Q2 Holdings (QTWO) Fell due to Profit Taking and a Weak Equity Market

1 month ago 11

Soumya Eswaran

Tue, Apr 29, 2025, 6:55 AM 3 min read

Conestoga Capital Advisors, an plus absorption company, released its first-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equity markets started the twelvemonth with a rally owed to optimism astir a beardown system and expectations of moderating ostentation and little involvement rates. However, concerns implicit slowing net from large Technology companies, geopolitical tensions, and an upcoming announcement connected tariffs led to a crisp diminution successful equities by the extremity of the archetypal quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) successful the archetypal 4th compared to the Russell 2000 Growth Index’s -11.12% return. The Conestoga SMid Cap Composite returned -5.73% compared to the Russell 2500 Growth Index’s -10.80% return. The Conestoga Micro-Cap Composite returned -8.24% vs the Russell Microcap Growth Index’s instrumentality of -17.75%. Finally, the Conestoga Mid Cap Composite returned 0.96% (net), compared to the Russell Midcap Growth Index’s -7.12% return. Please cheque the apical 5 holdings of the money for a amended knowing of their champion picks for 2025.

In its first-quarter 2025 capitalist letter, Conestoga Capital Advisors highlighted stocks specified arsenic Q2 Holdings, Inc. (NYSE:QTWO). Q2 Holdings, Inc. (NYSE:QTWO) is simply a integer solutions supplier to fiscal institutions, fiscal exertion companies, FinTechs, and alternate concern companies. The one-month instrumentality of Q2 Holdings, Inc. (NYSE:QTWO) was -1.62%, and its shares gained 49.95% of their worth implicit the past 52 weeks. On April 28, 2025, Q2 Holdings, Inc. (NYSE:QTWO) banal closed astatine $78.71 per stock with a marketplace capitalization of $4.904 billion.

Conestoga Capital Advisors stated the pursuing regarding Q2 Holdings, Inc. (NYSE:QTWO) successful its Q1 2025 capitalist letter:

"Based successful Austin, TX, Q2 Holdings, Inc.'s (NYSE:QTWO) 4Q24 results were modestly up of expectations and 2025 guidance was up of Street expectations. The company’s revenues were up 13% and subscription maturation was 16% for the quarter. The company’s 4Q24 bookings were the 2nd champion successful its history. The institution has shown beardown betterment successful EBITDA and escaped currency flow. With the hard equity marketplace backdrop and the stock’s important appreciation successful 2024 (the banal was up implicit 100%), the banal was taxable to nett taking."

Among Stocks Insiders Were Selling In Q1 2025

A concern nonrecreational astatine their machine logging into the company's branded integer banking platform.

Q2 Holdings, Inc. (NYSE:QTWO) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge money portfolios held Q2 Holdings, Inc. (NYSE:QTWO) astatine the extremity of the 4th quarter, compared to 21 successful the 3rd quarter. While we admit the imaginable of Q2 Holdings, Inc. (NYSE:QTWO) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.