Should You Expect Investor Sentiment for Klaviyo (KVYO) to Improve?

KVYO +0.60%

Sands Capital, an investment management company, released its Q3 2025 investor letter for the “Sands Capital Technology Innovators Fund.” A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant, long-term technological changes. The fund returned 8.4% (net) in the third quarter compared to a 12.5% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. Despite concentrated leadership, global equities appreciated in the third quarter, as measured by the MSCI ACWI. The United States accounted for almost 70 percent of the index's increase, while developed markets outside the U.S. and emerging markets also provided positive returns. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its third-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as Klaviyo, Inc. (NYSE:KVYO). Klaviyo, Inc. (NYSE:KVYO) is a technology company that provides a software-as-a-service platform. The one-month return of Klaviyo, Inc. (NYSE:KVYO) was 7.65%, and its shares lost 23.39% of their value over the last 52 weeks. On November 28, 2025, Klaviyo, Inc. (NYSE:KVYO) stock closed at $28.56 per share, with a market capitalization of $8.624 billion.

Sands Capital Technology Innovators Fund stated the following regarding Klaviyo, Inc. (NYSE:KVYO) in its third quarter 2025 investor letter:

"Klaviyo, Inc. (NYSE:KVYO) is an innovative provider of business-to-consumer (B2C) marketing technology. The company delivered a strong second quarter, highlighted by its largest topline beat to date, record customer additions, and a significant guidance raise, which drove upward revisions to full-year growth expectations. Despite this performance, sentiment remains muted, weighed down by broader distaste for application software and concerns around agentic commerce, tariffs, and shifting Gmail protocols. We believe these concerns are largely unfounded. With continued strong execution, the potential to evolve into a true platform business, and a steady pipeline of new product launches, we expect investor sentiment to improve over time."

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Klaviyo, Inc. (NYSE:KVYO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Klaviyo, Inc. (NYSE:KVYO) at the end of the third quarter, which was 41 in the previous quarter. In the third quarter of 2025, Klaviyo, Inc. (NYSE:KVYO) reported revenue of $311 million, up 32% year-over-year. While we acknowledge the potential of Klaviyo, Inc. (NYSE:KVYO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Klaviyo, Inc. (NYSE:KVYO) and shared the list of best mid cap stocks to buy according to hedge funds. 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.