10 Best New Stocks to Buy According to Billionaires

2. Reddit, Inc. (NYSE:RDDT)

Market Capitalization: $20.306 billion

Number of Hedge Fund Holders: 87

Number of Billionaires: 15

Total Value of Billionaire Holdings: $2,946,216,230

Reddit, Inc. (NYSE:RDDT) is an international social platform that operates on user-driven communities. The platform allows users to join and create communities of their interest and interact with like-minded people. There are more than 100,000 active communities that attract more than 100 million daily active users.

During the fiscal fourth quarter of 2024, Reddit, Inc. (NYSE:RDDT) delivered a robust performance characterized by revenue and user growth. The revenue of the company grew 71% year-over-year to reach $427.7 million. The revenue growth was aided by the advertisement revenue which also grew 60% to reach $394.5 million. The company has been trying to make the platform more accessible internationally, to do this it launched a machine translation feature that can translate content in 8 languages. In addition, Reddit, Inc. (NYSE:RDDT) is also leveraging AI to enhance customer experience, during the quarter, the company launched a beta version of Reddit Answers which allows users to summarize the discussions using AI. On April 17, Truist Financial analyst Youssef Squali maintained a Buy rating on the stock. It is one of the best new stocks to buy according to billionaires.

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.”