Klaviyo (KVYO) Slid Despite Strong Earnings
Sands Capital, an investment management company, released its 'Sands Capital Technology Innovators Fund' Q1 2025 investor letter. A copy of the letter 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 -10.4% (net) in the first quarter compared to a 9.4% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. The choice of securities in the software sector was the primary factor negatively impacting relative performance. You can check the fund's top 5 holdings to know more about its best picks for 2025.
In its first-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as Klaviyo, Inc. (NYSE:KVYO). Headquartered in Boston, Massachusetts, Klaviyo, Inc. (NYSE:KVYO) is a technology company. The one-month return of Klaviyo, Inc. (NYSE:KVYO) was 6.72%, and its shares have appreciated by 48.04% over the past 52 weeks. On May 28, 2025, Klaviyo, Inc. (NYSE:KVYO) closed at $33.65 per share, with a market capitalization of $10.008 billion.
Sands Capital Technology Innovators Fund stated the following regarding Klaviyo, Inc. (NYSE:KVYO) in its Q1 2025 investor letter:
"Klaviyo, Inc. (NYSE:KVYO) is an innovative provider of business-to-consumer (B2C) marketing technology. The business reported a strong 2024 fourth quarter result, with key metrics exceeding both consensus and our expectations. While shares declined—due to high pre-earnings expectations, a slightly softer guide, and the broader tech selloff—we view the business as executing well. Management continues to improve communication and operational delivery, with strong momentum across upmarket adoption, international expansion, and product innovation. The standout announcement was the launch of a full CRM platform that integrates marketing, customer service, and analytics. This shift positions Klaviyo as a true platform business for B2C brands, in our view, and expands its AI opportunity."
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Klaviyo, Inc. (NYSE:KVYO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Klaviyo, Inc. (NYSE:KVYO) at the end of the first quarter, which was 30 in the previous quarter. Klaviyo, Inc. (NYSE:KVYO) reported Q1 revenue of $280 million, representing 33% year-over-year growth. While we acknowledge the potential of Klaviyo, Inc. (NYSE:KVYO) 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 undervalued AI stock set for massive gains.
In another article, we covered Klaviyo, Inc. (NYSE:KVYO) and shared the list of most promising new technology stocks according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 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.
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