5 Best Young Stocks to Buy and Hold For Next 20 Years

3. ironSource Ltd. (NYSE:IS)

Number of Hedge Fund Holders: 30     

ironSource Ltd. (NYSE:IS) operates a business platform for app developers and telecom operators in Israel and internationally. It is one of the major IPO stocks to invest in. On October 4, ironSource launched its Return On Ad Spend (ROAS) optimizer. ROAS optimizer allows app marketers to set their own targeted ROAS goal and leave it to drive to the highest scale possible. This optimizer saves hours of manual work. This also provides marketers to get a visualization of the results. 

On August 16, Wolfe Research analyst Gal Munda maintained a Peer Perform rating on ironSource (NYSE:IS) stock, noting that the company’s deal with Unity will be a game changer for both firms. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Havens Advisors is a leading shareholder in ironSource Ltd. (NYSE:IS), with 796,553 shares worth more than $2.7 million.  

In its Q1 2022 investor letter, Argosy Investors, an asset management firm, highlighted a few stocks and ironSource Ltd. (NYSE:IS) was one of them. Here is what the fund said:

“I purchased IronSource early in the quarter and have seen ironSource Ltd. (NYSE:IS) decline in value nearly 32% through the end of the quarter, and further after the quarter. IronSource is a platform that helps game publishers maximize the financial success of their games and earns a cut of the revenues generated using its technology. They have grown extremely quickly in recent years, as gaming has become an increasingly popular outlet for free time. They grew 46% last quarter to over $150 million in quarterly revenue, at an operating margin of 18%. They expect to generate $800 million in revenue this year, and likely $0.15 per share of free cash flow in 2022, with the potential for $0.25 a few years from now. I believe that IS has a very profitable business model with the potential for a long runway of growth. At the same time, I could have chosen a better purchase price to make the investment, and that has become clear quite quickly. At current prices below $4 per share, returns from here can be attractive over the course of a few years.”