10 Best NASDAQ Penny Stocks To Invest In

3. Taboola.com Ltd. (NASDAQ:TBLA)

Share Price as of July 12: $3.25

Number of Hedge Fund Holders: 27

Taboola.com Ltd. (NASDAQ:TBLA) is a New York-based company that offers its signature platform, Taboola, to deliver personalized content and ad recommendations to users across the open web. Its platform is powered by deep learning and artificial intelligence and the company has a client network of 18,000 advertisers. The company’s discovery platform enables advertisers to promote their brands to target audiences. It is one of the best NASDAQ penny stocks to invest in.

Taboola (NASDAQ:TBLA) has set itself up for significant growth by teaming up with major players like Yahoo and Apple. These partnerships are important as they help the company diversify where its revenue streams and make its mark in the market. Taboola (NASDAQ:TBLA) has a long-term commercial agreement with Yahoo, spanning 30 years.

The company has been actively migrating Yahoo’s tier-one omnichannel advertisers to its platform and achieved a significant milestone by surpassing $100 million in revenue from Yahoo supply in Q1. The successful migration is proof of Taboola.com Ltd.’s (NASDAQ:TBLA) operational efficiency and its ability to capitalize on high-value partnerships to drive substantial revenue growth.

Additionally, Taboola.com Ltd. (NASDAQ:TBLA) has forged a partnership with Apple, initially as an authorized reseller for Apple News and Apple Stocks in Australia and Canada. The collaboration has since expanded to include the profitable U.S. and U.K. markets, which highlights Apple’s confidence in Taboola’s technology and platform capabilities. Management anticipates that Apple will emerge as an important partner.

These strategic alliances with Yahoo and Apple are key in diversifying the company’s revenue streams and easing investor concerns while also improving market positioning. With a market share of over 58%, Taboola (NASDAQ:TBLA) holds the most dominant share in the content discovery platforms category, according to 6sense. The company is well-positioned to attract a growing roster of prestigious global brands as it expands its partner network.

Finally, Taboola (NASDAQ:TBLA) is trading at 10.8x its 2024 estimated earnings, a 14.6% discount to its industry median of 12.64. The company has outperformed its EPS estimates for the last two years and is expected to grow by over 250% in 2024. The stock has a consensus Buy rating from 7 analysts and the average price target of $6.00 implies an upside of 85% from the current levels, as of July 12.

In the first quarter, 27 hedge funds had stakes in Taboola.com Ltd. (NASDAQ:TBLA), with total positions worth $59.73 million. As of Q1, G2 Investment Partners Management is the biggest shareholder in the company and has a position worth $10.55 million.