12 Best New Stocks to Buy According to Hedge Funds

2) Reddit, Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 52

Reddit, Inc. (NYSE:RDDT), which went public on March 21, 2024, operates a website that organizes digital communities.

Industry experts are quite optimistic about Reddit, Inc. (NYSE:RDDT)’s monetization strategies. Despite being in the early stages, these efforts demonstrate strong room for Average Revenue Per User (ARPU) gains and sustained revenue growth. The introduction of new ad products like Search, Video, and Dynamic Product Ads continues to attract higher advertiser interest. These innovations should fuel incremental ad spend and improve overall monetization.

Reddit, Inc. (NYSE:RDDT)’s focus on developing advanced advertising tools, such as Reddit Pro and shopping features, should attract a broader range of advertisers. These tools are expected to increase the platform’s competitiveness in the digital advertising market. As and when these new ad products mature and gain traction, they might fuel substantial improvements in advertising ARPU and overall revenue.

Another promising development in Reddit, Inc. (NYSE:RDDT)’s monetization strategy is its data licensing business. It has secured deals with major tech firms such as Google and OpenAI, using its vast archive of contextual content for AI training purposes. Experts believe that Reddit, Inc. (NYSE:RDDT)’s vast repository of user-generated content and discussions should be valuable for training large language models and AI systems.