Weave Communications (WEAV) Fell on Conservative 2025 Guidance

Wasatch Global Investors, an asset management company, released its “Wasatch Micro-Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund was down -16.57% in the quarter, outperforming the benchmark Russell Microcap® Growth Index’s -17.75% return. U.S. equities fell in Q1, driven by tariffs, budget cuts, economic weakness, stagflation concerns, and AI-related companies, affecting micro-cap companies. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Wasatch Micro-Cap Fund highlighted stocks such as Weave Communications, Inc. (NYSE:WEAV). Weave Communications, Inc. (NYSE:WEAV) offers a customer experience and payments software platform that enables small and medium-sized healthcare businesses to maximize the value of their patient interactions. The one-month return of Weave Communications, Inc. (NYSE:WEAV) was -6.70%, and its shares gained 12.13% of their value over the last 52 weeks. On May 27, 2025, Weave Communications, Inc. (NYSE:WEAV) stock closed at $9.89 per share with a market capitalization of $743.55 million.

Wasatch Micro-Cap Fund stated the following regarding Weave Communications, Inc. (NYSE:WEAV) in its Q1 2025 investor letter:

“Weave Communications, Inc. (NYSE:WEAV) was a top detractor from Fund performance during the quarter. While investors reacted negatively to what we consider to be conservative guidance for 2025, we continue to have conviction in Weave’s long-term growth potential. Weave offers an engagement software solution for dental offices and is expanding beyond its core clients to serve other medical practices and small businesses. It is also expanding vertically via Weave Payments, which helps improve customers’ revenue cycle management.”

A close-up shot of an engineer configuring an email marketing system.

Weave Communications, Inc. (NYSE:WEAV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Weave Communications, Inc. (NYSE:WEAV) at the end of the first quarter, which was 32 in the previous quarter. In Q1 2025, Weave Communications, Inc. (NYSE:WEAV) reported revenue of $55.8 million, representing an increase of 18.3% from Q1 2024. While we acknowledge the potential of Weave Communications, Inc. (NYSE:WEAV) 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 undervalued AI stock set for massive gains.

In addition, please check out our hedge fund investor letters Q1 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.