Align Technology (ALGN) Slid as Demand Rebound Expectations Fell Short

3 weeks ago 14

Soumya Eswaran

Mon, December 1, 2025 astatine 6:54 AM CST 3 min read

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equities deed a grounds precocious successful the 3rd quarter, fueled by continued gains successful exertion and falling enslaved yields. Easing tariff rhetoric and renewed AI infrastructure investments boosted ample tech stocks. In mid-September U.S. Federal Reserve lowered rates by 25 ground points. Against this backdrop, the money returned -1.78% (net) compared to the Russell 2500 Growth Index’s 10.73% return. Sector positioning and the avoidance of names that bash not conscionable the firm’s strict concern subject led to the underperformance of the money successful the quarter. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Meridian Growth Fund highlighted stocks specified arsenic Align Technology, Inc. (NASDAQ:ALGN). Align Technology, Inc. (NASDAQ:ALGN) designs, manufactures, and markets Invisalign wide aligners and iTero intraoral scanners and services. The one-month instrumentality of Align Technology, Inc. (NASDAQ:ALGN) was 6.25%, and its shares mislaid 37.14% of their worth implicit the past 52 weeks. On November 28, 2025, Align Technology, Inc. (NASDAQ:ALGN) banal closed astatine $147.19 per share, with a marketplace capitalization of $10.669 billion.

Meridian Growth Fund stated the pursuing regarding Align Technology, Inc. (NASDAQ:ALGN) successful its 3rd 4th 2025 capitalist letter:

"Align Technology, Inc. (NASDAQ:ALGN) is simply a planetary person successful dental exertion and the shaper of Invisalign wide aligners. We were initially drawn to Align for its beardown competitory presumption and innovative iTero integer scanning system, which enables clinicians to plan much precise attraction plans and enhances the wide diligent experience. The banal underperformed during the 4th arsenic expectations for a request rebound did not materialize. Patient conversion rates softened, astir notably wrong the teen segment, wherever gross maturation slowed to 3%. In addition, marketplace stock gains reversed amid a weaker macroeconomic backdrop for discretionary dental procedures and a displacement toward lower-cost wires and brackets. Given these dynamics, we trimmed our presumption during the period."

Among Small-Cap Healthcare Stocks Hedge Funds is Buying

Align Technology, Inc. (NASDAQ:ALGN) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge money portfolios held Align Technology, Inc. (NASDAQ:ALGN) astatine the extremity of the 3rd quarter, which was 54 successful the erstwhile quarter. In Q3 2025, Align Technology, Inc. (NASDAQ:ALGN) reported gross of $995.7 million, down 1.7% from the anterior 4th and up 1.8% from the corresponding 4th a twelvemonth ago. While we admit the imaginable of Align Technology, Inc. (NASDAQ:ALGN) 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.