10 Most Promising Penny Stocks According to Hedge Funds

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

Share Price as of October 11: $3.29

Number of Hedge Fund Holders: 32

Taboola.com Ltd. (NASDAQ:TBLA) operates a platform that uses AI to deliver native advertising. This means that it creates ads that seamlessly blend with the content users are already reading on publisher websites. It connects advertisers with a massive audience of over 600 million daily active users, helping them reach potential customers and achieve marketing goals at scale.

Its strategic partnerships, including a 30-year deal with Yahoo reaching 900 million users and expansion into premium platforms, significantly expand its reach and strengthen its market position. These partnerships unlock a potential $1 billion in annual revenue and attract high-value advertisers seeking premium audiences. In July, it went into an exclusive agreement with Apple to integrate native advertising in Apple News and Stocks apps further solidifying its position.

Its revenue grew by 28.96% in the second quarter of 2024, making $428.16 million. Initiatives to attract Tier 1 brands and agencies showed strong growth year-over-year and accounted for 25% of revenue. Demand out of China has more than doubled versus the prior year. Maximize Conversions, the company’s first AI-powered bidding technology, continues to make significant strides, with adoption now approaching 70% of the revenue, up ~10 points sequentially, with an increase of over 100% in the number of advertiser campaigns using this technology.

The company stands out in digital advertising with its AI-powered approach. Taboola.com Ltd.’s (NASDAQ:TBLA) focus on delivering value to advertisers, coupled with its innovative product offerings and expanding reach, makes it a compelling investment opportunity.