In this article, we will take a detailed look at Billionaire Israel Englander’s 10 Stock Picks with Huge Upside Potential.
Millennium Management is a globally recognized investment firm specializing in multi-strategy hedge fund offerings. Founded in 1989 by Israel A. Englander and Ronald Shear, the firm initially launched with $35 million in capital, including a $5 million contribution from Englander and additional investment secured from Canadian financiers, the Belzberg brothers. Despite early struggles that led to Shear’s departure just six months after its inception, Millennium evolved into one of the largest and most successful alternative asset management firms. As of late 2024, it boasts over $75.8 billion in assets under management.
Headquartered in New York, Millennium has expanded its operations globally, establishing 18 primary offices in major financial hubs including London, Dubai, Singapore, and Tokyo. The firm employs a platform-based investment approach, with approximately 330 independent investment teams operating under a decentralized model. These teams deploy a wide array of strategies across multiple asset classes, including equities, fixed income, commodities, and derivatives. Millennium’s core strategies focus on fundamental equity research, equity arbitrage, macroeconomic-driven fixed income investments, and commodity-based trades. Through this highly diversified, data-driven model, the firm aims to generate consistent, high-quality returns while managing risk effectively across global markets.
Under the leadership of Israel Englander, who remains the driving force behind the firm, Millennium has cultivated a disciplined risk management framework and continuously refined its investment strategies. A graduate of New York University who left his MBA program early to trade on the American Stock Exchange, Englander applied his market-making and derivatives trading expertise to build Millennium into an institutional powerhouse. His innovative approach emphasizes capital allocation to specialized teams rather than direct investment decisions, fostering a dynamic and competitive investment environment that attracts top talent from around the world. By 2011, Millennium was managing approximately $13 billion in assets, and in recent years, Englander has explored opportunities to sell a minority stake in the firm, signaling a move toward broader institutional ownership.
As of the fourth quarter of 2024, Millennium reported managing $204.64 billion in 13F securities, with its top ten holdings accounting for 15.5% of its portfolio. It has consistently ranked among the highest-grossing hedge funds, achieving the fourth-largest net gains of any hedge fund since inception. Millennium’s commitment to generating superior risk-adjusted returns, maintaining a diversified investment approach, and embracing strategic innovation has earned it a formidable reputation among institutional investors. With its expansive global presence, proven track record, and disciplined investment philosophy, Millennium Management continues to be a dominant force in the global hedge fund industry.
Israel Englander of Millennium Management
Our Methodology
For this article, we searched through Millennium Management’s Q4 2024 13F filings to identify billionaire Israel Englander’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 33% based on analyst ratings and discussed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
Billionaire Israel Englander’s 10 Stock Picks with Huge Upside Potential
10. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders as of Q4: 66
Millennium Management’s Equity Stake: $305.04 Million
Upside Potential as of April 26: 33.84%
FedEx Corporation (NYSE:FDX) is an American multinational conglomerate specializing in transportation, e-commerce, and business services. Headquartered in Memphis, Tennessee, the company has long been recognized as a global leader in logistics and delivery solutions. It ranks 10th on the list of Israel Englander’s stock picks with huge upside potential.
In its fiscal third quarter, FedEx Corporation (NYSE:FDX) reported a 2% year-over-year revenue increase, reaching $22.2 billion. Adjusted earnings totaled $1.09 billion, or $4.51 per share, an improvement from $970 million, or $3.86 per share, recorded in the same quarter a year earlier. Despite this year-over-year growth in both revenue and adjusted earnings, the results fell short of consensus analyst estimates.
Looking ahead, the company revised its full-year outlook, now anticipating revenue to be flat or slightly lower compared to the previous fiscal year, a downgrade from its prior guidance of “approximately flat” growth. Additionally, FedEx Corporation (NYSE:FDX) lowered its full-year earnings per share forecast for the third consecutive quarter, adjusting the range downward to between $15.15 and $15.75, compared to the earlier projection of $16.45 to $17.45. These revised forecasts reflect ongoing challenges and uncertainties within the broader economic environment affecting FedEx’s performance expectations.
In the fourth quarter of 2024, Millennium Management significantly increased its investment in FedEx Corporation (NYSE:FDX), increasing its holdings to over 1 million shares—a 756% rise from the 126,710 shares held in the previous quarter. This expansion brought the fund’s total stake in the company to an estimated $305 million. Additionally, data from Insider Monkey revealed that by the end of Q4 2024, 66 out of 1,009 hedge funds had positions in FedEx, collectively holding nearly $2.77 billion in shares. This marked a significant increase from Q3, when only 55 hedge funds had investments in the company.
9. Centene Corporation (NYSE:CNC)
Number of Hedge Fund Holders as of Q4: 72
Millennium Management’s Equity Stake: $371.24 Million
Upside Potential as of April 26: 33.96%
Centene Corporation (NYSE:CNC), a for-profit healthcare company based in St. Louis, Missouri, operates as an intermediary for government-sponsored and privately insured healthcare programs and ranked No. 25 on the 2023 Fortune 500 list.
In the first quarter of 2025, Centene Corporation (NYSE:CNC) reported quarterly earnings of $2.90 per share, exceeding the consensus estimate of $2.52 per share and up from $2.26 per share in the same quarter a year earlier. Net income rose to $1.3 billion, or $2.63 per share, compared to $1.1 billion, or $2.16 per share, in the first quarter of 2024. The company’s premium and service revenues increased 17% year-over-year, reaching $42.5 billion, primarily driven by membership growth and premium increases in its prescription drug plan business, as well as strong product positioning and overall market expansion in the marketplace business. Centene attributed its robust first-quarter profits to a significant rise in Obamacare enrollment, which fueled both membership and revenue growth.
Centene Corporation (NYSE:CNC) CEO Sarah London recently discussed the company’s key policy priorities, focusing particularly on potential changes to Medicaid and the future of enhanced subsidies for Affordable Care Act (ACA) plans. According to London, there appears to be little appetite either in Congress or within the White House for broad cuts to Medicaid benefits, offering some reassurance regarding the stability of the program. However, she noted that there are ongoing conversations about implementing targeted policy changes for the Medicaid expansion population, such as introducing work requirements for individuals who gained coverage through the expansion. These discussions reflect the broader policy environment Centene must navigate as it continues to grow its presence in government-sponsored healthcare markets.
During the fourth quarter of 2024, Millennium Management sharply boosted its position in Centene Corporation (NYSE:CNC), growing its holdings by 205% to surpass 6 million shares, up from 2 million shares in the prior quarter. This substantial increase brought the fund’s total investment in Centene to approximately $371 million.
8. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders as of Q4: 86
Millennium Management’s Equity Stake: $505.32 Million
Upside Potential as of April 26: 34.93%
ConocoPhillips (NYSE:COP) is a leading independent exploration and production (E&P) company headquartered in Houston, Texas. The company engages in the exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, natural gas liquids, and liquefied natural gas worldwide.
In its fourth-quarter 2024 financial report, ConocoPhillips (NYSE:COP) announced earnings of $2.3 billion, or $1.90 per share, compared to $3.0 billion, or $2.52 per share, in the same period the previous year. For the full year, earnings totaled $9.2 billion, or $7.81 per share, down from $11.0 billion, or $9.06 per share, reported in 2023.
Despite the year-over-year earnings decline, the company continued to execute its returns-focused value strategy. According to Ryan Lance, chairman and CEO, ConocoPhillips (NYSE:COP) showcased strong operational performance, returned $9.1 billion to shareholders, and expanded its portfolio through the acquisition of Marathon Oil. Looking ahead, the company aims to achieve more than $1 billion in integration-related run rate synergies by year-end 2025, with over half of those efficiencies already factored into its announced capital guidance. The company ended 2024 with $6.4 billion in cash and short-term investments and $1.1 billion in long-term investments.
ConocoPhillips (NYSE:COP) has set a 2025 target to return $10 billion to shareholders, underscoring its commitment to capital returns. As part of this initiative, the company declared a first-quarter ordinary dividend of $0.78 per share, payable on March 3, 2025, to stockholders of record as of February 17, 2025.
Diamond Hill Large Cap Strategy stated the following regarding ConocoPhillips (NYSE:COP) in its Q2 2024 investor letter:
“Other bottom contributors in Q2 included CarMax, Target Corporation and ConocoPhillips (NYSE:COP). Shares of oil and gas exploration and production company ConocoPhillips declined against a backdrop of lower oil prices in Q2, as well as concerns about the expensive though strategically sound acquisition of Marathon Oil.”
7. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders as of Q4: 150
Millennium Management’s Equity Stake: $571.95 Million
Upside Potential as of April 26: 35.56%
UnitedHealth Group Incorporated (NYSE:UNH) is an American multinational for-profit company specializing in health insurance and healthcare services, headquartered in Eden Prairie, Minnesota. Operating through its two primary businesses, UnitedHealthcare for insurance products and Optum for healthcare services, the company stands as the world’s ninth-largest by revenue and the largest healthcare company globally based on revenue. Despite its dominant market position, the company recently faced significant challenges that shook investor confidence.
In its latest earnings report, UnitedHealth Group Incorporated (NYSE:UNH) surprised investors with an “unusual and unacceptable” earnings miss, as per its CEO. The company reported adjusted earnings of $7.20 per share for the quarter, falling short of analysts’ expectations of $7.29 per share. This disappointing performance triggered a sharp market reaction, with UnitedHealth shares plunging 23% in heavy trading, causing a ripple effect throughout the healthcare sector.
Adding to concerns, UnitedHealth Group Incorporated (NYSE:UNH) revised its full-year outlook downward. It now expects 2025 adjusted profit per share to range between $26 and $26.50, a significant cut from its previous guidance of $29.50 to $30 per share. Analysts had anticipated a 2025 profit closer to $29.73 per share. The lowered forecast was attributed to higher-than-expected medical costs, underscoring the financial pressures currently facing the company even as it maintains its leadership position in the global healthcare market.
As of Q4 2024, Millennium Management significantly increased its holdings in UnitedHealth Group Incorporated (NYSE:UNH) to over 1.13 million shares, marking a 344% rise from 254,818 shares in Q3. The fund’s stake in the company is now valued at approximately $571 million. Insider Monkey’s database indicated that 150 hedge funds out of the 1,009 funds held stakes in the company at the end of Q4 2024, with a value of nearly $15.98 billion, as opposed to 112 funds in Q3. This surge in institutional interest underscores strong confidence in the stock’s long-term growth and suggests optimism about the company to maintain profitability in a competitive financial sector.
Parnassus Growth Equity Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:
“We sold two Health Care positions during the quarter, pharmaceutical company AstraZeneca and insurer UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth’s business model is becoming higher-risk, which coupled with slowing Medicare Advantage growth and regulatory uncertainty led to us exiting the position.
After the UnitedHealth stock price recovered to its historical multiple in early November, we felt it was an opportune time to sell based on our concerns about slowing Medicare Advantage growth and the company’s growing business complexity and risk.”
6. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders as of Q4: 108
Millennium Management’s Equity Stake: $311.56 Million
Upside Potential as of April 26: 39.33%
The Walt Disney Company (NYSE:DIS), headquartered at the Walt Disney Studios complex in Burbank, California, is an American multinational mass media and entertainment conglomerate. For the first fiscal quarter of 2025, which ended on December 28, 2024, Disney reported strong financial results. Revenues rose by 5% to $24.7 billion, compared to $23.5 billion in the same quarter of fiscal 2024. Income before income taxes increased by 27% to $3.7 billion, up from $2.9 billion the previous year. Diluted earnings per share (EPS) grew by 35% to $1.40 from $1.04, while total segment operating income rose by 31% to $5.1 billion from $3.9 billion. Additionally, adjusted EPS increased 44% to $1.76 from $1.22. These results reflect Disney’s continued strength across its diverse portfolio of businesses, demonstrating its resilience and growth potential in the evolving entertainment landscape.
In a message released by Disney’s CEO in April 2025, he highlighted Disney’s commitment to making a positive impact, not only through its creations but also through its investments in people and communities. The Walt Disney Company (NYSE:DIS) employs more than 160,000 workers across all 50 states in the US, with initiatives such as a $30 billion investment in domestic theme parks expected to create 10,000 new jobs in Florida and California. The company also plans to spend over $23 billion in 2025 on film, television, and licensed content production, predominantly within the U.S., and has invested $370 million in higher education and professional development through its Disney Aspire program.
The CEO also proudly discussed Disney’s philanthropic efforts, particularly its long-standing support of children in need. The Walt Disney Company (NYSE:DIS) remains the world’s leading wish-granter through its partnership with Make-A-Wish, fulfilling a child’s wish every hour. The company recently completed a $100 million commitment to enhance children’s hospital experiences globally, reinforcing its mission to use the power of Disney stories to uplift and heal. This dedication to doing good, both locally and globally, underscores The Walt Disney Company (NYSE:DIS)’s enduring promise to be a force for positive change, carrying forward its founding spirit into its second century.
5. IQVIA Holdings Inc. (NYSE:IQV)
Number of Hedge Fund Holders as of Q4: 51
Millennium Management’s Equity Stake: $269.33 Million
Upside Potential as of April 26: 41.57%
Ranking fifth among billionaire Israel Englander’s stock picks with huge upside potential, IQVIA Holdings Inc. (NYSE:IQV) is a leading global provider of clinical research services, commercial insights, and healthcare intelligence. The company was recently recognized as a “front-runner generative AI leader” for the life sciences industry by Everest Group. IQVIA was the only CRO to receive the highest ranking of front-runner, reflecting the value impact of its end-to-end generative AI capabilities. Additionally, IQVIA stands out as the only CRO with a dedicated technology business unit to achieve this distinction.
In its fourth-quarter financial results, IQVIA Holdings Inc. (NYSE:IQV) reported earnings per share (EPS) of $3.12, slightly above the analyst estimate of $3.11. Revenue for the quarter came in at $3.96 billion, surpassing the consensus estimate of $3.93 billion. Looking ahead, IQVIA projects full-year 2025 EPS between $11.70 and $12.10, compared to the analyst consensus of $11.88. The company also expects full-year 2025 revenue to range between $15.73 billion and $16.13 billion, closely aligned with the consensus estimate of $16.03 billion.
In the fourth quarter of 2024, Millennium Management increased its stake in the company by 302%. By the end of the December quarter, it held over 1.37 million shares in IQVIA Holdings Inc. (NYSE:IQV), valued at over $269 million, as compared to 341,237 by the end of the previous quarter. The growing hedge fund investment underscores the fund’s strong confidence in IQVIA’s growth potential.
Hardman Johnston Global Equity Strategy stated the following regarding IQVIA Holdings Inc. (NYSE:IQV) in its Q4 2024 investor letter:
“The top sector detractors from relative performance during the quarter were Health Care and Consumer Discretionary. Within Health Care, the top detracting holdings were IQVIA Holdings Inc. (NYSE:IQV) and Elanco Animal Health, Inc. IQVIA is a contract research organization (CRO) serving biopharma industry. The company lowered its 2024 guidance due to disruptions on the clinical side of the business, with one large cancellation and two trial starts pushed into 2025. Short-term disruptions in this segment should get resolved during the first half of 2025. However, the Technology and Analytical Solutions side of the business had a positive quarter, returning to growth, with outlook for continued growth in 2025.”
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Millennium Management’s Equity Stake: $1.34 Billion
Upside Potential as of April 26: 51.78%
NVIDIA Corporation (NASDAQ:NVDA), a global leader in GPU-accelerated computing, is widely recognized for its groundbreaking work in graphics processing units (GPUs) that power gaming, professional visualization, data centers, and the automotive industry.
For the fourth quarter of fiscal 2025, NVIDIA Corporation (NASDAQ:NVDA) reported record revenue of $39.3 billion, reflecting a 12% increase from the previous quarter and a staggering 78% year-over-year growth. This achievement was largely fueled by the company’s Data Center segment, which alone posted a record $35.6 billion in quarterly revenue, up 16% from Q3 and an impressive 93% increase compared to the previous year. GAAP earnings per diluted share for the quarter were $0.89, representing a 14% sequential rise and an 82% increase year-over-year.
NVIDIA Corporation (NASDAQ:NVDA) has encountered a major challenge in its AI business following new export restrictions imposed by the Trump administration, which now bar the company from selling its H20 AI accelerators in China—a market previously expected to generate around $16 billion in revenue. In response, CEO Jensen Huang visited China to meet with officials, including Ren Hongbin of the China Council for the Promotion of International Trade, to reaffirm NVIDIA’s commitment to the Chinese market despite the regulatory hurdles. Accompanied by DeepSeek founder Liang Wenfeng, a key customer, Huang emphasized that the company will continue its operations in China. However, NVIDIA now faces the urgent task of developing a compliant alternative product while dealing with rising competition from Chinese tech giants like Huawei, who are advancing their own AI systems that could rival NVIDIA’s latest offerings.
Despite external challenges such as energy demands, investor confidence in NVIDIA Corporation (NASDAQ:NVDA) remains robust. The stock carries a current price target of $168.49, with analysts projecting a substantial upside potential of 51.78%. This strong outlook positions NVIDIA as fourth among billionaire Israel Englander’s stock picks with the highest upside potential, reinforcing its continued appeal to investors eager to capitalize on the transformative growth of artificial intelligence and next-generation computing technologies.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. Shares contributed to performance during the quarter, driven by strong demand for its data center products, especially the Hopper H200 chips, which generated double-digit billions in revenue, marking the fastest product ramp in the company’s history. Management provided fiscal fourth-quarter revenue guidance above analyst estimates, along with resilient operating margins supported by robust demand and limited competition. In our view, Nvidia’s leadership in scaling AI infrastructure, including advancements in inference and test-time scaling (i.e., reasoning during inference), is driving adoption among enterprises and startups, providing continued demand for its high-performance chips and software solutions. As older-generation chips are repurposed for inference and new clusters are deployed, we believe Nvidia is well-positioned to capitalize on growing compute needs across AI applications.”
3. Cenovus Energy Inc. (NYSE:CVE)
Number of Hedge Fund Holders as of Q4: 39
Millennium Management’s Equity Stake: $447.08 Million
Upside Potential as of April 26: 58.28%
Cenovus Energy Inc. (NYSE:CVE), a Canadian oil and natural gas company headquartered in Calgary, Alberta, operates from its offices in Brookfield Place. The company continues to demonstrate strong operational and financial performance, both in its Upstream and Downstream businesses.
In the fourth quarter of 2024, Cenovus Energy Inc. (NYSE:CVE) generated over $2.0 billion in cash from operating activities, $1.6 billion of adjusted funds flow, and $123 million of free funds flow. The Upstream segment maintained robust performance, achieving production of 816,000 barrels of oil equivalent per day (BOE/d), including a new quarterly Oil Sands production record of 628,500 BOE/d. On the Downstream side, total crude throughput rose by nearly 24,000 barrels per day from the previous quarter to 666,700 barrels per day, reflecting an aggregate utilization rate of 93%. However, total revenues for the fourth quarter stood at $12.8 billion, a slight decline from $13.8 billion in the prior quarter, primarily due to lower commodity prices. Upstream revenues remained stable at $7.3 billion compared to the third quarter, while Downstream revenues fell to $7.8 billion from $8.8 billion.
For the full year 2024, Cenovus Energy Inc. (NYSE:CVE) reported total revenues of $54.3 billion and a total operating margin of $10.8 billion, compared to $52.2 billion in revenues and an operating margin of $11.0 billion in 2023. The year-over-year revenue increase was largely driven by higher production volumes and the positive impact of narrowing heavy Canadian crude differentials following the launch of the Trans Mountain pipeline expansion project. However, the operating margin experienced a slight decline due to narrower downstream crack spreads, higher turnaround costs, and elevated transportation and blending expenses. Despite these challenges, Cenovus Energy’s operational achievements and strategic infrastructure developments continue to solidify its strong position within the North American energy sector.
2. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders as of Q4: 95
Millennium Management’s Equity Stake: $492.02 Million
Upside Potential as of April 26: 69.93%
AppLovin Corporation (NASDAQ:APP), a leading mobile technology company headquartered in Palo Alto, California, specializes in helping developers market, monetize, and analyze their apps through platforms such as MAX, AppDiscovery, and SparkLabs. In its most recent financial results, AppLovin reported strong growth, with Q4 2024 revenue rising 44% year-over-year to $1.37 billion and net income surging 248% to $599.2 million. For the full year, total revenue increased 43% to $4.71 billion, while net income climbed an impressive 343% to $1.58 billion.
The company’s advertising segment was the primary driver of this success, with Q4 advertising revenue jumping 73% year-over-year to $999.5 million and full-year advertising revenue increasing 75%. Although the apps revenue segment saw a slight 1% decline in Q4, it still achieved a 3% increase annually. AppLovin Corporation (NASDAQ:APP) also demonstrated strong financial discipline by executing significant share buybacks, retiring and withholding 1.6 million shares in Q4 and 25.7 million shares over the full year, totaling $2.1 billion. The company generated $701 million in net cash from operating activities in Q4 and $2.1 billion for the year, with free cash flow closely mirroring these figures, underscoring its financial strength.
Looking ahead to the first quarter of 2025, AppLovin Corporation (NASDAQ:APP) has issued an optimistic outlook, projecting revenue between $1.355 billion and $1.385 billion. The company also anticipates an adjusted EBITDA of $855 million to $885 million, reflecting a strong margin of 63% to 64%.
In the fourth quarter of 2024, Millennium Management expanded its stake in AppLovin Corporation (NASDAQ:APP) to over 1.5 million shares, reflecting a 114% increase from the previous quarter. This holding, now valued at approximately $492 million, is second on billionaire Israel Englander’s list of stock picks with huge upside potential. Institutional interest in the stock also surged, with 95 out of 1,009 hedge funds tracked by Insider Monkey holding positions worth nearly $11.96 billion by the end of Q4, up from 51 funds in the prior quarter. The growing hedge fund investment highlights strong confidence in AppLovin’s growth potential.
Carillon Eagle Mid Cap Growth Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q1 2025 investor letter:
“AppLovin Corporation (NASDAQ:APP) is a platform for mobile application developers to grow their apps through user acquisition, monetization, and analytics. The company continued to report healthy growth and provided guidance indicating robust future growth, thanks to the strong reception of its latest tools by existing customers and its expansion into new verticals. However, post-earnings, shareholders became concerned about a short seller’s report questioning data collection practices. Management addressed these issues thoroughly, but lingering questions and general tariff related news impacting the broader market have compounded concerns.”
1. The Trade Desk, Inc. (NASDAQ:TTD)
Number of Hedge Fund Holders as of Q4: 63
Millennium Management’s Equity Stake: $298.30 Million
Upside Potential as of April 26: 75.49%
Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk, Inc. (NASDAQ:TTD) is an American multinational technology company headquartered in Ventura, California, specializing in real-time programmatic marketing automation technologies, products, and services. Its cloud-based software enables advertisers to plan, place, and target their online ads more effectively by leveraging data-driven insights to personalize digital content delivery.
For the fourth quarter of 2024, The Trade Desk, Inc. (NASDAQ:TTD) reported revenue of $741 million, representing a 22.3% year-over-year increase, although slightly missing analyst estimates of $759.5 million. Adjusted earnings per share (EPS) came in at $0.59, beating analyst expectations of $0.57. The company’s adjusted EBITDA was $350 million, reflecting a 47.2% margin but falling short of the $365.9 million forecast. Operating margin improved to 26.4%, up from 23.8% in the same quarter of the previous year, although free cash flow margin dropped to 23.9%, down from 35.4% in the previous quarter.
Looking ahead, The Trade Desk, Inc. (NASDAQ:TTD) provided revenue guidance for the first quarter of calendar year 2025 at $575 million at the midpoint, below analyst estimates of $582 million. EBITDA guidance was also lower than expected at $145 million compared to the projected $192.7 million. Despite these softer forecasts, the company maintains a robust market capitalization of $59.33 billion, underlining its strong position in the programmatic advertising industry.
Overall, TTD ranks first among Israel Englander’s 10 stock picks with huge upside potential. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TTD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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