908 Devices Inc. (MASS): Among Nicholas J. Pritzker's Stock Picks with Huge Upside Potential

We recently published an article titled Billionaire Nicholas J. Pritzker's 8 Stocks with Huge Upside Potential. In this article, we are going to take a look at where 908 Devices Inc. (NASDAQ:MASS) stands against Nicholas J. Pritzker's other stock picks with huge upside potential.

Nicholas J. Pritzker is the chairman and co-founder of Tao Capital Partners, a San Francisco-based venture capital firm established in 2013. A prominent American entrepreneur and member of the influential Pritzker family, Nicholas Pritzker is widely recognized for his business acumen and leadership within both the family’s ventures and his own independent endeavors. He previously served as Chairman and CEO of the Hyatt Development Corporation and is associated with the Pritzker family's substantial business interests, including ownership stakes in Hyatt Hotels and Conwood, a leading chewing tobacco company. His academic journey includes studies at Reed College, Lake Forest College, and the London School of Economics, followed by earning a J.D. from the University of Chicago.

At Tao Capital Partners, Pritzker oversees a firm that strategically focuses on investments in technology, transportation, healthcare, education, sustainable food, alternative energy, agriculture, consumer products, real estate, and hospitality. Although he holds the role of chairman, Nicholas Pritzker is not the portfolio manager of the firm. Instead, that position is held by Matthias Brachtel, who is responsible for managing the firm’s investment portfolio and making critical financial decisions. Under their leadership, Tao Capital has established a reputation for backing innovative and sustainable ventures, emphasizing long-term positive impacts alongside financial returns.

Tao Capital Partners follows a disciplined investment philosophy, targeting sectors poised for growth and transformation. The firm’s investments include companies within the technology and transportation industries, as well as those focused on healthcare, education, sustainable food, and clean energy solutions. This diversified approach reflects the firm’s commitment to not only achieving financial gains but also fostering advancements in critical global sectors.

As of Q4 2024, Tao Capital Partners reported managing $143.28 million in 13F securities across ten core holdings. The firm’s commitment to sustainable and impactful investment aligns with Nicholas Pritzker’s broader vision of leveraging capital to drive positive change. Pritzker’s guidance continues to shape the firm’s strategic direction, while Matthias Brachtel’s portfolio management expertise ensures the optimization of returns within the chosen sectors. Through a combination of innovative vision and practical financial management, Tao Capital Partners continues to build a diverse portfolio aimed at fostering sustainable growth.

Our Methodology

For this article, we searched through Tao Capital’s Q4 2024 13F filings to identify billionaire Nicholas J. Pritzker's stock picks with the highest upside potential. We compiled the equities with upside potential higher than 2% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).

908 Devices Inc. (NASDAQ:MASS)

Number of Hedge Fund Holders as of Q4: 9

Tao Capital’s Equity Stake: $1.25 Million

Upside Potential as of May 8: 10.50%

908 Devices Inc. (NASDAQ:MASS), a commercial-stage technology company specializing in mass spectrometry devices, reported notable growth and strategic shifts in its fourth-quarter 2024 financial results. The company, which develops handheld and desktop mass spectrometry tools for life sciences research, bioprocessing, forensics, and adjacent markets, saw revenue rise 31% year-over-year to $18.8 million. This growth was driven by a 22% increase in handheld revenue and a significant 56% surge in desktop revenue. The installed device base expanded by 23% to 3,504 units, with 219 handheld and 32 desktop devices placed during the quarter. Recurring revenue accounted for 39% of the total, indicating an ongoing commitment to long-term customer engagement.

Gross profit for Q4 2024 was $9.1 million, up from $7.3 million in the prior year, though the GAAP gross margin dipped to 48% from 51%. On an adjusted basis, gross profit increased to $10.0 million, reflecting a higher adjusted margin of 54%, compared to 53% in the same period of 2023. However, 908 Devices Inc. (NASDAQ:MASS)’s operating expenses surged to $29.4 million, primarily due to a $10.1 million non-cash charge related to goodwill impairment and the integration costs of RedWave Technology. This led to a net loss of $19.4 million for the quarter, compared to a $7.4 million loss in the prior year.

To streamline operations, 908 Devices Inc. (NASDAQ:MASS) sold its desktop assets—including MAVEN, MAVERICK, REBEL, and ZipChip products—for $70 million shortly after year-end. As of December 31, 2024, the company held $69.6 million in cash and marketable securities with no debt, maintaining financial flexibility. Looking ahead, 908 Devices anticipates full-year 2025 revenues from continuing operations of $53 million to $55 million, representing an 11% to 15% growth over 2024. This projection underscores 908 Devices Inc. (NASDAQ:MASS)’s strategic focus on handheld devices while optimizing its balance sheet through asset divestitures.

Overall MASS ranks 7th among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential. While we acknowledge the potential of MASS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MASS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.