SPS Commerce (SPSC) Fell Despite Reporting Strong Results

Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their upward trajectory in the quarter, with the S&P 500 Index surging 8.12%. Class A shares of the fund underperformed the Russell 2500 Growth Index during the third quarter of 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Alger Weatherbie Specialized Growth Fund highlighted stocks such as SPS Commerce, Inc. (NASDAQ:SPSC). Headquartered in Minneapolis, Minnesota, SPS Commerce, Inc. (NASDAQ:SPSC) offers cloud-based supply chain management solutions. The one-month return of SPS Commerce, Inc. (NASDAQ:SPSC) was 5.62%, and its shares lost 36.35% of their value over the last 52 weeks. On October 28, 2025, SPS Commerce, Inc. (NASDAQ:SPSC) stock closed at $109.99 per share, with a market capitalization of $4.17 billion.

Alger Weatherbie Specialized Growth Fund stated the following regarding SPS Commerce, Inc. (NASDAQ:SPSC) in its third quarter 2025 investor letter:

“SPS Commerce, Inc. (NASDAQ:SPSC) provides cloud-based tools that help retailers, suppliers, and logistics partners share product information, manage orders and inventory, and track sales across channels. During the quarter, the company delivered strong fiscal second quarter results, raised its full-year outlook, and announced a share repurchase program. However, shares detracted from performance after management lowered their medium term organic revenue growth rate, citing more cautious customer spending and longer decision cycles amid macroeconomic uncertainty.”

Is SPS Commerce Inc. (SPSC) The Best 52-Week Low Stock To Buy Now According to Short Sellers?

SPS Commerce, Inc. (NASDAQ:SPSC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 34 hedge fund portfolios held SPS Commerce, Inc. (NASDAQ:SPSC) at the end of the second quarter, up from 31 in the previous quarter.  SPS Commerce, Inc.’s (NASDAQ:SPSC) revenue grew 22% in the second quarter of 2025 to $187.4 million. While we acknowledge the risk and potential of SPS Commerce, Inc. (NASDAQ:SPSC) 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 SPS Commerce, Inc. (NASDAQ:SPSC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered SPS Commerce, Inc. (NASDAQ:SPSC) and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q3 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.