Latest news with #DEShaw
Yahoo
26-05-2025
- Business
- Yahoo
CoStar's Hedge Fund Investors Signal Urge 'Meaningful Self-Help' To Get Homes.com Back On Course
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Costar's (NASDAQ:CSGP) residential real estate listing site, embarked on a billion-dollar spending spree in 2024 to try to take the mantle from established marketplace leaders like Zillow (NASDAQ:Z) and However, earlier this year, the first signs of trouble emerged amid news of layoffs. Now, just over a year since the site began earning revenue, two of its hedge fund investors, D.E. Shaw & Co. and Third Point Investors Ltd., have signaled for change. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – 'Despite the continued strength of its core business, we believe recent capital allocation decisions have derailed CoStar's compounding algorithm,' a recent investor letter from Third Point said. 'Over the past five years, management has increasingly focused on leveraging CoStar's dominance in commercial real estate to expand into residential real estate.' After spending over $1 billion per year with an estimated $3 billion to be spent by the end of 2025, Third Point says so far there is little to show in the way of return. 'This investment has yet to generate meaningful revenue,' the letter states. 'Expanding losses at have obscured rapid growth in the core business and reduced consolidated EBITDA by approximately 80%.' Third Star lays bare the financial realities for the listings site following an extravagant launch, saying that after two decades of compounding at an internal rate of return of roughly 25%, CoStar's stock has remained flat in the last five years. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'After several years of uncertainty, we believe it is time for CoStar to begin the journey of meaningful self-help,' the letter states. The self-help plan includes a board shake-up and a capital allocation committee. The committee will include Costar CEO Andy Florence. The team will be tasked with overseeing the investment and profitability timeline. In February, made headlines when it announced 100 layoffs from its headquarters in Richmond, Virginia, blaming AI for some of the cuts. 'The company expects to eliminate roles in 2025 from efficiencies gained by using AI and reallocate those resources into other areas,' CoStar said in statement. 'CoStar Group sees rapidly growing value in leveraging artificial intelligence to improve content creation, drive operational efficiencies, and build the next generation of digital real estate user interfaces.'In July, CoStar Group was forced to discontinue some of its TV ads after two Fast-Track SWIFT challenges were brought by Move Inc., and BBB National Programs' National Advertising. Move Inc. operates Move, a direct rival to is owned by News Corp (NASDAQ:NWS, NWSA)). In the BBB National Programs National Advertising complaint, Move disputed two claims that CoStar had made in its advertising: ' just reached 156M monthly unique visitors.' ' now has DOUBLE traffic.' Currently, there is a dispute about page views. The CoStar claimed to average 104 million monthly unique visitors in Q1 2025, placing it ahead of Redfin (NASDAQ:RDFN) and However, analytical software company SEMRUSH puts behind Zillow, and Redfin (NASDAQ:RDFN). Read Next: , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Send To MSN: 0 This article CoStar's Hedge Fund Investors Signal Urge 'Meaningful Self-Help' To Get Back On Course originally appeared on
Yahoo
10-05-2025
- Business
- Yahoo
Moderna, Inc. (MRNA): Among Billionaire David E. Shaw's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Moderna, Inc. (NASDAQ:MRNA) stands against billionaire David E. Shaw's other small-cap stock picks with huge upside potential. David E. Shaw is one billionaire investor whose record speaks for itself on Wall Street. Having founded D.E. Shaw & Co., L.P. in 1988 with $28 million in capital, the fund has grown to become one of the most successful and biggest, with a 13F portfolio worth $136.27 billion. Amid the growth, Shaw's hedge fund D E Shaw has also returned significant returns to shareholders. The fund's flagship Composite fund has achieved an annualized net return of 12.7% since inception in 2001, as the Oculus Fund has averaged 13.7% annually since 2004 and has never had a negative year. Shaw's hedge fund was one of the earliest to leverage complex trading algorithms, followed by some form of human-run investing. Consequently, the multi-strategy fund remains the rage on Wall Street, given its solid returns over the years and the growing trend of returning gains to investors. READ ALSO: Billionaire Paul Tudor Jones' 10 Stocks Picks with Huge Upside Potential and Billionaire Quants' Two Sigma's 10 Stock Picks with Huge Upside Potential. Composite hedge fund gained 18% in 2024, with Oculus outperforming the overall market, soaring 36% and recording its best gain since inception. The better-than-expected returns come on Shaw and the other fund managers deploying systematic and computer-driven trading strategies to identify stocks trading at discounted valuations before they explode. Following the impressive performance in 2024, reports emerged that the hedge fund was planning to return billions of dollars to external clients, as has been the trend. Amid the impressive performance last year, D.E. Shaw & Co. finds itself at a crossroads as the overall stock market has turned bearish. Major US indices have pulled back by about 6% from record highs amid recession concerns and deteriorating macroeconomics attributed to the US trade war. The US Federal Reserve holding interest rates unchanged, waiting to see the impact of President Donald Trump's trade policy, continues to rattle sentiments in the equity market. The Federal Reserve held its benchmark rate unchanged at between 4.25% and 4.5%, much to the anguish of Trump. In its statement, the Fed noted the uncertainty around the economic outlook. 'Uncertainty about the economic outlook has increased further,' the statement said. 'The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have raised.' Acknowledging that tariffs could worsen inflation and hinder economic expansion, the statement introduces the likelihood of a stagflation scenario, a phenomenon that has been largely missing from the US economy since the early 1980s. Decision-makers have mostly concurred that the central bank is currently well-placed, as the economy is performing reasonably well at this time, to exercise patience while fine-tuning monetary policy. Amid the economic uncertainty, focus in the equity markets is slowly shifting towards small-cap stocks with significant upside potential. That's partly because large-cap stocks are under pressure after skyrocketing to record highs, resulting in valuations above historical norms. Billionaire David E. Shaw's portfolio boasts of solid small-cap stocks with tremendous upside potential. We combed D. E. Shaw's SEC Q4 2024 13F filings to identify Billionaire David E. Shaw's 10 Small-Cap Stock Picks with Huge Upside Potential. We then settled on stocks with less than $10 billion in market cap and analyzed why the stocks stand out, as solid investments well poised to generate significant long-term value. Finally, we ranked the stocks in ascending order based on the stocks upside potential. 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 (). A scientist surrounded by vials and beakers in a modern laboratory, proudly displaying a vaccine. Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company that provides messenger RNA medicines. The company's respiratory vaccines include Spikevax, mRESVIA, COVID-19, RSV, seasonal influenza, combination, and pandemic influenza. It's also known for treatment across infectious diseases, oncology, and rare diseases. Shares of the Massachusetts company have declined significantly over the past year, attributed to the company facing setbacks on its pipeline. The US Federal Drug Administration is requesting Phase 3 flu efficacy data for its COVID-19 and FLU combo vaccine. Moderna, Inc. (NASDAQ:MRNA) won't be able to release the mRNA vaccine as expected in 2025. Nevertheless, a recent study has shown that combining the company's flu and COVID-19 vaccine using messenger RNA generated antibodies and a stronger immune response. The combo shot can improve vaccination rates, which would be a significant boon for the company. In addition, Moderna, Inc. (NASDAQ:MRNA) is angling for the approval of the mRNA technology that is currently only used in approved COVID-19 and RSV shots. Approval of the technology should end up speeding up the production of flu shots compared to traditional shots. The push comes as UBS maintains a Buy rating of the stock, even after cutting the price target to $70 from $78. Overall, MRNA ranks 1st on our list of billionaire David E. Shaw's small-cap stock picks with huge upside potential. While we acknowledge the potential of MRNA 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MRNA but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
10-05-2025
- Business
- Yahoo
AST SpaceMobile, Inc. (ASTS): Among Billionaire David E. Shaw's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where AST SpaceMobile, Inc. (NASDAQ:ASTS) stands against billionaire David E. Shaw's other small-cap stock picks with huge upside potential. David E. Shaw is one billionaire investor whose record speaks for itself on Wall Street. Having founded D.E. Shaw & Co., L.P. in 1988 with $28 million in capital, the fund has grown to become one of the most successful and biggest, with a 13F portfolio worth $136.27 billion. Amid the growth, Shaw's hedge fund D E Shaw has also returned significant returns to shareholders. The fund's flagship Composite fund has achieved an annualized net return of 12.7% since inception in 2001, as the Oculus Fund has averaged 13.7% annually since 2004 and has never had a negative year. Shaw's hedge fund was one of the earliest to leverage complex trading algorithms, followed by some form of human-run investing. Consequently, the multi-strategy fund remains the rage on Wall Street, given its solid returns over the years and the growing trend of returning gains to investors. READ ALSO: Billionaire Paul Tudor Jones' 10 Stocks Picks with Huge Upside Potential and Billionaire Quants' Two Sigma's 10 Stock Picks with Huge Upside Potential. Composite hedge fund gained 18% in 2024, with Oculus outperforming the overall market, soaring 36% and recording its best gain since inception. The better-than-expected returns come on Shaw and the other fund managers deploying systematic and computer-driven trading strategies to identify stocks trading at discounted valuations before they explode. Following the impressive performance in 2024, reports emerged that the hedge fund was planning to return billions of dollars to external clients, as has been the trend. Amid the impressive performance last year, D.E. Shaw & Co. finds itself at a crossroads as the overall stock market has turned bearish. Major US indices have pulled back by about 6% from record highs amid recession concerns and deteriorating macroeconomics attributed to the US trade war. The US Federal Reserve holding interest rates unchanged, waiting to see the impact of President Donald Trump's trade policy, continues to rattle sentiments in the equity market. The Federal Reserve held its benchmark rate unchanged at between 4.25% and 4.5%, much to the anguish of Trump. In its statement, the Fed noted the uncertainty around the economic outlook. 'Uncertainty about the economic outlook has increased further,' the statement said. 'The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have raised.' Acknowledging that tariffs could worsen inflation and hinder economic expansion, the statement introduces the likelihood of a stagflation scenario, a phenomenon that has been largely missing from the US economy since the early 1980s. Decision-makers have mostly concurred that the central bank is currently well-placed, as the economy is performing reasonably well at this time, to exercise patience while fine-tuning monetary policy. Amid the economic uncertainty, focus in the equity markets is slowly shifting towards small-cap stocks with significant upside potential. That's partly because large-cap stocks are under pressure after skyrocketing to record highs, resulting in valuations above historical norms. Billionaire David E. Shaw's portfolio boasts of solid small-cap stocks with tremendous upside potential. We combed D. E. Shaw's SEC Q4 2024 13F filings to identify Billionaire David E. Shaw's 10 Small-Cap Stock Picks with Huge Upside Potential. We then settled on stocks with less than $10 billion in market cap and analyzed why the stocks stand out, as solid investments well poised to generate significant long-term value. Finally, we ranked the stocks in ascending order based on the stocks upside potential. 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 (). An aerial view of a communications satellite in orbit, beaming its signal down to Earth. AST SpaceMobile, Inc. (NASDAQ:ASTS) is a communication equipment company that designs and develops the constellation of BlueBird satellites. It provides a cellular broadband network in space accessible directly by smartphones for commercial use, other applications, and government use. The stock has outperformed the overall market, going by the 19% year-to-date gain that affirms why it is one of billionaire David E. Shaw's 10 small-cap stock picks with huge upside potential. Amid the outperformance, Oppenheimer initiated coverage of the stock with a Perform rating. The bullish rating comes amid a confirmation that AST SpaceMobile, Inc. (NASDAQ:ASTS) plans to have 243 of its BlueBird satellites in orbit by the end of 2028. It should have at least 100 satellites working in orbit by the end of next year. The push for more satellites comes as the company needs as many as 90 satellites to be a genuine global service provider in the provision of cellular broadband networks. AST SpaceMobile, Inc. (NASDAQ:ASTS) already boasts of solid Telco partners that rely on its services, including AT&T, Verizon, Rakuten, and Vodafone. Overall, ASTS ranks 2nd on our list of billionaire David E. Shaw's small-cap stock picks with huge upside potential. While we acknowledge the potential of ASTS 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ASTS but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
10-05-2025
- Business
- Yahoo
Norwegian Cruise Line Holdings Ltd. (NCLH): Among Billionaire David E. Shaw's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) stands against other billionaire David E. Shaw's small-cap stock picks with huge upside potential. David E. Shaw is one billionaire investor whose record speaks for itself on Wall Street. Having founded D.E. Shaw & Co., L.P. in 1988 with $28 million in capital, the fund has grown to become one of the most successful and biggest, with a 13F portfolio worth $136.27 billion. Amid the growth, Shaw's hedge fund D E Shaw has also returned significant returns to shareholders. The fund's flagship Composite fund has achieved an annualized net return of 12.7% since inception in 2001, as the Oculus Fund has averaged 13.7% annually since 2004 and has never had a negative year. Shaw's hedge fund was one of the earliest to leverage complex trading algorithms, followed by some form of human-run investing. Consequently, the multi-strategy fund remains the rage on Wall Street, given its solid returns over the years and the growing trend of returning gains to investors. READ ALSO: Billionaire Paul Tudor Jones' 10 Stocks Picks with Huge Upside Potential and Billionaire Quants' Two Sigma's 10 Stock Picks with Huge Upside Potential. Composite hedge fund gained 18% in 2024, with Oculus outperforming the overall market, soaring 36% and recording its best gain since inception. The better-than-expected returns come on Shaw and the other fund managers deploying systematic and computer-driven trading strategies to identify stocks trading at discounted valuations before they explode. Following the impressive performance in 2024, reports emerged that the hedge fund was planning to return billions of dollars to external clients, as has been the trend. Amid the impressive performance last year, D.E. Shaw & Co. finds itself at a crossroads as the overall stock market has turned bearish. Major US indices have pulled back by about 6% from record highs amid recession concerns and deteriorating macroeconomics attributed to the US trade war. The US Federal Reserve holding interest rates unchanged, waiting to see the impact of President Donald Trump's trade policy, continues to rattle sentiments in the equity market. The Federal Reserve held its benchmark rate unchanged at between 4.25% and 4.5%, much to the anguish of Trump. In its statement, the Fed noted the uncertainty around the economic outlook. 'Uncertainty about the economic outlook has increased further,' the statement said. 'The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have raised.' Acknowledging that tariffs could worsen inflation and hinder economic expansion, the statement introduces the likelihood of a stagflation scenario, a phenomenon that has been largely missing from the US economy since the early 1980s. Decision-makers have mostly concurred that the central bank is currently well-placed, as the economy is performing reasonably well at this time, to exercise patience while fine-tuning monetary policy. Amid the economic uncertainty, focus in the equity markets is slowly shifting towards small-cap stocks with significant upside potential. That's partly because large-cap stocks are under pressure after skyrocketing to record highs, resulting in valuations above historical norms. Billionaire David E. Shaw's portfolio boasts of solid small-cap stocks with tremendous upside potential. We combed D. E. Shaw's SEC Q4 2024 13F filings to identify Billionaire David E. Shaw's 10 Small-Cap Stock Picks with Huge Upside Potential. We then settled on stocks with less than $10 billion in market cap and analyzed why the stocks stand out, as solid investments well poised to generate significant long-term value. Finally, we ranked the stocks in ascending order based on the stocks upside potential. 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 (). A luxurious cruise ship overlooking a stunning horizon, highlighting the variety of its itineraries. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a cruise company that operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. Its brands provide accommodations, multiple dining venues, bars and lounges, a spa, a casino, retail shopping areas, and entertainment choices. While the stock is down by about 35% year to date due to weakening cruise demand, it is still one of billionaire David E. Shaw's 10 small-cap stock picks with tremendous upside potential. Despite the lower demand, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is not planning to offer discounts to attract more ticket sales for its cruises. Instead, it prioritizes strong pricing in anticipation of normalizing demand. Additionally, it is accelerating cost-saving initiatives to maintain profitability. It has already identified about $300 million in potential efficiencies. The Miami-based operator delivered disappointing first-quarter 2025 results as revenues fell 3% year over year on softening demand to $2.13 billion compared to $2.15 billion a year ago. Adjusted earnings per share came in at $0.07, missing estimates of $0.09. Nevertheless, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) maintained its outlook for 2025, anticipating adjusted EPS of $2.05, increasing about 13% year-over-year. However, on May 1, BofA Securities cut Norwegian Cruise Line Holdings Ltd.'s (NYSE:NCLH) price target from $23.00 to $20.00, keeping a Neutral rating due to declining future bookings, economic uncertainty, and weaker travel demand. Overall, NCLH ranks 6th on our list of billionaire David E. Shaw's small-cap stock picks with huge upside potential. While we acknowledge the potential of NCLH 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NCLH but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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Yahoo
10-05-2025
- Business
- Yahoo
Credo Technology Group Holding Ltd (CRDO): Among Billionaire David E. Shaw's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Credo Technology Group Holding Ltd (NASDAQ:CRDO) stands against billionaire David E. Shaw's other small-cap stock picks with huge upside potential. David E. Shaw is one billionaire investor whose record speaks for itself on Wall Street. Having founded D.E. Shaw & Co., L.P. in 1988 with $28 million in capital, the fund has grown to become one of the most successful and biggest, with a 13F portfolio worth $136.27 billion. Amid the growth, Shaw's hedge fund D E Shaw has also returned significant returns to shareholders. The fund's flagship Composite fund has achieved an annualized net return of 12.7% since inception in 2001, as the Oculus Fund has averaged 13.7% annually since 2004 and has never had a negative year. Shaw's hedge fund was one of the earliest to leverage complex trading algorithms, followed by some form of human-run investing. Consequently, the multi-strategy fund remains the rage on Wall Street, given its solid returns over the years and the growing trend of returning gains to investors. READ ALSO: Billionaire Paul Tudor Jones' 10 Stocks Picks with Huge Upside Potential and Billionaire Quants' Two Sigma's 10 Stock Picks with Huge Upside Potential. Composite hedge fund gained 18% in 2024, with Oculus outperforming the overall market, soaring 36% and recording its best gain since inception. The better-than-expected returns come on Shaw and the other fund managers deploying systematic and computer-driven trading strategies to identify stocks trading at discounted valuations before they explode. Following the impressive performance in 2024, reports emerged that the hedge fund was planning to return billions of dollars to external clients, as has been the trend. Amid the impressive performance last year, D.E. Shaw & Co. finds itself at a crossroads as the overall stock market has turned bearish. Major US indices have pulled back by about 6% from record highs amid recession concerns and deteriorating macroeconomics attributed to the US trade war. The US Federal Reserve holding interest rates unchanged, waiting to see the impact of President Donald Trump's trade policy, continues to rattle sentiments in the equity market. The Federal Reserve held its benchmark rate unchanged at between 4.25% and 4.5%, much to the anguish of Trump. In its statement, the Fed noted the uncertainty around the economic outlook. 'Uncertainty about the economic outlook has increased further,' the statement said. 'The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have raised.' Acknowledging that tariffs could worsen inflation and hinder economic expansion, the statement introduces the likelihood of a stagflation scenario, a phenomenon that has been largely missing from the US economy since the early 1980s. Decision-makers have mostly concurred that the central bank is currently well-placed, as the economy is performing reasonably well at this time, to exercise patience while fine-tuning monetary policy. Amid the economic uncertainty, focus in the equity markets is slowly shifting towards small-cap stocks with significant upside potential. That's partly because large-cap stocks are under pressure after skyrocketing to record highs, resulting in valuations above historical norms. Billionaire David E. Shaw's portfolio boasts of solid small-cap stocks with tremendous upside potential. We combed D. E. Shaw's SEC Q4 2024 13F filings to identify Billionaire David E. Shaw's 10 Small-Cap Stock Picks with Huge Upside Potential. We then settled on stocks with less than $10 billion in market cap and analyzed why the stocks stand out, as solid investments well poised to generate significant long-term value. Finally, we ranked the stocks in ascending order based on the stocks upside potential. 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 (). An engineer in a cleanroom testing and tweaking an integrated circuit. Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a technology company that provides high-speed connectivity solutions for optical and electrical Ethernet applications. Its products include HiWire active electrical cables, optical digital signal processors, and SerDes IP. The company is increasingly capitalizing on the growing demand for its solutions in the data infrastructure market, affirming why it is one of billionaire David E. Shaw's 10 small-cap stock picks with tremendous upside potential. Companies around the world are making significant investments in data centers to facilitate cloud computing and artificial intelligence. Consequently, global data center capital expenditures increased by almost 50% to about $455 billion in 2024 alone. As a result, Credo Technology Group Holding Ltd's (NASDAQ:CRDO) products, especially its Active Electrical Cables (AECs), are in high demand due to the continuous expansion of AI infrastructure. As businesses assemble enormous clusters of AI servers, they need a ton of bandwidth to transfer data effectively. The AECs from Credo Technology Group Holding Ltd (NASDAQ:CRDO) are made explicitly for that use. Credo Technology delivered robust third-quarter FY2025 financial results, surpassing market expectations. Revenue rose 154% year over year to $135 million as earnings per share came in at $0.25 against $0.18 expected. Overall, CRDO ranks 8th on our list of billionaire David E. Shaw's small-cap stock picks with huge upside potential. While we acknowledge the potential of CRDO 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CRDO but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
