Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. For the second consecutive year, U.S. equity indices ended the year with double-digit returns after generating modest returns in the fourth quarter of 2024. Conestoga’s investment plans were hindered by the enthusiasm for everything artificial intelligence (AI) related, which the firm believes led to a more speculative investing climate. The Conestoga Small Cap Composite surged 1.67% (net) in the fourth quarter compared to the Russell 2000 Growth Index’s 1.70% return. The Conestoga SMid Cap Composite returned -0.68% (net) trailing the Russell 2500 Growth Index’s 2.43% return. The Conestoga Micro Cap Composite advanced 9.91% (net) vs the Russell Microcap Growth Index’s return of 11.55%. Finally, the Conestoga Mid Cap Composite returned -4.63% (net) underperforming the Russell Midcap Growth Index’s 8.14% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
In its fourth quarter 2024 investor letter, Conestoga Capital Advisors emphasized stocks such as Planet Labs PBC (NYSE:PL). Planet Labs PBC (NYSE:PL) engages in the design construction and launch of constellations of satellites that provides high cadence geospatial data. The one-month return Planet Labs PBC (NYSE:PL) was 61.62%, and its shares gained 173.89% of their value over the last 52 weeks. On February 11, 2025, Planet Labs PBC (NYSE:PL) stock closed at $6.19 per share, with a market capitalization of $1.851 billion.
Conestoga Capital Advisors stated the following regarding Planet Labs PBC (NYSE:PL) in its Q4 2024 investor letter:
“Planet Labs PBC (NYSE:PL) is a market leader in Earth observation data with daily satellite scans of the entire Earth that are supported by over 200 satellites. While growth in their defense and intelligence market has been robust, this has been offset by weakness in their commercial customer base, notably in agriculture. PL shares have rebounded due to a reorganization that has commercial poised to grow on a more reasonable expense base, which has PL positioned to report their first quarter of positive EBITDA in the fourth quarter since going public. Artificial Intelligence is a key technology that is unlocking the true potential of PL and its vast data engine.”
An aerial view of a communications satellite in orbit, beaming its signal down to Earth.
Planet Labs PBC (NYSE:PL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held Planet Labs PBC (NYSE:PL) at the end of the third quarter which was 12 in the previous quarter. Planet Labs PBC (NYSE:PL) generated a record $61.3 in revenue in the fiscal third quarter of 2025, representing 11% year-on-year growth. While we acknowledge the potential of Planet Labs PBC (NYSE:PL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article we discussed Planet Labs PBC (NYSE:PL) and shared the list of industrial stocks those are skyrocketing so far in 2025. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.