Here are the Concerns Affecting Mister Car Wash (MCW)

Brown Advisory, an investment management company, released its “Brown Advisory Small-Cap Growth Strategy” second-quarter 2025 investor letter. During the first half of the year, the Brown Advisory Small-Cap Growth Strategy delivered results consistent with its historical performance. A copy of the letter can be downloaded here. In the first quarter of 2025, the portfolio remained robust, outperforming the declines of -9.5% for the Russell 2000 Index and -11.1% for the Russell 2000 Growth Index. However, in the second quarter, unprofitable companies within the Russell 2000 Index outperformed profitable ones, reversing a previous quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Small-Cap Growth Strategy highlighted stocks such as Mister Car Wash, Inc. (NASDAQ:MCW). Mister Car Wash, Inc. (NASDAQ:MCW) is a US-based conveyorized car wash services company. The one-month return of Mister Car Wash, Inc. (NASDAQ:MCW) was -3.13%, and its shares lost 10.16% of their value over the last 52 weeks. On September 03, 2025, Mister Car Wash, Inc. (NASDAQ:MCW) stock closed at $5.57 per share, with a market capitalization of $1.823 billion.

Brown Advisory Small-Cap Growth Strategy stated the following regarding Mister Car Wash, Inc. (NASDAQ:MCW) in its second quarter 2025 investor letter:

“Mister Car Wash, Inc. (NASDAQ:MCW): Provides car wash services. Mister Car Wash, Inc. (MCW) continues to demonstrate financial progress driven by improved same-store-sales on a modestly better industry backdrop and internal initiatives. The industry remains mired by concerns regarding over-capacity in certain markets and a weakening consumer.”

Mister Car Wash, Inc. (NASDAQ:MCW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Mister Car Wash, Inc. (NASDAQ:MCW) at the end of the second quarter, which was 24 in the previous quarter. In the second quarter, Mister Car Wash, Inc.’s (NASDAQ:MCW) revenue increased 4% to $265 million. While we acknowledge the risk and potential Mister Car Wash, Inc. (NASDAQ:MCW) 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 Mister Car Wash, Inc. (NASDAQ:MCW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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.