRecruiter, Inc. (NYSE: ZIP) is an online job marketing company that uses AI-matching technology to carry out the process. The company’s online portal was designed to improve the job search experience for its users. ZipRecruiter, Inc. (NYSE: ZIP) was founded in 2010.

In Q1 2021, ZipRecruiter, Inc. (NYSE: ZIP) reported revenue of $125 million, presenting an 11% year-over-year growth. The company went public via a direct listing on May 26, 2021, with the stock soaring by 17% to $21 per share. For the second quarter, ZipRecruiter, Inc. (NYSE: ZIP) expects revenue in between $157 million to $163 million. Barclays initiated its coverage on the stock with an ‘Overweight’ rating and a $30 price target. The firm admired ZipRecruiter, Inc. (NYSE: ZIP) due to its deployment of AI-based matching software. The stock has soared by 33.3% since it went public.

Like SentinelOne, Inc. (NYSE: S), Confluent, Inc. (NASDAQ: CFLT), Coupang, Inc. (NYSE: CPNG), Coinbase Global, Inc. (NASDAQ: COIN), UiPath Inc. (NYSE: PATH), Squarespace, Inc. (NYSE: SQSP), Airbnb, Inc. (NASDAQ: ABNB) and DoorDash, Inc. (NYSE: DASH), ZipRecruiter, Inc. (NYSE: ZIP) is one of the best new tech stocks to buy now.

11. Monday.com Ltd. (NASDAQ: MNDY)

IPO Date: June 10, 2021 No. of Hedge Funds Having Stakes in the Company: N/A

Monday.com Ltd. (NASDAQ: MNDY) is an Israeli software company that specializes in a Cloud-based platform. With the help of the company’s software, Work OS, its consumers can easily build software applications and work management tools that according to their needs. Monday.com Ltd. (NASDAQ: MNDY) has over 110,000 customers worldwide and is headquartered in Tel Aviv.

In Q1 2021, Monday.com Ltd. (NASDAQ: MNDY) reported an 85% year-over-year growth in revenue at $59 million. The company went public on June 10 and raised over $574 million in an IPO. In July, Cowen analyst J. Derrick asserted that Monday.com Ltd. (NASDAQ: MNDY) has one of the highest growth rates among all of the software. The firm started its coverage on the stock with an ‘Outperform’ rating and a $275 price target. Needham is also positive on Monday.com Ltd. (NASDAQ: MNDY) and initiates its coverage on the stock with a ‘Buy’ rating.

Monday.com Ltd. (NASDAQ: MNDY) has soared by 24.06% since its IPO.

10. Procore Technologies, Inc. (NYSE: PCOR)

IPO Date: May 19, 2021 No. of Hedge Funds Having Stakes in the Company: N/A

Procore Technologies, Inc. (NYSE: PCOR) is an American construction company that provides services in construction management software. With the help of the company’s project management tools, the users can increase project efficiency by streamlining project communication and documentation. Procore Technologies, Inc. (NYSE: PCOR) has completed over 1 million projects, worth $1 trillion.

Procore Technologies, Inc. (NYSE: PCOR) announced Q2 2021 results on August 5 and reported a 27% year-over-year growth in revenue at $122.8 million. The company also reported addition of 481 new customers, reaching 11,149 customers at the end of Q2. Due to the strong results, Procore Technologies, Inc. (NYSE: PCOR) expects revenue in the range of $496 to $499 million in FY21. Recently, Canaccord lifted its price target on Procore Technologies, Inc. (NYSE: PCOR) to $110, with a ‘Buy’ rating on the shares.

In June, JPMorgan initiated its coverage on the stock with an ‘Overweight’ rating and observed the company’s significant position in digital transformation in the construction sector.

Procore Technologies, Inc. (NYSE: PCOR) launched an IPO on May 19 and raised $634.5 million. The stock has gained 11.8% since its IPO. Like SentinelOne, Inc. (NYSE: S), Confluent, Inc. (NASDAQ: CFLT), Coupang, Inc. (NYSE: CPNG), Coinbase Global, Inc. (NASDAQ: COIN), UiPath Inc. (NYSE: PATH), Squarespace, Inc. (NYSE: SQSP), Airbnb, Inc. (NASDAQ: ABNB) and DoorDash, Inc. (NYSE: DASH), Procore Technologies, Inc. (NYSE: PCOR) is one of the best new tech stocks to buy now.

9. Olo Inc. (NYSE: OLO)

IPO Date: March 17, 2021 No. of Hedge Funds Having Stakes in the Company: N/A

Olo Inc. (NYSE: OLO) is a B2B SaaS company that specializes in cloud-based digital ordering and delivery programs for restaurants. Olo stands for online ordering. Over 400 multi-location restaurant companies use Olo Inc. (NYSE: OLO) to manage their digital channels.

In Q1 2021, Olo Inc. (NYSE: OLO) reported a net income of $6 million and an EPS of $0.03, beating the consensus by $0.02. The consolidated revenue presented a 125% year-over-year growth at $36.1 million. In the first quarter, Olo Inc. (NYSE: OLO) deployed some of the largest restaurant brands, including Bloomin’ Brands, Nando’s U.S., Culver’s, etc. In June, Truist raised its price target on Olo Inc. (NYSE: OLO) to $42, with a ‘Buy’ rating on the shares.

Olo Inc. (NYSE: OLO) made its debut on the New York Stock Exchange on March 17 and raised $450 million in its IPO. The stock has gained 9.38% since then. Like SentinelOne, Inc. (NYSE: S), Confluent, Inc. (NASDAQ: CFLT), Coupang, Inc. (NYSE: CPNG), Coinbase Global, Inc. (NASDAQ: COIN), UiPath Inc. (NYSE: PATH), Squarespace, Inc. (NYSE: SQSP), Airbnb, Inc. (NASDAQ: ABNB) and DoorDash, Inc. (NYSE: DASH), Olo Inc. (NYSE: OLO) is one of the best new tech stocks to buy now.

8. DigitalOcean Holdings, Inc. (NYSE: DOCN)

IPO Date: Marh 24, 2021 No. of Hedge Funds Having Stakes in the Company: 22

DigitalOcean Holdings, Inc. (NYSE: DOCN) is an American cloud computing company that provides an Infrastructure as a Service (IaaS) platform for software developers. These services help the developers to test, manage, and scale applications. DigitalOcean Holdings, Inc. (NYSE: DOCN) has more than 602,000 customers in over 185 countries.

In Q2 2021, DigitalOcean Holdings, Inc. (NYSE: DOCN) reported revenue of $103.8 million, presenting a 35% year-over-year growth. Annual Run-Rate Revenue, or ARR, also grew by 36% from the prior-year quarter at $426 million. For the third quarter, DigitalOcean Holdings, Inc. (NYSE: DOCN) expects revenue in the range of $106 million to $109 million. In August, JMP Securities raised its price target on DigitalOcean Holdings, Inc. (NYSE: DOCN) to $68, with an ‘Outperform’ rating on the shares. The firm appreciated the company’s strong earnings as a public company in the second quarter. Recently, Morgan Stanley also lifted its price target on the stock to $60.

DigitalOcean Holdings, Inc. (NYSE: DOCN) raised $775 million in its IPO on March 24 and the stock has gained 25.5% since then. Like SentinelOne, Inc. (NYSE: S), Confluent, Inc. (NASDAQ: CFLT), Coupang, Inc. (NYSE: CPNG), Coinbase Global, Inc. (NASDAQ: COIN), UiPath Inc. (NYSE: PATH), Squarespace, Inc. (NYSE: SQSP), Airbnb, Inc. (NASDAQ: ABNB) and DoorDash, Inc. (NYSE: DASH), DigitalOcean Holdings, Inc. (NYSE: DOCN) is one of the best new tech stocks to buy now.

7. Squarespace, Inc. (NYSE: SQSP)

IPO Date: May 19, 2021 No. of Hedge Funds Having Stakes in the Company: N/A

Squarespace, Inc. (NYSE: SQSP) is an American IT company that specializes in website building and hosting. The company is mainly known for providing a software platform that enables millions of businesses to build their brand online. Squarespace, Inc. (NYSE: SQSP) was founded in 2003 and is headquartered in New York City.

In Q1 2021, Squarespace, Inc. (NYSE: SQSP) reported revenue of $179.6 million, up 31.25% from the prior-year quarter. For the second quarter, the company expects revenue in the range of $186 million to $189 million. Guggenheim saw the company’s potential in its commerce segment and initiated its coverage on Squarespace, Inc. (NYSE: SQSP) with a ‘Buy’ and a $70 price target in July. Similarly, BofA also initiated its coverage on the stock with a ‘Buy’ rating.

Squarespace, Inc. (NYSE: SQSP) went public on May 19 via a direct listing and has gained 12.74% since then. Like SentinelOne, Inc. (NYSE: S), Confluent, Inc. (NASDAQ: CFLT), Coupang, Inc. (NYSE: CPNG), Coinbase Global, Inc. (NASDAQ: COIN), UiPath Inc. (NYSE: PATH), Airbnb, Inc. (NASDAQ: ABNB) and DoorDash, Inc. (NYSE: DASH), Squarespace, Inc. (NYSE: SQSP) is one of the best new tech stocks to buy now.

6. Sprinklr, Inc. (NYSE: CXM)

IPO Date: June 22, 2021 No. of Hedge Funds Having Stakes in the Company: N/A

Sprinklr, Inc. (NYSE: CXM) is an American software company that develops an SaaS customer experience management platform. The company has offices in 25 countries, with headquarters in New York City. It is best known for its social media management and advertising.

In FY21, Sprinklr, Inc. (NYSE: CXM) generated revenue of $387 million, up from $324 million in FY20, presenting a 22% year-over-year growth. In the fiscal first quarter of 2022, the company’s revenue stood at $111 million, with subscription revenue accounting for $97 million. In July, Morgan Stanley initiated its coverage on Sprinklr, Inc. (NYSE: CXM) with an ‘Equal Weight’ rating and a $22 price target. Analyst Tom Roderick at Stifel also appreciated the company’s unique platform for customer experience management and initiated its coverage with a ‘Buy’ rating and a $26 price target.

Sprinklr, Inc. (NYSE: CXM) raised $266 million in its IPO on June 22, and the stock has soared by 7.22% since then.

Like SentinelOne, Inc. (NYSE: S), Confluent, Inc. (NASDAQ: CFLT), Coupang, Inc. (NYSE: CPNG), Coinbase Global, Inc. (NASDAQ: COIN), UiPath Inc. (NYSE: PATH), Squarespace, Inc. (NYSE: SQSP), Airbnb, Inc. (NASDAQ: ABNB) and DoorDash, Inc. (NYSE: DASH), Sprinklr, Inc. (NYSE: CXM) is one of the best new tech stocks to buy now.

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Disclosure. None. 15 Best New Tech Stocks to Buy Now is originally published on Insider Monkey.