Among excess tech stocks to buy according to hedge funds
Recently I published a list 11 sales office stocks to buy according to hedge funds. In this article, we will look at where Flywire Corporation (NASDAQ: FLYW) will compete against other sold tech stocks, according to hedge funds.
Technology stock is one of the best performances of the past 15 years. The technology sector has consistently outperformed the wide range of US markets since the aftermath of the 2008 financial crisis, with particularly strong periods of 2014-2021 and 2023-2024. Technology stocks tend to perform well during periods of economic expansion and low interest rates, stimulating the widespread adoption of technological advances. During such periods, tech companies tend to trade at expensive valuations, reflecting strong growth opportunities in the future. Therefore, many investors believe they are overvalued, and they are trying not to be exposed to them, and as a result, they are missing out on returns. The key point about technology stocks is that the valuation will immediately plummet due to slight macroeconomic uncertainty and confusion. So the best moment to win tech stocks is when they’re oversold, and when fear controls the market.
We believe we are at the right time to increase our exposure to technology. The Yardeni chart shows that S&P Information Technology is currently trading at P/E around 24.4, well below the peak in late 2024, showing a nearly 20% decline in valuations (for comparison, the broad market valuation is only 10%). Technology inventory hasn’t been that cheap since 2023, when the artificial intelligence megatrends were simply growing. Furthermore, the same sources showed that the sector has experienced two consecutive negative revisions to revenue expectations. That means Wall Street analysts have already set prices with short-term headwinds, reducing the likelihood of further negative surprises in the near future. In other words, the best scenario for purchasing is when both Wall Street and the market are pessimistic, leading to weak expectations and cheap valuations.
In summary, we concluded that the prices of technology stocks are currently low. The only question that needs to be answered is whether the macroeconomic background is preferred enough to promote new bull runs in the tech sector. First, as we have already mentioned above, technology inventory thrives under a low interest rate environment. Recent Comments Comments by Federal Reserve officials are hints at the higher odds of faster rate cuts in June. As a result, US government bonds fell sharply last week, in anticipation of low prices. This increases the likelihood that technical tailwinds will not be muted, and companies spend more on AI, cloud computing, cybersecurity, and other high-tech projects that require large cash outlays and are sensitive to funding costs. I’m also happy to find confirmation of hypotheses from major consultants such as Deloitte. This is an excerpt from the recent 2025 Technology Industry Outlook Report.
“Despite recent uncertainty and economic disruption, the technology industry appears poised for growth in 2025, thanks to the support of an increase in IT spending, AI investment and a new focus on innovation. Some analysts will see an increase of 9.3% in 2025. 2028. The trend in technology layoffs persisted in 2024, but the decline appeared to be slower than in 2023.”
That being said, the current market setup seems highly favorable for investing in sales tech stocks that could restore some or all of the value lost during the recent Trump tariff turmoil. With the exception of tariffs given on electronic products, President Trump suggests that China’s tariffs could fall from the current unsustainable 145%.
FlyWire Corporation (FlyW): Among the sold-out high-tech stocks, according to hedge funds
A digital tablet that presents a variety of payment options along with educational lectures on the benefits of various features.
To compile a list of tech inventory sold, we used a screener to identify technology sector stocks with a relative strength index (RSI) below 40. The list is then compared with the ownership database of the hedge fund ownership and is included in the article.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (For more information, please see here).
RSI: 39.36
Number of hedge fund holders: 34
FlyWire Corporation (NASDAQ: FLYW) is a global payment activation and software company. It offers its own payment platform and global payment network, encouraging cross-border transactions in over 140 currencies in over 240 countries. Flyw’s core clients are in sectors such as education, healthcare, travel, and B2B.
Flywire Corporation (NASDAQ: FLYW) achieved a revenue growth rate of 24% in 2024 and improved its EBITDA margin adjusted to 540 basis points despite facing major headwinds from student visa policy changes. The company added over 800 new clients in 2024, surpassing the 2023 addition, bringing its total customer base to around 4,500 worldwide. Travel Vertical emerged as the second largest revenue segment and showed particularly strong growth in the EMEA and APAC regions. However, the company faces major challenges in its education business, with double-digit declines in student visa issuance in the Big 4 geographical market, particularly in Canada and Australia, with the hopes of a 2025 revenue fall of around 30%.
In response to these challenges, Flywire Corporation (NASDAQ: FLYW) has announced several strategic initiatives, including the acquisition of Sertifi, to enhance travel verticals. The company also conducts a comprehensive business portfolio review focusing on core strengths such as complex, large value payment processing, global payment networks, and verticalization software. Additionally, as part of the operational efficiency initiative, it announced a restructuring that will affect approximately 10% of the workforce. Despite these challenges, management is confident in their adaptability and projecting FX neutral growth of 10% to 14% for the full year of 2025, making Flyw one of the best sales inventory on the list.
Overall, Flyw 8th place It is listed on the list of tech stocks sold to buy according to hedge funds. While we acknowledge the potential of FlyW as an investment, our belief lies in the belief that AI stocks offer higher returns and hold a greater promise to do so within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for AI stocks that are more promising than FlyW but are trading under 5x revenue, check out our report on this Cheapest AI stocks.
