5 Cheap Social Media Stocks to Buy According to Hedge Funds

3. PubMatic, Inc. (NASDAQ:PUBM)

Number of Hedge Fund Holders: 12

P/E Ratio as of April 4: 27.45

PubMatic, Inc. (NASDAQ:PUBM) provides a cloud infrastructure platform that allows real-time programmatic advertising transactions for Internet content creators and advertisers worldwide. The company’s platform supports a range of ad formats and digital device types, including mobile app, mobile web, desktop, display, video, over-the-top, connected television, and media. It is one of the best cheap social media stocks to monitor. On February 28, PubMatic, Inc. (NASDAQ:PUBM) announced that its board of directors authorized a share repurchase program. Through the program, the company may repurchase up to $75 million of Class A common stock through the end of 2024.

Matthew Swanson, an analyst at RBC Capital, maintained an Outperform rating on PubMatic, Inc. (NASDAQ:PUBM) but reduced the price target on the shares from $24 to $20 on March 1. Swanson noted that the company’s Q4 performance was affected by macro factors more than expected. Although demand has since improved, the management is still wary of the future due to a slower macro recovery compared to its peers. PubMatic, Inc. (NASDAQ:PUBM) did not provide revenue guidance for the year, but they are taking measures to ensure profitability. 

According to Insider Monkey’s fourth quarter database, 12 hedge funds were long PubMatic, Inc. (NASDAQ:PUBM), and Cliff Asness’ AQR Capital Management is a significant stakeholder of the company, with 33,812 shares worth $433,132.