12 Best Technology Penny Stocks To Buy According to Hedge Funds

8. Riskified Ltd. (NYSE:RSKD)

Number of Hedge Fund Investors: 18

Stock Price as of December 23: $4.64

Riskified Ltd. (NYSE:RSKD) is a leading provider of AI-driven fraud prevention solutions for e-commerce merchants. The company provides tools to help online retailers identify and prevent fraudulent transactions, thereby improving approval rates for legitimate orders. The platform serves major e-commerce brands across industries such as fashion, electronics, and travel. Riskified Ltd.’s (NYSE:RSKD) revenue comes from transaction-based fees and long-term contracts with enterprise clients.

To drive future growth, Riskified Ltd. (NYSE:RSKD) is focusing on several key strategic initiatives. The company is expanding its merchant base through targeted new business generation, particularly in emerging verticals such as food and remittance. In Q3, the company introduced a new Chargeback Guarantee product and added a grocery merchant client, which has a Gross Merchandise Value (GMV) of over $1 billion. This not only diversifies the company’s revenue streams but also strengthens its network effect, as each new merchant adds to the richness of the data set and enhances the predictive capabilities of its models.

Additionally, Riskified Ltd. (NYSE:RSKD) is investing in the continuous improvement of its technology and product offerings. The company recently launched the Policy Protect suite of tools, which automates the management of customer-facing policies. This tool helps merchants combat advanced fraud tactics, such as automated return and refund requests.  Riskified Ltd. (NYSE:RSKD) is also maintaining a disciplined approach to financial management and capital allocation. The company has achieved positive adjusted EBITDA for the fourth quarter in a row. As of Q3, the company has a strong balance sheet and liquidity position, with $390 million in cash, deposits, and investments and no debt.