1. Taboola.com Ltd. (NASDAQ:TBLA)
Number of Hedge Fund Holders: 28
Taboola.com Ltd. (NASDAQ:TBLA) is a technology company specializing in content recommendations across the open web. Leveraging an AI-based algorithmic engine, TBLA partners with digital properties, including websites, devices, and mobile apps, to suggest editorial content and advertisements to users. The company’s platform enables over 1.4 billion people to discover new and relevant content, enhancing user engagement and monetization opportunities for publishers. Advertisers utilize TBLA’s services to reach extensive audiences, driving conversions and business results.
Taboola.com Ltd. (NASDAQ:TBLA) achieved record financial performance in 2024, delivering gross profit of $667 million, representing 25% growth YoY, and adjusted EBITDA of $201 million, which more than doubled from the previous year. The company significantly exceeded its free cash flow target, generating $149 million, which was 49% above the original minimum target of $100 million. In a strategic shift, TBLA announced the launch of Realize, a new performance advertising platform aimed at expanding beyond native advertising to capture a $55 billion market opportunity in performance advertising.
For 2025, management is guiding for 2% gross profit and 2% adjusted EBITDA growth, maintaining a 30% EBITDA margin. To demonstrate confidence in its future, Taboola.com Ltd. (NASDAQ:TBLA) announced a $200 million expansion to its buyback authorization, bringing the total current authorization to approximately $240 million. The company’s strategy focuses on three main assets: unique first-party data reaching 600 million people daily, AI capabilities with 650 engineers, and unmatched supply partnerships with major publishers like NBC News, Disney, Yahoo, and Apple. The strong outlook is supported by at least two insiders buying more than $100,000 worth of company stock in the last six months.
Overall, Taboola.com Ltd. (NASDAQ:TBLA) ranks first on our list of the 12 penny stocks with insider buying in 2025. While we acknowledge the potential of TBLA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TBLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
