Well, hold onto your wallets because Conestoga Capital Advisors just dropped their fourth-quarter 2025 investor letter like it’s hot! Spoiler alert: U.S. equities had a stellar year, performing better than a dog chasing its tail—double-digit gains across all major indices! Curious about their secrets to success? You can download a copy of the letter here. But let’s not get too carried away; while the Conestoga Micro Cap Composite tried to fulfill its noble mission of not losing money (noble, indeed), it still managed to slip on a banana peel in Q4 with a modest return of -1.91% net of fees. That’s right folks, while it was cruising downward, the Russell Microcap Growth Index was partying it up with gains of 2.14% for the fourth quarter and a flashy 21.84% for the year. Who’s counting, right?
Now, let’s chat about the star of the show: Oddity Tech Ltd. (NASDAQ:ODD). According to Conestoga’s latest missive, Oddity is all about slathering AI on everything in the beauty and wellness market. Think of it as a digital beauty guru that says, “Hey, you don’t need to spend a fortune to look good!” As of February 19, 2026, their stock closed at a mere $30.59 per share—a price that probably sounds better if you’ve just been informed that it’s down 13.64% over the past month and 30.48% over the last year. Ouch! Oddity Tech has a market cap of around $1.757 billion, so at least it can buy itself a nice dinner to drown its sorrows.
In their letter, Conestoga couldn’t resist gushing over Oddity Tech, stating:
“Oddity Tech Ltd. (NASDAQ:ODD) is like the fairy godmother of consumer technology, magically transforming the beauty and wellness industry. They use artificial intelligence to build and scale digital-first brands—imagine if your beauty routine was run by a computer nerd! They sell directly to consumers and dodge wholesale exposure like they owe them money. With over 20% operating margins and revenue growth of more than 20%, they’re like the overachieving student who aces their exams but still can’t figure out where they left their glasses—estimated revenue hitting $800 million in 2025! Oh, and did I mention Oran Holtzman, the founder, is riding high with over 20% of the shares? Talk about having skin in the game!
Analyzing the landscape of popular stocks, sadly, Oddity Tech does not make it onto our glamorous list of the 30 Most Popular Stocks Among Hedge Funds. In fact, it barely scrapes by with just 31 hedge funds holding its shares—a real drop from 36 the previous quarter. But do not fret; they still have a following, albeit one that resembles a social media influencer’s following after a scandal.
Though we see the glimmers of potential in Oddity Tech, we’re leaning towards AI stocks that seem to promise more bang for your buck, minus the bitter aftertaste of risk. If you find yourself searching for the holy grail of undervalued AI stocks—one that benefits from those lovely Trump-era tariffs and the ongoing trend of onshoring—don’t just stand there! Check out our free report on the best short-term AI stock. It’s like finding a $20 bill in an old jacket pocket—unexpected but entirely welcome!
