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Should You Hold Exact Sciences Corporation (EXAS)?

Columbia Acorn Fund, distributed by Columbia Management Investment Distributors, released its second quarter 2024 investor letter. A copy of the fund can be downloaded here. In the quarter, the fund returned -6.01%, while the benchmark, the Russell 2500 Growth Index, returned -4.22%. The second quarter brought a significant change in market sentiment. The underperformance of the holdings in the quarter was primarily driven by a disappointing earnings season. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.

Columbia Acorn Fund highlighted stocks like Exact Sciences Corporation (NASDAQ:EXAS) in the second quarter 2024 investor letter. Exact Sciences Corporation (NASDAQ:EXAS) provides cancer screening and diagnostic test products. The one-month return of Exact Sciences Corporation (NASDAQ:EXAS) was 3.58%, and its shares lost 25.54% of their value over the last 52 weeks. On September 10, 2024, Exact Sciences Corporation (NASDAQ:EXAS) stock closed at $58.38 per share with a market capitalization of $10.787 billion.

Columbia Acorn Fund stated the following regarding Exact Sciences Corporation (NASDAQ:EXAS) in its Q2 2024 investor letter:

“Exact Sciences Corporation (NASDAQ:EXAS) is a leading provider of non-invasive cancer screening and therapy selection tests, including the leading colon cancer detection product, Cologuard. The stock underperformed during the quarter following a mixed earnings report on top of fears about competition. While the competition concerns could linger, our valuation work suggests the market is undervaluing the future value creation of the company and overstating competitive risks, as we believe Exact Sciences has superior products and a distribution moat. Overall, the company is still in the early innings of penetrating a large market, which carries the potential for double-digit revenue growth and expanding margins over the foreseeable future.”

A research team in a laboratory discussing the results of a lab screening test for biomarkers.

Exact Sciences Corporation (NASDAQ:EXAS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Exact Sciences Corporation (NASDAQ:EXAS) at the end of the second quarter which was 48 in the previous quarter. In the second quarter, Exact Sciences Corporation (NASDAQ:EXAS) delivered $699 million in revenue, up 12% year-over-year. While we acknowledge the potential of Exact Sciences Corporation (NASDAQ:EXAS) 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.

In another article, we discussed Exact Sciences Corporation (NASDAQ:EXAS) and shared Baron Discovery Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.

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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