Three Potential Shares That May Triple in Value Once More by 2025
Three Potential Shares That May Triple in Value Once More by 2025
Some of the hottest investments in 2025 might shock you. Over a hundred stocks with market caps over $2 billion almost doubled within the previous year. Surprisingly, a heritage airline, a dating app on the web, and even two Argentinian banks were among the unexpected victors.
Although it's highly unlikely they'll repeat their success in 2025, I have a few names that I believe have the potential to double again. Reddit (RDDT at 0.25%), Qifu (QFIN at 1.75%), and Hims and Hers Health (HIMS at -3.22%) outperformed the market in 2024 and show no signs of slowing down. Here's a closer look at these three investments that I think will double a second time in 2025.
1. Reddit
Skeptics eagerly avoid investing in initial public offerings (IPOs). They prefer making sure that the investments are proven blue-chip stocks before adding them to their portfolio, even when they've become popular household names.
Reddit dominated as one of the most successful IPOs of 2024 when it debuted at $34. Despite its short time on the market, the company's stock has soared an astonishing 387%, almost quadrupling since its market debut in March. This is a surprising feat for a popular online forum boasting millions of active users and billing itself as a "community of communities."
Opponents often point out that Reddit's community is famously opposed to monetization. However, the numbers tell a different story. Although Reddit's revenue growth slowed from 38% in 2022 to 21% in 2023, it swiftly rebounded in 2024's first three quarterly reports. The company even reported a quarterly profit for the first time in 2024, generating positive earnings outside of the normally profitable fourth quarter.
Critics suggested that Reddit's IPO was merely an exit strategy when revenue growth slowed. However, the platform has proven them wrong. In fact, revenue growth has accelerated in each of 2024's first three quarters, with a stunning 68% increase in the latest report.
Reddit boasts nearly 100 million daily active users, a 47% increase compared to a year ago. Advertising makes up a significant 90% of Reddit's revenue and continues to be a lucrative source of income. The online community attracts a unique, young demographic that's hard to find elsewhere, making it a valuable platform for brands to advertise on.
International expansion also offers significant growth potential. While half of Reddit's user base is located outside of the US, only 17% of its total revenue comes from international markets.
2. Qifu
For investors seeking a stock that's already doubled in 2024 yet still considered undervalued, look no further than Qifu. This credit-tech platform aims to serve the underserved consumer and small business market in China. An impressive 81% of Qifu's users reside in smaller rural cities, and 70% of its customers are under 40.
Qifu adds 12% more cumulative users with approved credit lines annually, now boasting over 55 million approved users. The platform uses AI-powered credit assessment capabilities to connect its consumers and businesses with the best-fit partner from a network of 162 financial institutions.
Revenue remained flat in 2022 and 2023 before registering modest growth in 2024. Despite its stellar 138% increase in 2024, Qifu is still cheap on an earnings multiple basis, with a forward P/E ratio of just seven.
Investors often express skepticism about Chinese stocks. However, Qifu has been consistently profitable for the past six years and has even begun returning capital to shareholders through share buyback programs. Qifu has since increased its dividend by over 150% since implementing a payout policy just three years ago.
3. Hims and Hers Health
Fittingly closing out our list is Hims and Hers, the telemedicine specialist that has skyrocketed 183% in 2024. Initially primarily a resource for men seeking discreet solutions to hair loss and erectile dysfunction, the platform has since expanded its offerings to cover virtually every aspect of health care. Billed as a more convenient alternative to in-office consultations, Hims and Hers has become a household name in the telehealth space.
Revenue growth has been consistently strong, with at least 45% growth in every quarter since the company went public. In fact, the latest report saw an impressive year-over-year increase of 77%. The company also turned a profit in 2024, marking a significant milestone.
Despite its success, there are risks to investing in Hims and Hers. Regulatory and competitive challenges persist, but the company has proven resilient in the face of adversity. Analysts expect revenue and earnings growth to slow in 2025, but the momentum appears to be on Hims and Hers' side. The company's ability to defy expectations has proven impressive so far.
- Given the strong performance of Reddit in 2024, some investors might consider it as a potential investment in finance, with the aim to double their money again in 2025.
- Qifu, an undervalued credit-tech platform in China that has already doubled in 2024, could be an attractive investment option for those seeking opportunities in the finance sector, especially considering its profitable track record and expanding user base.