10 Best Emerging Tech Stocks to Buy Now

7. Adtran Holdings Inc. (NASDAQ:ADTN)

Market Capitalization as of September 11: $410.41 million

Number of Hedge Fund Holders: 24

Adtran Holdings Inc. (NASDAQ:ADTN) is a fiber networking and telecommunications company that provides networking solutions, primarily focused on serving the needs of broadband access networks. Products and services include broadband access equipment, customer premises equipment (CPE), and software solutions.

Q2 2024 revenues of $225.99 million were similar to that of Q1 2024 revenues and slightly above the midpoint of the company’s guidance, but overall, it was down 30.97% year-over-year. The loss per share was $0.24. This was despite the reduction of $34.2 million in inventories compared to Q1.

International revenues made up 52.4% of total revenues and domestic revenues contributed 47.6%. The company’s network solutions segment accounted for 79.3% of revenues in Q2 2024, but overall revenue was well-balanced across 3 segments: Subscriber Solutions (36.5%), Access and Aggregation solutions (30.9%), and Optical networking solutions (32.6%).

While Subscriber Solutions was up 0.9% year-over-year, Access & Aggregation revenue was down 31.9% year-over-year, and the optical networking solutions were down 48.5%. Growth in the US was offset by declines in shipments to large European customers.

In Europe, the company sees opportunities with large operators. In the US, it’s focusing on small to mid-size operators. It added 12 new Fiber-to-the-Prem customers and 16 new customers for its SDG in-home platforms. Adtran Holdings Inc. (NASDAQ:ADTN) has also invested in WiFi 6 and WiFi 7 platforms, along with Intellifi cloud-managed WiFi solutions, and won 11 new deals with existing customers for optical transport and networking solutions.

The company won 11 new deals with existing customers for optical transport and networking solutions and is growing enterprise and ICP customers. It recently launched new products and made enhancements to the Optical network automation capabilities, positioning it to take advantage of the growing fiber networks in Europe. 24 hedge funds hold long positions in Adtran Holdings Inc. (NASDAQ:ADTN).