Descartes Systems Group (DSGX) Fell After the Force Reduction News

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Small Cap Composite returned 4.76% in the quarter compared to 11.97% for the Russell 2000 Growth Index. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as The Descartes Systems Group Inc. (NASDAQ:DSGX). Headquartered in Waterloo, Canada, The Descartes Systems Group Inc. (NASDAQ:DSGX) provides cloud-based logistics and supply chain solutions. The one-month return of The Descartes Systems Group Inc. (NASDAQ:DSGX) was 4.28%, and its shares gained 6.96% of their value over the last 52 weeks. On July 24, 2025, The Descartes Systems Group Inc. (NASDAQ:DSGX) stock closed at $106.45 per share, with a market capitalization of $9.155 billion.

Conestoga Capital Advisors stated the following regarding The Descartes Systems Group Inc. (NASDAQ:DSGX) in its second quarter 2025 investor letter:

“Within Technology, The Descartes Systems Group Inc. (NASDAQ:DSGX) and Simulations Plus, Inc. (SLP) were the largest detractors from relative return. DSGX, which provides software services to assist in logistics and global shipping invoice management, fell after announcing a reduction in force as they plan for the impact of global trade uncertainty.”

Is Descartes Systems Group Inc. (DSGX) the Best Mid Cap Tech Stock to Buy Now?

A warehouse filled with packages and parcels, signifying the scale of e-commerce enablement.

The Descartes Systems Group Inc. (NASDAQ:DSGX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 22 hedge fund portfolios held The Descartes Systems Group Inc. (NASDAQ:DSGX) at the end of the first quarter compared to 22 in the previous quarter. In the first quarter of 2025, The Descartes Systems Group Inc. (NASDAQ:DSGX) reported revenues of $168.7 million, reflecting an increase of approximately 11.5% from Q1 of last year. While we acknowledge the risk and potential of The Descartes Systems Group Inc. (NASDAQ:DSGX) 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 The Descartes Systems Group Inc. (NASDAQ:DSGX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered The Descartes Systems Group Inc. (NASDAQ:DSGX) and shared Conestoga Capital Advisors’ views on the company in the previous quarter. 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.