Sands Capital, an investment management company, released its “Sands Capital Technology Innovators Fund” Q4 2024 investor letter. A copy of the same can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned 5.5% (net) in the fourth quarter compared to 4.4% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. The fund returned 37.7% over the one year period compared to 31.6 % return for the Index. You can check the fund’s top 5 holdings to know more about its best picks for 2024.
In its fourth quarter 2024 investor letter, Sands Capital Select Technology Innovators Fund emphasized stocks such as Monday.com Ltd. (NASDAQ:MNDY). Monday.com Ltd. (NASDAQ:MNDY) develops software applications and work management tools. The one-month return Monday.com Ltd. (NASDAQ:MNDY) was -6.43%, and its shares gained 21.72% of their value over the last 52 weeks. On April 1, 2025, Monday.com Ltd. (NASDAQ:MNDY) stock closed at $262.18 per share with a market capitalization of $13.312 billion.
Sands Capital Technology Innovators Fund stated the following regarding Monday.com Ltd. (NASDAQ:MNDY) in its Q4 2024 investor letter:
“Monday.com Ltd. (NASDAQ:MNDY) shares declined following the release of its third-quarter business results. Weakness in shares of the business can be attributed to momentum from a strong second quarter that did not carry through into the third quarter.
The business continues to display healthy top-line growth of over 30 percent. However, revenue beat expectations by a narrower margin than in the second quarter, despite a tailwind from recent price increases. Additionally, guidance was lowered when accounting for the contribution of the recent price increases. Following the results, management also commented that it has been seeing some incremental weakness in Europe, given the weaker macroeconomic environment in key geographies, such as France and Germany, which put further pressure on shares.
We view recent results as within the range of expected outcomes and see several underappreciated tailwinds heading into 2025. We expect the business to sustain growth near 30 percent in 2025, supported by sustained momentum in its core business, continued success from new product launches, and a persistent tailwind from recent price increases. Longer term, we see additional upside potential from Monday’s artificial intelligence-enabled tools, which are not monetized today but may be upsold as add-ons or higher-priced tiers as they prove their value. We think the business’ valuation is attractive at current levels, given our view of sustained above-average growth over the next several years…” (Click here to read the full text)
Software engineers collaborating on a project while seated in a shared workspace.
Monday.com Ltd. (NASDAQ:MNDY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Monday.com Ltd. (NASDAQ:MNDY) at the end of the fourth quarter compared to 49 in the third quarter. While we acknowledge the potential of Monday.com Ltd. (NASDAQ:MNDY) 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.
We covered Monday.com Ltd. (NASDAQ:MNDY) in another article, where we shared the list of AI stocks on investors’ radar. Artisan Mid Cap Fund ended its investment campaigns in Monday.com Ltd. (NASDAQ:MNDY) during Q4 2024. In addition, please check out our hedge fund investor letters Q4 2024 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.