Billionaire Michael Platt’s 10 Stock Picks with Huge Upside Potential

7. Reddit, Inc. (NYSE:RDDT)

BlueCrest Capital Management’s Q4 Stake: $4.9 million

Upside Potential as of April 29: 29.77%

Number of Hedge Fund Holders: 87

Reddit Inc. (NYSE:RDDT) runs a digital community where users may join and establish communities of their choice, as well as engage with others who share similar interests. There are over 100,000 active communities on the platform, with more than 100 million daily active users.

Reddit, Inc. (NYSE:RDDT) is also leveraging AI to enhance its services and make content more accessible to its users. The company recently introduced a beta version of Reddit Answers, an AI-powered search engine that provides edited summaries of community topics. However, this is still in its early stages.

Reddit, Inc. (NYSE:RDDT) reported solid performance in the fiscal fourth quarter of 2024, with increased revenue and user base. The company’s revenue surged 71% year-over-year, reaching $427.7 million. The revenue gain was boosted by advertisement revenue, which shot up by 60% to $394.5 million.

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.”