5 Best Artificial Intelligence Stocks Under $20 According To Hedge Funds

3. Nerdy, Inc. (NYSE:NRDY)

Share Price as of March 6: $2.96

Number of Hedge Fund Holders: 21

Ranked 3rd on our list of the best AI stocks under $20, Nerdy, Inc. (NYSE:NRDY) runs a platform for live online learning. Their platform uses technology, including artificial intelligence, to connect students, parents, and users of all ages with tutors, instructors, and experts. This setup benefits both learners and educators. Established in 2007, Nerdy, Inc. (NYSE:NRDY) is based in Saint Louis, Missouri.

On February 27, Nerdy, Inc. (NYSE:NRDY)’s Q4 non-GAAP adjusted net earnings were $2.2 million. The company’s revenue came in at $55.1 million, beating Wall Street estimates by $0.33 million.

According to Insider Monkeys’ fourth quarter database, 21 hedge funds were bullish on Nerdy, Inc. (NYSE:NRDY), down from 22 funds in the previous quarter. 

Here is what Baron Opportunity Fund has to say about Nerdy, Inc. (NYSE:NRDY) in its Q4 2021 investor letter:

“Nerdy Inc. operates a digital learning platform in the U.S. that provides live online tutoring in multiple formats, including one-on-one and small-to-large groups. The offering includes K-12 courses, college, professional, GMAT, SAT, and other prep. Though bookings for future classes remained healthy, many sessions were delayed from the fourth quarter as families opted to take longer holiday trips and kids resumed after school activities, making it more difficult to schedule tutoring, resulting in weaker-than-projected recognized revenues. Given near-term uncertainty, a short-term tax loss, and other investment opportunities, we chose to exit the position.”