ACI Worldwide (ACIW) Slid on Investors’ Concerns Over Unchanged Guidance
The London Company, an investment management company, released “The London Company Small Cap Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. Following a significant downturn in the first quarter, U.S. equities saw a double-digit rise in the second quarter. The small-cap portfolio appreciated 2.7% (2.4% net) in the second quarter, lagging behind the Russell 2000 Index’s 8.5% gain. Sector allocation contributed to the relative performance, while stock selection was a headwind. Please review the fund's top 5 holdings to gain insight into their key selections for 2025.
In its second quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as ACI Worldwide, Inc. (NASDAQ:ACIW). ACI Worldwide, Inc. (NASDAQ:ACIW) is a software company that develops, installs, and supports a wide range of software products and solutions to facilitate digital payments. The one-month return of ACI Worldwide, Inc. (NASDAQ:ACIW) was -3.09%, and its shares gained 4.07% of their value over the last 52 weeks. On July 28, 2025, ACI Worldwide, Inc. (NASDAQ:ACIW) stock closed at $44.52 per share, with a market capitalization of $4.67 billion.
The London Company Small Cap Strategy stated the following regarding ACI Worldwide, Inc. (NASDAQ:ACIW) in its second quarter 2025 investor letter:
"ACI Worldwide, Inc. (NASDAQ:ACIW) – ACIW was a bottom performer due to investor disappointment over unchanged guidance, despite robust results. The company’s stable business, underpinned by a high proportion of recurring revenues and nearly a year of revenue visibility from its contracted backlog, supports our positive outlook. Sustained organic growth and insider buying by the CEO during the stock pullback reinforce confidence in ACIW’s long-term potential."
A businesswoman using a digital tablet, making a payment using the company's payment processing technology.
ACI Worldwide, Inc. (NASDAQ:ACIW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held ACI Worldwide, Inc. (NASDAQ:ACIW) at the end of the first quarter, which was 35 in the previous quarter. While we acknowledge the potential of ACI Worldwide, Inc. (NASDAQ:ACIW) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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