Confluent (CFLT) Reported Disappointing Q4

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. Small-cap stocks had excellent increases in the fourth quarter, following disappointing results in the third quarter. The Russell 2000 Growth Index (up 12.75%) fell behind the Russell 2000 Value Index (up 15.25%) for the second consecutive quarter. Small-cap companies performed well overall, with the Russell 2000 Growth Index (up 18.66%) outperforming the Russell 2000 Value Index (up 14.63%) for the year. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Carillon Eagle Small Cap Growth Fund featured stocks such as Confluent, Inc. (NASDAQ:CFLT) in its Q4 2023 investor letter. Headquartered in Mountain View, California, Confluent, Inc. (NASDAQ:CFLT) offers a data streaming platform. On February 9, 2024, Confluent, Inc. (NASDAQ:CFLT) stock closed at $31.72 per share. One-month return of Confluent, Inc. (NASDAQ:CFLT) was 42.18%, and its shares gained 25.87% of their value over the last 52 weeks. Confluent, Inc. (NASDAQ:CFLT) has a market capitalization of $9.766 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding Confluent, Inc. (NASDAQ:CFLT) in its fourth quarter 2023 investor letter:

“Confluent, Inc. (NASDAQ:CFLT) is a data streaming technology provider. The company reported a disappointing quarter with too many red flags to retain our support. Confluent implemented a management change with a new CFO, drastically lowered forward revenue guidance, lost two significant customers, delayed a new product launch, and switched to a business model in which customers are only charged for the data that they use, instead of for a pre-contracted amount. We expect that the new business model is likely to result in an inferior profitability profile during the company’s transition period, and we have sold the stock.”

A data engineer focusing intently on a glowing computer screen, with lines of code streaming down the screen.

Confluent, Inc. (NASDAQ:CFLT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Confluent, Inc. (NASDAQ:CFLT) at the end of third quarter which was 36 in the previous quarter.

We discussed Confluent, Inc. (NASDAQ:CFLT) in another article and shared Madison Investments’ views on the company. In addition, please check out our hedge fund investor letters Q4 2023 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.