Sands Capital, an investment management company, released its "Sands Capital Technology Innovators Fund" Q2 2026 investor letter. A copy of the letter can be downloaded here. In the quarter, global equities rebounded sharply, with the MSCI ACWI posting its strongest quarterly gain since 2020, supported by broad market strength, easing geopolitical tensions, and continued enthusiasm for AI infrastructure. Information technology led the advance, with semiconductor and hardware companies accounting for most of the index's rise. The fund returned 26.9% (net) in the second quarter of 2026. The portfolio benefited from strong gains across memory, software infrastructure, cybersecurity, and other AI-related holdings, although its concentrated exposure to mega-cap chip designers and manufacturers weighed on relative performance as leadership broadened into CPUs, networking, and memory. Vertical software, internet, and financial holdings were modest detractors amid macro concerns and uncertainty over AI disruption. The fund remains focused on critical AI bottlenecks, including compute, memory, manufacturing, networking, and power, while retaining selected businesses that may use AI to strengthen their competitive positions. You can check the fund's top five holdings to learn more about its leading investment ideas for the year.
In its second-quarter 2026 investor letter, Sands Capital Technology Innovators Fund highlighted Klaviyo, Inc. (NYSE:KVYO). Klaviyo, Inc. (NYSE:KVYO), a cloud-based software-as-a-service marketing platform, detracted from the Fund's performance during the quarter. On August 7, 2026, Klaviyo, Inc. (NYSE:KVYO) closed at $16.62 per share. The one-month return of Klaviyo, Inc. (NYSE:KVYO) was -4.81%, and its shares lost 44.73% over the past 52 weeks. Klaviyo, Inc. (NYSE:KVYO) has a market capitalization of $4.73 billion.
Sands Capital Technology Innovators Fund stated the following regarding Klaviyo, Inc. (NYSE:KVYO) in its Q2 2026 investor letter:
"Klaviyo, Inc. (NYSE:KVYO) is an innovative provider of business-to-consumer (B2C) marketing technology. While the company delivered a headline beat and raise, expectations had moved higher into the print after a sharp rebound from April lows, and investors focused on a smaller revenue beat and a slightly lower second-quarter margin guide. The reaction also reflected broader pressure on software stocks, where investor sentiment remains fragile and near-term execution concerns have weighed on valuation multiples. In our view, the selloff was disproportionate to the underlying business performance. Klaviyo continues to deliver strong revenue growth, has limited exposure to seat-based revenue disruption, and should continue to expand margins over time. We maintain conviction, supported by Klaviyo's opportunity to extend share gains, expand internationally and outside of ecommerce, and cross-sell its text-messaging and customer service platforms."

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Klaviyo Inc. (NYSE:KVYO) is one of the top stocks to buy according to Whale Rock Capital Management. On June 30, Klaviyo Inc. (NYSE:KVYO) announced that Composer, its AI marketing agent, moved into public beta, alongside major upgrades to its existing Customer Agent. Both tools are built directly into Klaviyo's customer relationship management platform and now share the same real-time customer data, which means actions taken by one agent make the other smarter over time, the company said.
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Klaviyo designed Composer to solve two common problems marketing teams face, starting with figuring out where to focus their efforts and not having enough time to act on opportunities. The tool also identifies high-value opportunities, builds the campaigns needed to capture them, and carries out the work automatically rather than just offering suggestions.
On the other hand, Customer Agent handles customer service and support. The tool works across multiple channels, including web chat, email, text messages, and WhatsApp, and users can set it up once to run consistently everywhere or embedded into a brand's own custom interfaces.
According to Klaviyo, most companies investing in AI have not yet seen meaningful returns. As such, the company is positioning its dual-agent approach as a way to close that gap by connecting marketing and service functions instead of running them separately.

Klaviyo Inc. (NYSE:KVYO) is one of the best new tech stocks to buy according to **** ysts. On June 30, Klaviyo announced the public beta launch of its AI marketing agent, Composer, alongside significant updates to its Customer Agent. By integrating both tools into its CRM platform, Klaviyo enables these agents to share real-time customer data, allowing marketing and service teams to work in tandem to drive revenue.
Unlike generic AI, these agents leverage shared customer history, purchase intent, and behavioral signals to deliver personalized interactions. The system creates a continuous feedback loop where service resolutions inform marketing campaigns, and campaign engagement refines future customer service, ensuring each interaction becomes increasingly intelligent.
Klaviyo Inc.'s (NYSE:KVYO) CMO, Jamie Domenici, noted that this unified approach addresses the common struggle of AI tools lacking actionable customer context. By breaking down organizational silos, the platform allows brands to translate deep customer insights into faster growth and more effective, personalized consumer experiences.
Klaviyo Inc. (NYSE:KVYO) delivers an AI-first SaaS platform for B2C clients that supports customer relationship management. The platform enables data storage, campaigns, marketing automation, and **** ytics. It also enables customer service integration and omnichannel marketing tools, such as email, SMS, and WhatsApp campaigns.
While we acknowledge the potential of KVYO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

This week, new data from Statusphere reveals a shift in how micro-influencer content is being treated and how AI is changing the way brands are using that content. This week, Klaviyo said its AI solution is closing the traditional gap between digital marketing and customer service.
And lastly, Packsize said this week that it wrapped up an agreement to acquire the packaging business of Panotec, thereby significantly growing its business.
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