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Manhattan Associates (MANH) Jumped on Strong Financial Result

Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The Mid Company Fund (Institutional shares) returned 5.21% in the quarter underperforming the 9.50% return for the Russell Midcap Growth Index. The strategy focuses on companies that offer mission-critical products and services that save time, lives, money, and headaches. In addition, check the fund’s top five holdings to know its best picks in 2024.

The Brown Capital Management Mid Company Fund highlighted stocks like Manhattan Associates, Inc. (NASDAQ:MANH), in the first quarter 2024 investor letter. Manhattan Associates, Inc. (NASDAQ:MANH) provides software solutions to manage supply chains, inventory, and omnichannel operations The one-month return of Manhattan Associates, Inc. (NASDAQ:MANH) was 7.71% and its shares gained 28.13% of their value over the last 52 weeks. On June 24, 2024, Manhattan Associates, Inc. (NASDAQ:MANH) stock closed at $241.48 per share with a market capitalization of $14.979 billion.

The Brown Capital Management Mid Company Fund stated the following regarding Manhattan Associates, Inc. (NASDAQ:MANH) in its first quarter 2024 investor letter:

“Manhattan Associates, Inc. (NASDAQ:MANH) provides supply-chain execution software for warehouse management, transportation management, inventory, planning and scheduling, as well as integrated logistics. The company’s mission-critical tools play a pivotal role in allowing its customers to deliver a seamless shopping experience across physical stores, online platforms and mobile devices, ensuring rapid delivery and hassle-free returns, which are crucial to their operations. In 2017, Manhattan began a multiyear investment to update its platform for the cloud, and management’s execution has been excellent. The company’s cloud offering provides superior access to innovation, with updates every 90 days instead of every five years with on-premise software. One of the company’s newer solutions, Point of Sale (POS), is further expanding the company’s growth opportunity into store management with a single platform that provides all in-store selling and fulfillment tools.

During the quarter, Manhattan’s strong share price performance was driven by impressive fourth quarter financial results that benefited from a healthy demand environment and continued solid cloud deployments. Revenue increased 20% year over year with cloud-subscription growth even stronger at 38%. GAAP operating margins reached 25%, which represented an expansion of 200 basis points year over year and meaningfully exceeded consensus expectations. In addition, the company’s remaining performance obligation (RPO), a leading indicator of future revenue growth similar to backlog, increased 36% year over year. Management also issued strong 2024 guidance for revenue, margins and earnings per share. The company’s POS initiative, which could double the size of the company’s total addressable market, is seeing early success, with 22 customers already signed up. Due to the company’s differentiated value proposition for customers, strong execution and pipeline of new products, we expect Manhattan to grow revenue and profitability for many years into the future.”

A woman and man in formal attire in a meeting room discussing the latest enterprise solutions technology from the company.

Manhattan Associates, Inc. (NASDAQ:MANH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Manhattan Associates, Inc. (NASDAQ:MANH) at the end of the first quarter which was 32 in the previous quarter. While we acknowledge the potential of Manhattan Associates, Inc. (NASDAQ:MANH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We discussed Manhattan Associates, Inc. (NASDAQ:MANH) in another article and shared the list of biggest supply chain companies to know. Manhattan Associates, Inc. (NASDAQ: MANH) was one of the top contributors to the Brown Capital Management Mid Company Fund in the previous quarter as well. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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