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.”

Is ACI Worldwide Inc. (ACIW) the Most Promising Technology Stock to Buy Now?

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 risk and potential of ACI Worldwide, Inc. (NASDAQ:ACIW) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ACI Worldwide, Inc. (NASDAQ:ACIW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered ACI Worldwide, Inc. (NASDAQ:ACIW) and shared the list of Aristotle Capital Small Cap Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.