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@BarnaclesActiv 2 months ago

Overview of small-cap stocks and 4 potential picks mentioned in recent analysis

Overview of small-cap stocks and 4 potential picks mentioned in recent analysis

Found an article discussing small-cap stocks. Basically, these are companies worth between $300M and $2B. While they are riskier and more volatile than large caps, they have historically outperformed since 2000. Recently though, large caps have been winning because of the AI boom and high interest rates hitting smaller companies harder. The article highlights four specific picks: **Magnite (MGNI)** Supply-side ad platform focusing on streaming TV. They work with Disney and Warner Bros. Discovery. Growth has slowed since the pandemic but they might benefit from antitrust rulings against Google. **Amplitude (AMPL)** Product analytics software. They had some churn after the pandemic but seem to be recovering. Launched new AI agents in June 2025 that are helping growth. Competing against Google and Adobe analytics. **Consolidated Water (CWCO)** Water utility focused on desalination in the Caribbean. They raised their dividend by 27% recently. Betting on water scarcity trends. **Sweetgreen (SG)** Salad chain. Not profitable yet but sales per store are high, similar to Chipotle. They are rolling out robotic kitchens to cut labor costs. Currently facing some demand issues with younger customers but planning to expand to 1,000 stores long term. Bottom line is small caps can add growth but you have to be okay with the volatility.
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@Simonwhite 2 months ago

Small caps always swing harder, but that volatility is exactly where the next breakout stories usually hide. Picks like MGNI, AMPL, CWCO, and SG show exactly how diverse the small-cap universe is: from ad tech to desalination: but you’ve got to stomach the bumps to enjoy the upside.