Should You Sell Your Stake in PagerDuty (PD)?

Company Overview - Renaissance Investment Management released its Q2 2025 "Small Cap Growth Strategy" investor letter, highlighting the volatility in the stock market during the second quarter due to unexpected tariff announcements, which caused a 7% drop in stock prices from April 2 to April 7 [1] - The Russell 2000 Growth Index rallied in the second quarter, and the strategy outperformed the index, indicating positive economic growth ahead supported by sound corporate earnings and solid economic data [1] PagerDuty, Inc. (NYSE:PD) Performance - PagerDuty, Inc. is a digital operations management platform, with a one-month return of -0.06% and a 52-week loss of 10.33%, closing at $16.32 per share on September 19, 2025, with a market capitalization of $1.522 billion [2] - The company reported revenue of $123 million in the fiscal second quarter of 2026, representing a 6% year-over-year growth [4] Investment Strategy and Changes - Renaissance Investment Management exited its position in PagerDuty, Inc. due to struggles in reaccelerating revenue growth to double-digit levels, ongoing execution challenges, and increased competition from larger players [3] - Despite acknowledging PagerDuty's potential, the company believes that certain AI stocks offer greater upside potential and less downside risk, suggesting a shift in investment focus [4]