Do You Believe in the Growth Potential of Q2 Holdings (QTWO)?

2 days ago 4

Soumya Eswaran

Fri, November 28, 2025 astatine 7:53 AM CST 3 min read

Fred Alger Management, an concern absorption company, released its “Alger Small Cap Focus Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. U.S. equity markets continued their upward trajectory successful the 3rd 4th with the S&P 500 Index rising 8.12%. A operation of improving economical conditions, coagulated firm earnings, and increasing expectations for monetary easing propelled the robust equity market. Against this backdrop, the people A shares of the money underperformed the Russell 2000 Growth Index. In addition, you tin cheque the fund’s apical 5 holdings to find its champion picks for 2025.

In its third-quarter 2025 capitalist letter, Alger Small Cap Focus Fund highlighted stocks specified arsenic Q2 Holdings, Inc. (NYSE:QTWO). Q2 Holdings, Inc. (NYSE:QTWO) is simply a integer solutions supplier to fiscal institutions, fiscal exertion companies, FinTechs, and alternate concern companies. The one-month instrumentality of Q2 Holdings, Inc. (NYSE:QTWO) was 17.90%, and its shares mislaid 31.35% of their worth implicit the past 52 weeks. On November 27, 2025, Q2 Holdings, Inc. (NYSE:QTWO) banal closed astatine $71.73 per share, with a marketplace capitalization of $4.485 billion.

Alger Small Cap Focus Fund stated the pursuing regarding Q2 Holdings, Inc. (NYSE:QTWO) successful its 3rd 4th 2025 capitalist letter:

"Q2 Holdings, Inc. (NYSE:QTWO) provides secure, cloud-based integer banking bundle to determination and assemblage fiscal institutions, offering retail and commercialized integer banking, lending, and related solutions delivered arsenic subscriptions. During the quarter, the institution reported coagulated second-quarter results and raised its full-year outlook. However, shares detracted from show arsenic investors focused connected respective mixed signals: absorption noted higher-than-typical churn, a flimsy sequential dip successful gross borderline related to cloud-migration costs, and muted maturation successful discretionary services, each of which tempered enthusiasm astir the different beardown subscription momentum and guidance raise. Further, we judge the banal experienced a valuation reset amid mixed sell-side signals and elevated header valuation metrics, which added unit precocious successful the quarter. In our view, Q2’s semipermanent fundamentals stay intact, arsenic the institution is good positioned to payment from the continued digitization of banking and expanding relationships with larger institutions."

Among Stocks Insiders Were Selling In Q1 2025

Q2 Holdings, Inc. (NYSE:QTWO) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge money portfolios held Q2 Holdings, Inc. (NYSE:QTWO) astatine the extremity of the 3rd quarter, which was 29 successful the erstwhile quarter. While we admit the imaginable of Q2 Holdings, Inc. (NYSE:QTWO) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.