What Makes Ziff Davis (ZD) a Good Investment?

ZD -1.00%

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equities hit a record high in the third quarter, fueled by continued gains in technology and falling bond yields. Easing tariff rhetoric and renewed AI infrastructure investments boosted large tech stocks. In mid-September U.S. Federal Reserve lowered rates by 25 basis points. Against this backdrop, the fund returned -1.78% (net) compared to the Russell 2500 Growth Index’s 10.73% return. Sector positioning and the avoidance of names that do not meet the firm’s strict investment discipline led to the underperformance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Meridian Growth Fund highlighted stocks such as Ziff Davis, Inc. (NASDAQ:ZD). Ziff Davis, Inc. (NASDAQ:ZD) is a digital media and internet company. The one-month return of Ziff Davis, Inc. (NASDAQ:ZD) was -3.44%, and its shares lost 45.29% of their value over the last 52 weeks. On November 28, 2025, Ziff Davis, Inc. (NASDAQ:ZD) stock closed at $32.82 per share, with a market capitalization of $1.346 billion.

Meridian Growth Fund stated the following regarding Ziff Davis, Inc. (NASDAQ:ZD) in its third quarter 2025 investor letter:

"Ziff Davis, Inc. (NASDAQ:ZD)operates through two primary segments: Business Cloud Services and Digital Media. The management team has a demonstrated track record of disciplined capital allocation and value creation, particularly through strategic, accretive acquisitions. The stock rebounded following the company’s first return to organic growth in nearly four years, marking a clear inflection point and helping to restore investor confidence. EBITDA margin expansion reflected a healthy balance between profitability and reinvestment. Additionally, enhanced segment-level disclosure has improved transparency, enabling more robust sum-of-the-parts analysis and allowing the market to better assess intrinsic value. We believe sustained organic growth, combined with continued disciplined M&A execution, provides a path for further multiple expansion. Given the company’s attractive valuation and improving fundamentals, we maintained our position during the period."

Ziff Davis, Inc. (NASDAQ:ZD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Ziff Davis, Inc. (NASDAQ:ZD) at the end of the third quarter, which was 24 in the previous quarter. In Q3 2025, Ziff Davis, Inc. (NASDAQ:ZD) reported $363.7 million in revenue, compared with revenues of $353.6 million for the prior year period. While we acknowledge the potential of Ziff Davis, Inc. (NASDAQ:ZD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Ziff Davis, Inc. (NASDAQ:ZD) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.