Should You Consider Increasing Your Holdings in Matterport (MTTR)?

Middle Coast Investing, an investment advisor firm, released its fourth-quarter investor letter. A copy of the letter can be downloaded here. It was a strong quarter for the strategy which outperformed the S&P 500 and the Russell 2000. However, in full year 2024, the strategy beat the Russell 2000, the most relevant benchmark, but trailed the S&P 500, the most important benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Middle Coast Investing highlighted stocks like Matterport, Inc. (NASDAQ:MTTR), in the fourth quarter 2024 investor letter. Matterport, Inc. (NASDAQ:MTTR) is a spatial data company that focuses on digitizing and indexing the built world. The one-month return of Matterport, Inc. (NASDAQ:MTTR) was 1.02%, and its shares gained 105.81% of their value over the last 52 weeks. On January 8, 2025, Matterport, Inc. (NASDAQ:MTTR) stock closed at $4.96 per share with a market capitalization of $1.602 billion.

Middle Coast Investing stated the following regarding Matterport, Inc. (NASDAQ:MTTR) in its Q4 2024 investor letter:

“After the election, we bought more shares in Matterport, Inc. (NASDAQ:MTTR)), a pure merger arbitrage play. I viewed it as 90% likely a Biden/Harris led administration would ok CSGP’s purchase of MTTR, and that probability improved with Trump’s win. But the deal is 50% shares of CSGP, and CSGP’s shares have gone down (and still do not represent good value in my view). We sold all of our position in mid-December, when the spread between the merger consideration and the stock price was just over 6%. Not enough to compensate for the slim chance that the deal falls apart and MTTR’s shares get cut in half.”

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Matterport, Inc. (NASDAQ:MTTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Matterport, Inc. (NASDAQ:MTTR) at the end of the third quarter which was 25 in the previous quarter. While we acknowledge the potential of Matterport, Inc. (NASDAQ:MTTR) 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 Matterport, Inc. (NASDAQ:MTTR) and shared the list of best low-priced technology stocks to buy. 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.