Criteo S.A. (CRTO) Fell on Increasing Investor Concerns

Group 1 - ClearBridge Investments released its second-quarter 2025 investor letter for the ClearBridge Small Cap Strategy, highlighting volatility in small-cap stocks during the quarter [1] - The Russell 2000 Index rebounded 10% from its November 2024 record highs, driven by growth, momentum, high-beta, and low-quality stocks, but underperformed compared to the Russell 1000 Index, which returned 11.1% [1] - The ClearBridge Small Cap Strategy underperformed its benchmark during this period [1] Group 2 - Criteo S.A. (NASDAQ:CRTO) was highlighted in the investor letter, with a one-month return of -6.74% and a 52-week loss of 47.53% [2] - As of September 12, 2025, Criteo S.A. closed at $22.01 per share, with a market capitalization of $1.152 billion [2] - Concerns over Criteo's long-term growth and profitability forecasts were raised after its largest retail media client announced a significant reduction in the scope of Criteo's services starting in November [3] Group 3 - Criteo S.A. is not among the 30 most popular stocks among hedge funds, with 18 hedge fund portfolios holding the stock at the end of the second quarter, up from 15 in the previous quarter [4] - While Criteo is acknowledged for its investment potential, the company is viewed as having less upside compared to certain AI stocks, which are considered to carry less downside risk [4]