11 Best Young Stocks to Buy According to Hedge Funds

2. Reddit Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 87

Reddit Inc. (NYSE:RDDT) enables users to engage in conversations, explore passions, research new hobbies, and exchange goods and services. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another.

Reddit’s advertising business reached $359 million in Q1 2025, which was up 61% year-over-year and was driven by broad-based strength across objectives, channels, verticals, and geographies. About 40% of this ad revenue came from advertisers focused on building brand awareness rather than direct sales. Notably, active advertisers at Reddit Inc. (NYSE:RDDT) increased by more than 50%.

On May 5, Baird analyst Colin Sebastian raised the price target on the stock to $140 from $125 and maintained a Neutral rating on the shares. Reddit now projects total revenue between $410 million and $430 million for Q2. The company is enhancing its advertising platform to drive further growth. This includes investment in ML and ad formats to improve performance for advertisers and simplify the usability for both advertisers and sales teams through new tools and AI-driven insights.

Reddit Inc.’s (NYSE:RDDT) strong quarterly earnings, user growth, and AI partnership news drove a stock surge, which made it a top performer for the Columbia Threadneedle Global Technology Growth Strategy. The fund stated the following in its Q4 2024 investor letter:

“Reddit, Inc. (NYSE:RDDT) was the single best-performing stock for the fund, as the stock surged during the quarter, with significant outperformance following its stellar quarterly earnings release. The capital-light social news aggregation platform — and the ninth most-visited website in the world — reported quarterly revenue, user growth and profit margins that came in considerably higher than even the most bullish of estimates, and the company also provided forward-looking guidance that came in well ahead of expectations on most metrics. After earlier announcing a data licensing partnership with AI pioneer OpenAI, investors ‘up-voted’ the evolving AI narrative for Reddit after gaining a better understanding of its unique and hard-to-replicate trove of content generated by its growing and increasingly global user base.”