Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Should You Hold Cellebrite (CLBT)?

Greenhaven Road Capital, an investment management company, released its first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, the Fund returned approximately 2%. In the short term, most share price fluctuations are due to changes in investor sentiment. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Greenhaven Road Capital featured stocks like Cellebrite DI Ltd. (NASDAQ:CLBT) in the first quarter 2024 investor letter. Headquartered in Petah Tikva, Israel, Cellebrite DI Ltd. (NASDAQ:CLBT) is a software company that develops solutions for legally sanctioned investigations. On May 3, 2024, Cellebrite DI Ltd. (NASDAQ:CLBT) stock closed at $10.72 per share. One-month return of Cellebrite DI Ltd. (NASDAQ:CLBT) was -3.94%, and its shares gained 96.70% of their value over the last 52 weeks. Cellebrite DI Ltd. (NASDAQ:CLBT) has a market capitalization of $2.201 billion.

Greenhaven Road Capital stated the following regarding Cellebrite DI Ltd. (NASDAQ:CLBT) in its first quarter 2024 investor letter:

“Cellebrite DI Ltd. (NASDAQ:CLBT) – Cellebrite is another technology company, making its results also not inevitable, but I do like their prospects The company says their “end-to-end platform helps investigative teams in both public and private sectors close cases faster, smarter, and more defensively than ever before.” As we have discussed in recent letters, Cellebrite benefits from two trends that seem unlikely to dissipate. The first is that digital evidence is continuing to grow in forms and complexity including text, photo, voicemail, video, geolocation, contacts, emails, Snapchats, Instagram, and crypto. The second trend is that law enforcement agencies are undermanned with technology-proficient employees such that third-party technology tools offer their most realistic path to collect, analyze, and handle the digital evidence. Investigators cannot just throw bodies at the growing mountain of digital evidence; they need tools.

Cellebrite sells tools to extract, analyze, and manage digital evidence, making their users more efficient and effective. Despite this mission-critical offering, Cellebrite typically represents less than 1/10 of 1% of their customers’ budgets. Without pulling the pricing lever and not fully benefitting from the new product cycles, the company has grown ARR like a drum beat for the last four years as it transitioned their business model from perpetual licenses to SAAS. At the recent analyst day, Cellebrite demonstrated products that radically increase investigator efficiency with improved search tools and the application of artificial intelligence. That is the first time I have used the term artificial intelligence in a letter. It sounds so promotional it makes my skin crawl, but I promise you that the tools they demonstrated can dramatically improve efficiency of investigators and should be very high ROI for the customers. A competitor’s price increase created even more room for Cellebrite to raise their own. Rational customers will pay more. Prices are going up which should fuel growth which will be further enhanced by new products.

Cellebrite has an enterprise value of less than $2B. They will likely end the year with just under $400M of annual recurring revenue and last year generated almost $100M in free cash flow. Can the multiple compress? Sure. But if we wait, we own a growing, cash flowing, below market multiple, enduring secular tailwinds company entering a new product cycle which will last years, all while operating in a limited competitive landscape and selling products their customers desperately need. This is not selling water in the desert, but the customers are certainly thirsty.”

A female engineer in a datacenter, wearing a headset, monitoring digital data.

Cellebrite DI Ltd. (NASDAQ:CLBT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Cellebrite DI Ltd. (NASDAQ:CLBT) at the end of the fourth quarter which was 23 in the previous quarter.

We previously discussed Cellebrite DI Ltd. (NASDAQ:CLBT) in another article, where we shared Greenhaven Road Capital’s views on the company. Greenhaven Road Capital maintains a positive outlook on Cellebrite DI Ltd. (NASDAQ:CLBT) due to its limited competition and high demand for its products as discussed in its Q4 2023 and current 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.

Suggested Articles:

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

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

  • The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
  • Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
  • Lifetime Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

 

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

  1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.
  2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
  3. Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…