Roth MKM’s AI & Non-AI Stocks To Be Cautious About: 15 Stocks Bank With $60 Billion Capital Raise Is Watching

2. Tyler Technologies, Inc. (NYSE:TYL)

Number of Hedge Fund Holders In Q3 2024: 40

Tyler Technologies, Inc. (NYSE:TYL) is a software company that allows public sector entities such as schools, courts, and governments to manage their payments, billings, record management, and other process functions. Subsequently, the firm enjoys the advantage of a stable revenue during turbulent economic times. This stability is also evident in Tyler Technologies, Inc. (NYSE:TYL)’s shares which are up 47% year-to-date. The shares have particularly benefited from the fact that the firm is one of the few software-as-a-service (SaaS) providers for the public sector. This means that Tyler Technologies, Inc. (NYSE:TYL) can help introduce AI into the massive government bureaucracies. At the same time, the incoming Trump administration’s focus on reducing government costs could create headwinds for the firm.

Conestoga Capital mentioned Tyler Technologies, Inc. (NYSE:TYL) in its Q3 2024 investor letter. Here is what the fund said:

“A software services company, Tyler Technologies, Inc. (NYSE:TYL) reported quarterly results that beat expectations as their conversion to a software-as-a-service (SaaS) provider gathered momentum and boosted earnings. TYL provides software to municipalities and other public government agencies that are used across a wide range of applications. Originally purchased by Conestoga in our Small Cap Growth portfolios in 2008, we added TYL to the Mid Cap Growth portfolios in 2016. TYL was sold from the Small Cap Growth strategy as its market capitalization rose above $13 billion. Our Mid Cap Growth portfolios have continued to hold TYL, and the company’s market capitalization was near $25 billion at the end of the third quarter.”