We recently published a list of 10 Best New Stocks to Buy According to Billionaires. In this article, we are going to take a look at where ServiceTitan, Inc. (NASDAQ:TTAN) stands against other best new stocks to buy according to billionaires.
Overview of Q1 2025 IPO Activity
International IPO activity during the first quarter of 2025 was characterized by profound uncertainty coming from geo-political shifts and the ever-changing tariff policies around the globe. According to an April 10, 2025 report by EY Global, the global IPO market remained steady year-over-year in terms of volume but grew 20% in terms of value. The first quarter of 2025 witnessed a total of 291 IPOs with a total value of $29.3 billion. Notably, the United States was a key player as it posted the third-strongest Q1 performance with a total of 59 listings. On the other hand, the Asia-Pacific market also showed signs of recovery and the EMEA region remained steady year-over-year.
The current global macroeconomic environment has created both challenges and opportunities for the IPOs around the world. For instance, the tariff policies and the ongoing trade war have raised the expectations of inflation, casting uncertainty over the monetary policies. On the other hand, the geo-political tensions have led to increased budgetary spending around the world, thereby leading to a surge in investment in the Aerospace and Defence sector. The report by EY Global anticipates a surge in IPO activity for this segment. Moreover, the disruptive trends in artificial intelligence are allowing IPO candidates to enhance their market strategies and offerings using the technology. As per the report, AI technology has started to become an integral part of companies operating in the financial, health, and life sciences industries.
While the United States market witnessed a 51% increase in the number of IPOs when compared to 2024, however, the future looks uncertain. George Chan, EY Global IPO Leader highlighted that the growth in IPO activity during the first quarter was on the back of an optimistic market outlook at the start of the year. However, currently, many companies who had planned their IPOs in the first or second quarter of the year have delayed their public offering to later quarters or 2026. Chan advised that it is important for investors to look for companies with unshakeable fundamentals, agility, and adaptability to steer with the uncertainty of the market.
Our Methodology
To curate the list of 10 best new stocks to buy according to billionaires we used the Finviz stock screener and Insider Monkey’s Q4 2024 billionaire database. Using the screener we aggregated a list of companies that went public in the past 2 years. After sorting the list by market capitalization, we ranked each new stock in ascending order of the number of billionaire investors. We have also added the hedge fund sentiment around each stock. Please note that the data was recorded on April 25, 2025. Also, note that in cases where two or more stocks had an equal number of billionaire investors we used market capitalization as a tie-breaker.
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 business programmer monitoring the performance of a sophisticated software system.
ServiceTitan, Inc. (NASDAQ:TTAN)
Market Capitalization: $11.356 billion
Number of Hedge Fund Holders: 43
Number of Billionaires: 10
Total Value of Billionaire Holdings: $260,350,141
ServiceTitan, Inc. (NASDAQ:TTAN) is a cloud-based software technology that provides a technology platform for contractors and businesses. Its platform helps HVAC, plumbing, electrical, and other similar businesses manage various operations through a single platform. The company’s business lines include Core, FinTech, and Pro, which include advanced features for large businesses.
On April 25, KeyBanc raised the firm’s price target on the stock from $120 to $140, while keeping an Overweight rating on the shares. The firm mentioned that they believe that the company’s pro product cross-selling opportunity remains attractive thereby justifying the increase in target price. ServiceTitan, Inc. (NASDAQ:TTAN) reported its fiscal fourth quarter results for 2025 on March 13. The company grew its revenue by 29% year-over-year to reach $209.3 million. On the other hand, the platform revenue alone grew 30% during the same time to reach $200.1 million.
Baron Discovery Fund stated about ServiceTitan, Inc. (NASDAQ:TTAN) in its Q4 2024 investor letter. The fund believes that the company has a total addressable market of $1.5 trillion out of which $13 billion is serviceable today. On top of this, the company also has the first movers advantage. Here’s what the fund said about the company.
“ServiceTitan, Inc. (NASDAQ:TTAN) is the leading business management software platform for “the trades” (i.e HVAC, plumbing, electrical, pest control, roofing, etc.). The platform serves as a system of record offering clients nearly everything they need to run their businesses including customer relationship management (sales enablement, marketing automation, and customer service), field service management (scheduling/dispatching), enterprise resource planning (inventory), human capital management (compensation and payroll) and fintech (payments and consumer financing).
ServiceTitan operates in a large market. In just the U.S. and Canada, the trades are roughly a $1.5 trillion annual industry and ServiceTitan’s current set of solutions serve about $650 billion of this spend. This equates to about a $30 billion addressable market for the company, of which $13 billion is serviceable today. The industry is also resilient given that over 75% of U.S. residential trades jobs are non-discretionary in nature. Relative to its competition, ServiceTitan has several notable advantages including: 1) it is by far the leading end-to-end software platform built specifically for the trades that provides a strong return on investment to clients and would be very hard to catch at this point given it is virtually a one-stop-shop for all of a trade’s business’ technology needs; 2) it has a first mover advantage that allowed the company to build up broad-based customer trust over time; and 3) the company’s scale provides a big data advantage as ServiceTitan can use its industry leading data to make continuous improvements to its product offerings and connect previously disparate processes for customers…” (Click here to read the full text)
Overall, TTAN ranks 7th on our list of best new stocks to buy according to billionaires. While we acknowledge the potential of TTAN to grow, 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 TTAN 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.
