We recently published a list of the 11 Best Performing Stocks So Far In 2025. In this article, we are going to take a look at where Xunlei Ltd. (NASDAQ:XNET) stands against the other best performing stocks so far in 2025.
On March 21, Jason Pride, Chief of Investment Strategy at Glenmede, and Stephen DeNichilo, Portfolio Manager at Federated Hermes, appeared on CNBC’s ‘Power Lunch’ to discuss the current market dynamics. Pride cautioned against overemphasizing the MAG7 tech stocks and noted that this market is one of the most concentrated in history, which is similar to the levels seen in 1999–2000 and the Roaring Twenties. He argued that this extreme concentration suggests that future market performance is more likely to come from areas outside these dominant stocks. Pride emphasized the importance of diversification in this environment. He advised investors to focus on the remaining stocks in the S&P 500 index beyond the MAG7. He highlighted small-cap stocks, international equities, and bonds as better opportunities for future returns. According to him, moving away from over-concentrated segments of the market is essential for achieving better long-term performance.
DeNichilo added his perspective by explaining what drives stock prices over time. He noted that for a stock to rise in value, someone must be willing to buy it at a higher price. With the MAG7 being some of the most widely owned stocks in history, he questioned who else is left to buy them. He pointed out that markets dislike uncertainty, and today’s environment is filled with it, ranging from tariffs and inflation to interest rate policies and unpredictable forecasts from big companies. This lack of clarity has created a self-imposed economic slowdown. DeNichilo shifted focus to small-cap stocks, which he described as significantly undervalued based on historical metrics. He suggested that if interest rates decline and market confidence improves over the next 6 to 12 months, small-cap stocks are likely to perform well. He argued that smaller companies often drive innovation due to their agility and ability to grow earnings faster than massive corporations like those in the MAG7.
Our Methodology
We used the Finviz stock screener to compile a list of all the best-performing stocks. We then picked the 11 stocks with the highest year-to-date gains, as of March 21. The stocks are ranked in ascending order of their year-to-date performance. We have also added the hedge fund sentiment for each stock which was sourced from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An artfully detailed shot of a computer monitor displaying a streaming video from Xunlei Media Player, demonstrating the company’s online media capabilities.
Xunlei Ltd. (NASDAQ:XNET)
Year-to-Date Performance as of March 21: 154.77%
Number of Hedge Fund Holders: 4
Xunlei Ltd. (NASDAQ:XNET) operates an internet platform for digital media content using cloud technology. Its services include download acceleration tools, mobile applications, media players, online gaming, advertising, and live streaming. It also offers cloud computing services through OneThing Cloud and StellarCloud, edge computing hardware, and blockchain infrastructure via ThunderChain.
In Q4 2024, the company’s subscription service brought in $34.4 million, which was a 9% improvement from the year before. The company now has 6.38 million subscribers, which is up from 5.99 million year-over-year. 77% of these subscribers are paying for the premium service. For the entire year of 2024, the subscription service generated $133.7 million, which showed a 12% growth.
Xunlei Ltd. (NASDAQ:XNET) is partnering with mobile phone companies to reach new users and adding new features to its service. It has also acquired Hupu, which the company expects will bring in even more users. Hupu is a sports media and data platform in China which is known for its strong online community and comprehensive coverage of sports news and discussions. Xunlei Ltd.’s (NASDAQ:XNET) total revenue for Q4 2024 was $84.3 million, which was up 9.3%. For the first quarter of 2025, the company expects total revenue to be between $85 and $89 million.
Overall, XNET ranks 1st on our list of the best performing stocks so far in 2025. While we acknowledge the growth potential of XNET, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XNET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
