In this article, we will take a detailed look at the best growth stocks under $10 to buy right now.
Growth stocks refer to companies that grow their earnings and revenues at rates much above those of the broad market. The growth factor in investing has been widely recognized as a significant driver of stock price returns, especially in periods of low interest rates, low volatility, and a growing economy. For reference, growth stocks, as proxied by thematic ETFs, have consistently outperformed the broad US market during secular bull runs, such as the 2010-2021 and the 2023-2024 periods.
However, the growth factor has fallen out of favor during 2025 and slightly lags the broad market year-to-date. As already mentioned above, growth stocks thrive under conditions that aren’t apparently met at the moment. Interest rates are still high, and there’s a lot of uncertainty about whether the Fed will rush to cut them. Furthermore, the outlook on the US economy has been undermined by tumultuous change and actions from the new US administration. The good news is that growth stocks are currently trading at a discount vs. the beginning of the year, which represents a great opportunity for those willing to take a contrarian bet against the broad market. As we discuss below, some trustworthy signals suggest that growth stocks might become favored again and start outperforming the broad market.
READ ALSO: 11 Oversold Growth Stocks to Buy Now
Some indications emerged that point to the possibility that the “tariff detox” period is over and the Trump administration may be shifting to tax cuts and deregulation. Growth stocks love certainty on the economy and geopolitics, meaning that the end of the tariff dilemma is an extremely bullish signal. JP Morgan recently expressed their view on the evolution of US policy:
“On tariffs, the Administration is indicating progress on potential deals with Japan, Korea, and India, which could serve as templates for other trading partners. Of most importance is China, where the Administration has signaled some willingness to find a common ground and possibly get a deal done soon (the increasing risk of a small business default cycle kicking off is gaining attention).”
In addition, there’s plenty of negative official data coming every week, which is causing a lot of fear in the market. We firmly believe much of the negative data is transitory and could rebound at any moment, as soon as the US administration gives the right signal. For instance, container data from China recently showed a massive decline in shipments amid the tariff turmoil; many fear that consumer sales, transportation, and industrial activity will drastically slow down because of lower imports. Some early data from the Dallas and Philadelphia Fed have confirmed that manufacturing and general business activity are cooling, while the New Orders index has plummeted. Now, just think about it – shipments from China can instantly recover the moment that the Trump administration announces a trade deal with its main trade partners. Even if a deal with China directly won’t be reached quickly enough, there are endless possibilities to evade the 140% tariffs through third countries, similar to how European exports continued into Russia after the 2022 sanctions.
Another important indicator, which can be considered forward-looking, remained strong – US employers added 177,000 jobs in April and the unemployment rate was unchanged at 4.2 percent. We believe this represents a firm indication that CEOs are not rushing to downsize their business amid a likely transitory turmoil. Furthermore, we are encouraged to see high yield credit spreads back down from their peak levels two weeks ago – this is highly favorable for small-capitalization stocks, which are mostly in the growth category. This means that fixed-income investors are acknowledging that economic risk is subsiding.
To sum up, a smart way to make money in the stock market is to place contrarian bets when most of the market participants are in deep fear. As growth stocks are trading at a discount amid concerns of the economy slowing down, it is an opportunistic moment to invest in the best growth stocks that could become favored again as the current tariff challenges are navigated.
A businessman checking a graph, indicating the steady growth of his specialty finance company.
Our Methodology
To compile our list of the best growth stocks, we use a screener to identify companies with a share price below $10.00 with a revenue CAGR of at least 20% in the last 5 years. Then we compared the list with Insider Monkey’s proprietary database of hedge funds’ ownership and included in the article the top 14 stocks with the largest number of hedge funds that own the stock as of Q4 2024, ranked in ascending order.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
14. Teladoc Health, Inc. (NYSE:TDOC)
Stock price as of May 2nd: $7.06
Revenue CAGR last 5 years: 41.76%
Number of Hedge Fund Holders: 32
Teladoc Health, Inc. (NYSE:TDOC) is a telemedicine and virtual healthcare company that provides virtual care services, including primary care, mental health, chronic condition management, and expert medical opinions in more than 130 countries. TDOC’s business model consists of creating partnerships with employers, health plans, hospitals, and health systems, offering services through a combination of subscription fees and per-visit charges.
Teladoc Health, Inc. (NYSE:TDOC) reported Q1 2025 consolidated revenue of $629.4 million, down 3% YoY, with results at the high end of guidance ranges. The Integrated Care segment demonstrated solid performance with revenue of $389.5 million, up 3.3% over the prior year, driven by visit revenue, international growth, and the Catapult acquisition. The company achieved a significant milestone by surpassing 100 million US members, growing by 8.7 million members sequentially, while US virtual visit volumes increased by 7% and chronic care enrollment grew by 3% compared to the prior year. The strong growth momentum and a solid 41.76% revenue CAGR in the last 5 years solidified TDOC’s place on our list of the best growth stocks to buy right now.
A major strategic development for Teladoc Health, Inc. (NYSE:TDOC) was the acquisition of UpLift, a virtual mental health provider with arrangements covering over 100 million lives, which aligns with the company’s priority of advancing its position in virtual mental health. This acquisition is expected to enhance BetterHelp’s capabilities by enabling insurance benefits coverage alongside direct pay options, potentially addressing a key barrier to adoption, as out-of-pocket cost is frequently cited by potential users who don’t subscribe. The company continues to make progress on cost savings initiatives, running ahead of prior targets across technology and development, administrative costs, and stock-based compensation, while maintaining focus on strategic investments despite macroeconomic uncertainties.
13. Uranium Energy Corp. (NYSE:UEC)
Stock price as of May 2nd: $5.28
Revenue CAGR last 5 years: 101.98%
Number of Hedge Fund Holders: 34
Uranium Energy Corp. (NYSE:UEC) is a uranium mining and exploration company specializing in low-cost, environmentally friendly in-situ recovery (ISR) operations. The company operates two ISR hub-and-spoke production platforms in South Texas and Wyoming, anchored by fully operational central processing plants and supported by seven ISR uranium projects with all major permits in place. UEC also holds significant conventional uranium projects in Canada and Paraguay.
Uranium Energy Corp. (NYSE:UEC) is America’s largest and fastest-growing uranium company with over $1 billion in accretive acquisitions. The company possesses the largest licensed production capacity in the US at 12.1 million pounds of U3O8 per year. UEC maintains a strong balance sheet with over $350 million in cash and liquid assets, with no debt, and holds a significant physical uranium inventory of 1,256,000 pounds with an additional 700,000 pounds to be purchased through December 2025.
Uranium Energy Corp. (NYSE:UEC) successfully restarted production operations in Wyoming in August 2024 and is advancing development across its three hub-and-spoke production platforms. UEC’s growth is supported by strong market fundamentals, with global uranium demand significantly exceeding primary production, creating a structural supply deficit projected to continue and widen through 2040. The company’s position is further strengthened by unprecedented government policy support and increasing demand from big tech companies for nuclear power, along with a global pledge by more than 31 countries to triple nuclear energy capacity by 2050. Furthermore, UEC has strong support from hedge funds, with at least 34 of them owning the stock, which makes it one of the best growth stocks under $10 to consider in 2025.
12. New Fortress Energy Inc. (NASDAQ:NFE)
Stock price as of May 2nd: $6.08
Revenue CAGR last 5 years: 82.12%
Number of Hedge Fund Holders: 34
New Fortress Energy Inc. (NASDAQ:NFE) designs, finances, and operates LNG terminals, power plants, and logistics assets, providing turnkey energy solutions to customers worldwide. Its operations span the United States, Latin America, the Caribbean, and Europe, with notable projects including the Fast LNG facilities in Mexico and Louisiana.
New Fortress Energy Inc. (NASDAQ:NFE) reported strong financial performance with Q4 EBITDA of $313 million, approximately 50% above previous guidance, and full-year 2024 EBITDA of $950 million. The company has confirmed guidance of $1 billion EBITDA for 2025, driven by significant growth opportunities in its core markets. The company’s Fast LNG asset has been a major contributor, performing above nameplate capacity and demonstrating exceptional operational efficiency since achieving first gas in late July.
New Fortress Energy Inc. (NASDAQ:NFE) has strengthened its balance sheet through multiple capital market activities totaling $4.775 billion in corporate transactions. Strategic growth opportunities exist particularly in Puerto Rico and Brazil, with Puerto Rico representing potentially the biggest gas-to-power market opportunity globally. In Brazil, the company has secured over 2.2 gigawatts with long-term power purchase agreements contracted for more than 15 years with inflation-adjusted PPAs, while also positioning itself for significant growth through the upcoming 2025 capacity auction. The attractive growth opportunities that NFE faces persuaded us to include it on our list of the best growth stocks under $10.
11. Flywire Corporation (NASDAQ:FLYW)
Stock price as of May 2nd: $9.57
Revenue CAGR last 5 years: 39.35%
Number of Hedge Fund Holders: 34
Flywire Corporation (NASDAQ:FLYW) is a global payments enablement and software company. It offers a proprietary payments platform and a global payment network, facilitating cross-border transactions in over 140 currencies across more than 240 countries. FLYW’s core clients are in sectors such as education, healthcare, travel, and B2B.
Flywire Corporation (NASDAQ:FLYW) achieved 24% revenue growth, with fewer ancillary services in 2024 and improved adjusted EBITDA margins by 540 basis points, despite significant macro headwinds from student visa policy changes. The company added over 800 new clients in 2024, surpassing 2023 additions, and now serves approximately 4,500 clients globally. The travel vertical emerged as FLYW’s second-largest revenue segment, showing particularly strong growth in EMEA and APAC regions. The company also announced the acquisition of Sertifi, which provides access to over 20,000 hotel locations globally and presents opportunities to monetize several billion dollars in payment volume.
Looking ahead, Flywire Corporation (NASDAQ:FLYW) faces significant challenges in its education business, with double-digit declines in student visa issuance across its big 4 geographic markets. In response, the company is undertaking a comprehensive business portfolio review focusing on core strengths and implementing a restructuring, affecting approximately 10% of its workforce. For 2025, the company is guiding to 10% to 14% FX-neutral growth excluding Sertifi, with approximately 3 points of headwind from FX throughout the year. Management expects Canada and Australia education markets to be down over 30% YoY, while maintaining strong growth expectations in EMEA education, travel, and B2B segments. We believe the strong guidance ahead and the strategic initiatives to mitigate recent challenges make FLYW one of the best growth stocks under $10 to buy right now.
10. Payoneer Global Inc. (NASDAQ:PAYO)
Stock price as of May 2nd: $7.21
Revenue CAGR last 5 years: 25.68%
Number of Hedge Fund Holders: 35
Payoneer Global Inc. (NASDAQ:PAYO) is a financial technology company that provides payment solutions for freelancers, online sellers, and small businesses specializing in e-commerce. The company’s competitive advantage is establishing a strong presence at lower volume brackets (the typical freelancer receiving his pay online), which may have difficulties with cross-border payments. PAYO’s platform supports transactions in more than 200 countries and also offers solutions for working capital management to help businesses grow. The US-based company was also mentioned on our recent list of 10 Best Low Priced Growth Stocks To Invest In.
Payoneer Global Inc. (NASDAQ:PAYO) delivered a record-breaking 2024 with volume growth of 21%, revenue growth excluding interest income of 20%, and generated $271 million of adjusted EBITDA, representing a 28% adjusted EBITDA margin for the year. The company demonstrated strong execution across multiple fronts, with B2B volume growing 42% YoY, significantly outpacing their initial target of 25%, while average revenue per user, excluding interest income, grew 21% YoY, marking 6 consecutive quarters of acceleration. Customer adoption of 3 or more products reached 53% of total usage in Q4 2024, representing a 30% increase over Q1 2022.
Looking ahead to 2025, Payoneer Global Inc. (NASDAQ:PAYO) expects revenues between $1,040 million and $1,050 million, implying 7% growth YoY. The company’s strategy to build a global financial stack for enterprises is working, with a focus on connecting underserved businesses to the global economy while delivering sustainable, profitable growth. The company has demonstrated improving profitability, projecting adjusted EBITDA between $255 million and $265 million for 2025, representing an adjusted EBITDA margin of approximately 25%, while core business profitability is expected to increase to between $40 million and $50 million, over 3x higher than in 2024. With a stock price of only $7.21 and a 25.68% 5-year revenue CAGR, PAYO is one of the best growth stocks on our list.
9. Marqeta, Inc. (NASDAQ:MQ)
Stock price as of May 2nd: $3.85
Revenue CAGR last 5 years: 38.16%
Number of Hedge Fund Holders: 37
As a financial technology company, Marqeta, Inc. (NASDAQ:MQ) specializes in modern card issuing and payment processing solutions. Its open cloud-native platform enables businesses to create customized debit, credit, and prepaid card programs with features like Just-in-Time funding, dynamic spend controls, and tokenization for digital wallets. MQ operates globally and serves a diverse clientele across industries such as digital banking, on-demand services, expense management, and “Buy Now, Pay Later” providers.
Marqeta, Inc. (NASDAQ:MQ) delivered strong Q4 2024 results with total payment volume (TPV) growing 29% YoY to $80 billion, net revenue increasing 14% to $136 million, and gross profit rising 18% to $98 million. The company achieved a significant milestone with adjusted EBITDA of $13 million, representing a 9% margin and marking new all-time highs as it continues on its path to profitability. MQ expects to exit 2026 with GAAP profitability, driven by gross profit growth outpacing expense growth.
Strategic achievements include securing new partnerships, with notable wins including a consumer co-brand credit partnership with an international airline and significant momentum in European operations, where TPV growth exceeded 100%. Marqeta, Inc. (NASDAQ:MQ) is enhancing its platform capabilities through the planned acquisition of TransactPay to strengthen its European program management services, and the addition of American Express to its network options later this year. For 2025, MQ projects net revenue growth between 16% and 18%, making it one of the best growth stocks under $10 on our list. At the same time, management expects TPV growth in the mid to high 20s, while maintaining focus on operational efficiency with adjusted EBITDA margin targeted at 9% to 10% (vs. 9% last year).
8. Riot Platforms, Inc. (NASDAQ:RIOT)
Stock price as of May 2nd: $8.39
Revenue CAGR last 5 years: 361.17%
Number of Hedge Fund Holders: 38
Riot Platforms, Inc. (NASDAQ:RIOT) is one of the best growth stocks on our list, specializing in Bitcoin mining and digital infrastructure. RIOT operates large-scale mining facilities in central Texas and Kentucky and maintains electrical switchgear engineering and fabrication operations in Colorado. The company has a vertically integrated strategy, encompassing mining operations and the development of electrical products.
Riot Platforms, Inc. (NASDAQ:RIOT) reported total revenue of $161.4 million in Q1 2025, representing a 13% increase from the previous quarter, primarily driven by increased uptime and improved operating efficiency in Bitcoin Mining operations. The company achieved an average uptime of nearly 90% in Bitcoin Mining operations and increased its self-mining hash rate from 31.5 exahash to 33.7 exahash during the quarter. Despite reporting a net loss of $296.4 million primarily due to mark-to-market adjustments from Bitcoin price decline, the company maintained strong operational metrics with a gross margin of 46% and Bitcoin Mining gross margin of 48%.
A significant strategic move for Riot Platforms, Inc. (NASDAQ:RIOT) was the acquisition of Rhodium’s assets, including mining operations and access to 125 megawatts of contracted power at the Rockdale Facility, which will help reduce operating losses and litigation costs associated with legacy contracts. The company is making substantial progress in developing its AI/HPC data center business, with completed feasibility studies, expanded site footprint through additional land acquisitions, and enhanced internal expertise. RIOT has secured necessary easements for municipal water at Corsicana while also acquiring additional land parcels for data center development, demonstrating aggressive pursuit of value-maximizing outcomes for its data center business.
7. Applied Digital Corporation (NASDAQ:APLD)
Stock price as of May 2nd: $5.30
Revenue CAGR last 5 years: 186.71%
Number of Hedge Fund Holders: 42
Applied Digital Corporation (NASDAQ:APLD) develops and operates next-generation digital infrastructure across North America. The company offers infrastructure services to crypto mining customers and GPU computing solutions for critical workloads related to AI, machine learning, and other high-performance computing tasks.
Applied Digital Corporation (NASDAQ:APLD) currently operates 286 megawatts of fully contracted data center hosting capacity for cryptocurrency clients across 2 locations in North Dakota, running at full capacity. The company has secured significant financial partnerships, including a potential $5 billion investment from Macquarie Asset Management for next-generation data center development and a $375 million financing arrangement with Sumitomo Mitsui Bank Corporation. Construction of the Ellendale campus remains on schedule, with the first 100-megawatt building expected to generate revenue in calendar Q4 2025, followed by a 150-megawatt second building in Q2 2026, and a third 150-megawatt building planned for Q1 2027.
Applied Digital Corporation (NASDAQ:APLD) has announced plans to review strategic options for its Cloud Services Business, which provides high-performance computing power for AI applications. This decision is driven by potential customer concerns about competition and the possibility of transitioning to a data center REIT structure in the future. Financially, the company reported Q3 2025 revenues of $52.9 million, up 22% over the prior comparable period, with the Data Center Hosting segment generating $35.2 million and Cloud Services contributing $17.8 million. The increased attention and investments from hedge funds and leading financial institutions reinforce our conviction that APLD is one of the best growth stocks to consider under $10.
6. Snap Inc. (NYSE:SNAP)
Stock price as of May 2nd: $8.45
Revenue CAGR last 5 years: 27.73%
Number of Hedge Fund Holders: 44
Snap Inc. (NYSE:SNAP) is a technology company that runs the famous Snapchat platform, which represents a visual messaging application that competes with Instagram and TikTok. Beyond Snapchat, the company also offers products like Spectacles (smart glasses that capture video content) and Bitmoji (personalized avatars used on digital platforms). Like other media companies, SNAP generates its revenue primarily through advertising services, but also has the potential to monetize AR and AI capabilities across its platform. The US-based company ranked eighth on our recent list of 10 Best Low Priced Growth Stocks To Invest In.
Snap Inc. (NYSE:SNAP) delivered a strong Q1 2025 performance with revenue increasing 14% YoY to $1.36 billion, driven by progress in direct response advertising solutions, momentum in small and medium-sized businesses, and growth of the Snapchat+ subscription business. The company demonstrated improved profitability with $108 million in adjusted EBITDA and $114 million in free cash flow. The company reached a significant milestone with more than 900 million monthly active users and grew to 460 million daily active users, representing an increase of 38 million YoY.
Snap Inc. (NYSE:SNAP) is focusing on three key areas for growth: enhancing core visual communication products, investing in AI and ML models for better content ranking and personalization, and strengthening the creator ecosystem. Direct response advertising revenue reached 75% of total advertising revenue for the first time in Q1, while active advertisers grew by 60% YoY. Given the progress in advertising platform and execution against strategic priorities, the company believes it is well-positioned to deliver improved business performance and meaningful positive free cash flow. As SNAP makes further progress towards GAAP profitability, it is one of the best growth stocks to buy under $10.
5. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)
Stock price as of May 2nd: $6.03
Revenue CAGR last 5 years: 29.52%
Number of Hedge Fund Holders: 47
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a provider of drilling and completion services for oil & gas exploration and production in the US and some international markets. PTEN offers several core services, such as contract drilling, integrated well completion, and directional drilling, which are crucial for the exploration process. Additionally, the company provides specialized drill bit solutions that help with exploration in difficult areas, within the US, the Middle East, and other regions. The Houston-based company ranked eighth on our recent list of 12 Best Oil and Gas Dividend Stocks According to Billionaires.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) delivered strong first quarter results with steady drilling activity across US shale and a robust recovery in completions activity following fourth quarter slowdowns. The company’s integrated service offering provides a unique competitive advantage that is difficult to replicate in US shale. The company maintains strong relationships with the industry’s largest operators, with approximately 60% of revenue coming from the 15 most active E&Ps in the US. The strong competitive position is the primary factor that persuaded us to include PTEN on our list of the best growth stocks to buy.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) closed Q1 with $225 million in cash and an undrawn $500 million revolver, demonstrating a strong liquidity position. While recent oil price volatility has created some uncertainty, natural gas markets are showing constructive signs with increased activity in gas-focused basins. The company maintains flexibility in its capital allocation, with a commitment to return at least 50% of adjusted free cash flow to shareholders through dividends and share repurchases, while maintaining a strong balance sheet with net debt at just 1x trailing 12 months adjusted EBITDA.
4. Peloton Interactive, Inc. (NASDAQ:PTON)
Stock price as of May 2nd: $6.82
Revenue CAGR last 5 years: 36.70%
Number of Hedge Fund Holders: 49
Peloton Interactive, Inc. (NASDAQ:PTON) is a global fitness technology company offering internet-connected exercise equipment such as bikes, treadmills, rowers, and other equipment, which stream live and on-demand fitness classes through a subscription service. The company’s competitive advantage is based on serving a subcategory of sports lovers who are tech-savvy and prefer smart workouts at home. PTON also provides a digital app that offers paid access to various workout classes, which makes it easier to train at home without fitness coaches.
Peloton Interactive, Inc. (NASDAQ:PTON) demonstrated strong financial improvements in Q2 2025, with Connected Fitness Products’ gross margin reaching 12.9%, marking the first double-digit margin in over three years. The company achieved meaningful profitability improvements with both adjusted EBITDA and free cash flow increasing by approximately $140 million YoY. Net debt decreased by over $280 million or 30% YoY, showing significant progress in deleveraging the balance sheet.
Peloton Interactive, Inc. (NASDAQ:PTON) demonstrated strong member engagement with over 2 million unique members completing Strength training, bootcamp, Pilates, or yoga workouts in Q2. Member satisfaction improved significantly with Net Promoter Scores exceeding 70 across all Bike and Tread products. The company maintained exceptionally low churn rates with an average net monthly Paid Connected Fitness Subscription churn of 1.4% in Q2, while subscription retention showed particular strength among members engaging in multiple disciplines, with 60% lower churn for those using two or more disciplines per month. PTON has significantly outperformed the broad market in the last 12 months, which, coupled with a strong double-digit revenue growth momentum, makes it one of the best growth stocks under $10 to buy right now.
3. Cleveland-Cliffs Inc. (NYSE:CLF)
Stock price as of May 2nd: $8.88
Revenue CAGR last 5 years: 90.00%
Number of Hedge Fund Holders: 49
Cleveland-Cliffs Inc. (NYSE:CLF) is a vertically integrated steel manufacturer and iron ore producer, primarily serving the North American metals market. The company operates across the entire steel production value chain, from mining iron ore and producing iron ore pellets to manufacturing flat-rolled steel, including hot-rolled, cold-rolled, coated, stainless, electrical, and specialty steel products. Its products are predominantly used by automotive manufacturers, construction firms, appliance makers, and other industrial sectors that rely on metals sourcing for their operations. CLF ranked first on our recent list of 12 Stocks That Are About to Explode.
Cleveland-Cliffs Inc. (NYSE:CLF) faced challenging market conditions in 2024, with steel demand at its weakest level since 2010 outside of the COVID-19 period. The company experienced particularly weak demand from the automotive, construction, and industrial sectors in the second half of 2024, leading to the idling of the C6 blast furnace at Cleveland Works. However, entering 2025, the company’s order book has strengthened substantially, with hot-rolled steel lead times extending from 3 weeks to 7 weeks, indicating improved market conditions.
The acquisition of Stelco has strengthened Cleveland-Cliffs Inc. (NYSE:CLF)’s position, with the company expecting to achieve $120 million in synergies by the end of 2025. The company’s cost structure is expected to improve, with average costs projected to decline by $40 per net ton in 2025. The implementation of new 25% tariffs on steel imports from all countries is expected to benefit the company by addressing unfair competition and strengthening domestic producers. With improved automotive demand, better pricing environment, and the integration of Stelco’s primarily non-automotive business, CLF is one of the best growth stocks to consider in 2025, as it is well-positioned for a significantly improved performance later in the year.
2. ZoomInfo Technologies Inc. (NASDAQ:ZI)
Stock price as of May 2nd: $9.00
Revenue CAGR last 5 years: 35.41%
Number of Hedge Fund Holders: 51
ZoomInfo Technologies Inc. (NASDAQ:ZI) is the second-best growth stock under $10 on our list, which developed a cloud-based intelligence platform designed for sales, marketing, operations, and recruiting professionals. Its platform delivers comprehensive business data and analytics, enabling users to engage with customers and other stakeholders effectively across a diverse range of industries, including software, business services, manufacturing, financial services, and others. The company’s main product is a search engine for contact and business information, which allows users to connect with potential clients, suppliers, and partners.
ZoomInfo Technologies Inc. (NASDAQ:ZI) delivered better-than-expected Q4 2024 results with revenue of $309 million and adjusted operating income of $116 million, representing a 37% margin. The company achieved its first sequential improvement in net revenue retention since Q1 2022, increasing to 87% in Q4. Notably, the operations business grew 27% YoY, while Copilot exceeded expectations with over $150 million in annual contract value.
Notably, the operations business grew 27% YoY, while Copilot exceeded expectations with over $150 million in ACV, is strategically focusing on the upmarket segment, which comprises more than two-thirds of the business, and is on a path to mid-single-digit growth with higher margins than the downmarket segment. The downmarket segment, representing less than one-third of the business, declined 9% in 2024 but shows signs of stabilizing to a smaller and healthier portion. ZoomInfo Technologies Inc. (NASDAQ:ZI) is positioning itself as the de facto provider of data and AI in the enterprise, with continued success in data and operations solutions. The company’s execution has caught up with innovation, leading to improved customer engagement and satisfaction, with 99% of surveyed marketing and sales leaders reporting their perception of ZI has improved or remained stable in the last 6 months.
1. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Stock price as of May 2nd: $8.54
Revenue CAGR last 5 years: 40.98%
Number of Hedge Fund Holders: 64
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment conglomerate formed through the merger of WarnerMedia and Discovery in 2022. The company operates film and television production under brands like Warner Bros Pictures, New Line Cinema, and Warner Bros Television Group. The company also owns a diverse portfolio of television channels (Discovery Channel, Cartoon Network, and Animal Planet, among others) and focuses on streaming services through Max and Discovery+ platforms.
Warner Bros. Discovery, Inc. (NASDAQ:WBD) ended 2024 with approximately 117 million subscribers across more than 70 countries, adding 6.5 million subscribers in Q4 and nearly 20 million subscribers in less than a year. The company’s direct-to-consumer business demonstrated significant improvement, contributing almost $700 million in EBITDA, representing a $3 billion improvement in just 2 years, with expectations to nearly double in 2025. The company successfully secured multi-year renewal agreements with five of the six largest pay-TV providers in America, commanding overall rate increases and providing stability to their linear business.
Looking ahead, Warner Bros. Discovery, Inc. (NASDAQ:WBD) has a clear path to reach at least 150 million subscribers by the end of 2026, supporting further revenue and EBITDA growth. The company implemented a new organizational structure that aims to provide better visibility to its streaming and Studios business while creating strategic value and optionality for the future. The Studios business is showing positive momentum, particularly with upcoming releases like Superman in July, while the company maintains its focus on achieving $3 billion or more in EBITDA from the Studios segment.
Overall, WBD ranks first on our list of the best growth stocks under $10 to buy right now. While we acknowledge the potential of WBD to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WBD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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