We recently published a list of Top 10 Stocks to Buy According to Think Investments. In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against other top stocks to buy according to Think Investments.
Think Investments is an investment firm based in San Francisco, with additional offices in Singapore and India. The firm focuses on long-term investments in both public and private companies, emphasizing creative research to identify high-potential opportunities. Specializing in technology-driven early-stage businesses, Think Investments partners with its strong management teams to build differentiated companies that generate high returns on invested capital. With a deep understanding of emerging markets and global technology, the firm is well-positioned to navigate complex investment landscapes.
Founded in 2013 by Shashin Shah, Think Investments has established itself as a key player in global markets. The firm has over $1 billion invested in Indian companies operating in the financial services, healthcare, technology, and consumer sectors. Think’s investment strategy is guided by Shah’s extensive experience in global equity markets, ensuring a disciplined approach to capital allocation. The firm’s commitment to long-term value creation has made it a trusted partner for relatively young companies looking to scale efficiently.
Shashin Shah, Founder and Managing Partner, brings decades of expertise in global investing. Before launching Think Investments, he was a partner at Valiant Capital, where he managed multiple international markets, including India, the U.S., Europe, Asia, the Middle East, and North Africa. Shah also worked at Blue Ridge Capital and Morgan Stanley, further honing his investing skills. His academic background includes a bachelor’s degree in computer engineering from the University of Mumbai and an MBA from the University of Texas, equipping him with a strong analytical and financial foundation.
In addition to leading Think Investments, Shah plays an active role in shaping the growth of innovative companies. He currently serves on the boards of Chaayos, a tea café chain, and Dream11, India’s leading fantasy sports platform. His leadership and strategic insights continue to drive Think’s success, solidifying its reputation as a premier investment firm in global markets.
As of its latest filing for the fourth quarter of 2024, Think Investments reported managing approximately $454.51 million in 13F securities, of which the firm’s top ten holdings account for 80.57%.
Our Methodology
The stocks discussed below were picked from Think Investments’ Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A marketing manager in a boardroom making decisions about the company’s social media management platform.
Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders as of Q4: 87
Think Investments’ Equity Stake: $39.72 Million
Reddit, Inc. (NYSE:RDDT) operates as an American social media platform by the same name, which is known for its user-driven content aggregation and community forums. The platform allows registered members to submit posts in the form of links, text, images, and video media, which are then upvoted or downvoted by other users based on their usefulness or popularity. The platform is structured around topic-specific communities called subreddits, fostering a wide range of discussions across various interests. Reddit, Inc. (NYSE:RDDT) went public in March of 2024, with the company and its shareholders raising about $750 million from its initial public offering.
In its fourth-quarter earnings report, Reddit, Inc. (NYSE:RDDT) reported strong financial performance, with revenue rising 71% year-over-year to $427.7 million, exceeding analysts’ expectations. Net income for Q4 also surged to $71 million, a tremendous increase from $18.5 million in the same quarter last year, reflecting significant profitability. Despite these financial gains, Reddit’s user growth missed analyst expectations, with daily active users reaching 101.7 million instead of the anticipated 103.24 million. Nevertheless, this still represented a sound 39% year-over-year growth in user engagement.
Reddit, Inc. (NYSE:RDDT)’s projections for the first quarter of 2025 remain optimistic, with expected revenue ranging between $360 million and $370 million. This guidance significantly surpasses the $243 million reported in the same period last year and indicates continued growth momentum. While the earnings report highlighted Reddit’s strong financial performance, the shortfall in user growth dampened investor enthusiasm, leading to a decline in the company’s stock during after-hours trading.
For a stock that only recently went public, Reddit, Inc. (NYSE:RDDT)’s financials are impressive, giving rise to hedge fund sentiment. By the end of Q4 2024, 87 out of 1,009 funds tracked by Insider Monkey held positions worth nearly $4.65 billion in the company, up from 52 funds in Q3. The rising institutional interest in the company highlights strong confidence in its growth potential, strengthening its position as a top stock to buy.
Overall, RDDT ranks 4th on our list of top stocks to buy according to Think Investments. While we acknowledge the potential of RDDT, 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 RDDT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
