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Exponent (EXPO) Fell on Deceleration in Consumer Electronics Business

Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Conestoga Small Cap Composite returned 3.69% in the first quarter compared to 7.58% for the Russell 2000 Growth Index. The market continued to rise in the first quarter as many major asset classes delivered positive returns. Lack of holdings in Super Micro Computer Inc. (SMCI) and MicroStrategy Inc. (MSTR), the largest names in the benchmark, was the major reason for the underperformance of the portfolio relative to the index. In addition, stock selection in the technology sector, especially within the software industry proved challenging. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.

Conestoga Capital Advisors Small Cap Strategy highlighted stocks like Exponent, Inc. (NASDAQ:EXPO), in the first quarter 2024 investor letter. Exponent, Inc. (NASDAQ:EXPO), with a market capitalization of $4.903 billion, is a science and engineering consulting company. One-month return of Exponent, Inc. (NASDAQ:EXPO) was 20.42%, and its shares gained 7.32% of their value over the last 52 weeks. On May 20, 2024, Exponent, Inc. (NASDAQ:EXPO) stock closed at $96.77 per share.

Conestoga Capital Advisors Small Cap Strategy stated the following regarding Exponent, Inc. (NASDAQ:EXPO) in its first quarter 2024 investor letter:

“Exponent, Inc. (NASDAQ:EXPO): EXPO is a scientific and engineering consulting firm that specializes in highly technical analysis across more than 90 scientific disciplines. During the second half of 2023, EXPO witnessed a greater-than-expected deceleration in their consumer electronics business, which peaked at 22% of revenue in 2022 and now represents 14% of revenue. Excluding consumer electronics, EXPO grew in line with expectations for 2023 and they expect the segment to normalize during 2024.”

A chemical engineer studying a lab sample of a food product for safety regulations.

Exponent, Inc.’s (NASDAQ:EXPO) trailing 12 months revenue is $505.69 million. As per recent earnings call, total revenues of Exponent, Inc. (NASDAQ:EXPO) in the first quarter increased 3.3% year over year.

Exponent, Inc. (NASDAQ:EXPO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Exponent, Inc. (NASDAQ:EXPO) at the end of the fourth quarter which was 19 in the previous quarter.

Conestoga Capital Advisors commented on Exponent, Inc. (NASDAQ:EXPO) in the second quarter 2023 investor letter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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