30 Stocks That Should Double in 3 Years

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13. Reddit Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 87

Reddit Inc. (NYSE:RDDT) operates a digital community that enables users to engage in conversations, explore passions, research new hobbies, exchange goods & services, create new communities & experiences, share laughs, and find belonging. It also organizes communities based on specific interests. On April 17, Truist Financial analyst Youssef Squali maintained a Buy rating on the stock.

In Q4 2024, Reddit’s advertising revenue increased by 60% year-over-year and reached $395 million. This advertising revenue drove total revenue to reach $1.3 billion for the full year 2024, which was up 62%. International advertising revenue also saw a 77% improvement attributed to the company’s ability to connect brands with engaged users.

The company is enhancing its advertising platform by integrating AI-powered tools, such as the AI Headline Generator and Memorable AI. This improves performance and attracts mid-market and SMB advertisers. Reddit Inc. (NYSE:RDDT) also focuses on brand safety and uses its unique community intelligence to develop advertising solutions like Reddit Pro Trends.

Munro Global Growth Small & Mid Cap Fund stated the following regarding Reddit, Inc. (NYSE:RDDT) in its Q4 2024 investor letter:

“Key contributors to performance over the quarter were Reddit and AppLovin (see stock story on page 5). Reddit, Inc. (NYSE:RDDT) delivered a strong set of results, demonstrating impressive revenue growth and expanding operating margins. As the world grapples with misinformation and AI-generated content, we continue to view Reddit’s position as a unique platform hosting the largest volume of human conversations globally becoming increasingly valuable.”

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