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 Arlo Technologies, Inc. (NYSE:ARLO), in the fourth quarter 2024 investor letter. Arlo Technologies, Inc. (NYSE:ARLO) is cloud based platform provider. The one-month return of Arlo Technologies, Inc. (NYSE:ARLO) was -9.80%, and its shares gained 27.50% of their value over the last 52 weeks. On January 8, 2025, Arlo Technologies, Inc. (NYSE:ARLO) stock closed at $11.87 per share with a market capitalization of $1.191 billion.
Middle Coast Investing stated the following regarding Arlo Technologies, Inc. (NYSE:ARLO) in its Q4 2024 investor letter:
“We sold all our shares of Arlo Technologies, Inc. (NYSE:ARLO) after owning them for nearly 4 years. The latest quarter itself wasn’t terrible, but the valuation is asking a lot at this point. The company has not achieved GAAP profitability and spends a lot share-based compensation. While the company has a good balance sheet and there is reason to expect it to grow its service business, that business is slowing and I’m not seeing signs of a ‘big hit’ that would justify the price of shares. We earned an acceptable return, though given the volatility and risk level, it was probably not outperforming.”
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Arlo Technologies, Inc. (NYSE:ARLO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Arlo Technologies, Inc. (NYSE:ARLO) at the end of the third quarter which was 17 in the previous quarter. In the third quarter, Arlo Technologies, Inc. (NYSE:ARLO) delivered another strong quarter with total revenue increased 6% year-over-year to $137.7 million. While we acknowledge the potential of Arlo Technologies, Inc. (NYSE:ARLO) 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.
