Extreme Networks (EXTR) Fell on Lowering Full-Year Revenue Guidance
Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The fourth quarter witnessed a significant easing in financial conditions, which was most notable in the final two months. Class A shares of the fund outperformed the Russell 2000 Growth Index during the quarter. The Information Technology and Healthcare sectors contributed to the fund’s relative performance in the quarter, while financial and consumer staples detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Small Cap Growth Fund featured stocks like Extreme Networks, Inc. (NASDAQ:EXTR) in the Q4 2023 investor letter. Headquartered in Morrisville, North Carolina, Extreme Networks, Inc. (NASDAQ:EXTR) is a software-driven networking solutions provider. On February 27, 2024, Extreme Networks, Inc. (NASDAQ:EXTR) stock closed at $12.55 per share. One-month return of Extreme Networks, Inc. (NASDAQ:EXTR) was -24.58%, and its shares lost 32.96% of their value over the last 52 weeks. Extreme Networks, Inc. (NASDAQ:EXTR) has a market capitalization of $1.616 billion.
Alger Small Cap Growth Fund stated the following regarding Extreme Networks, Inc. (NASDAQ:EXTR) in its fourth quarter 2023 investor letter:
"Extreme Networks, Inc. (NASDAQ:EXTR) specializes in comprehensive, cloud-native networking solutions, combining the design and production of network infrastructure equipment with its exclusive cloud management platform and a wide range of applications. We consider their Wi-Fi and switching equipment and software to be among the top choices for enterprises, managed efficiently over the cloud. Their latest offering, universal equipment, now integrates computing, security, and Al capabilities directly at the enterprise level. This expands their Total Addressable Market (TAM) significantly. During the quarter, the company reported strong fiscal first quarter results, where revenues beat analyst estimates, resulting in margin expansion and higher than expected free cash flow generation. However, management lowered their fiscal full year revenue guidance, citing macroeconomic weakness as enterprises continue to delay network upgrades. As a result, shares detracted from performance."
A customer service person helping a client with a complex network issue, illustrating the customer support of the communication equipment company.
Extreme Networks, Inc. (NASDAQ:EXTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Extreme Networks, Inc. (NASDAQ:EXTR) was held by 36 hedge fund portfolios, up from 32 in the previous quarter, according to our database.
We discussed Extreme Networks, Inc. (NASDAQ:EXTR) in another article and shared the list of best performing stocks. In addition, please check out our hedge fund investor letters Q4 2023 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.
