Connect with us

3 Artificial intelligence Stocks to Consider as the Trend Heats Up

3 Artificial intelligence Stocks to Consider as the Trend Heats Up



Working the stock market is a data game. Getting the best information, in a timely way, and knowing how to use it, are keys to success. So, here are some numbers to think about. According to industry market research, artificial intelligence companies and products are on the verge of explosive growth. The sector totaled some $10 billion in 2018; by 2025, the companies, products, value-added, and marketing are expected to reach over $125 billion.

You probably already are on it, even if you didn’t realize. AI tech lies behind the growth of digital personal assistants like Alexa and Siri. Most online advertising and pop-ups are powered by AI systems.

All of these systems are going to improve, as engineers and developers fine-tune the coding, create new search apps, and update the underlying hardware. And those technological improvements are going to find their way into stock values. The companies that roll them out, and build on them, are going to get a share of the coming boom.

With this in mind, Wall Street analysts have tapped three lesser-known stocks as primed for gains. They’re an interesting lot, spread across a variety of sectors, each with their own approach to artificial intelligence.

Opening up the TipRanks’ database, we’ve pulled the details on these names, to find out what makes them compelling.

Remark Holdings (MARK)

The first company on our list uses AI to power its network of subsidiaries. Remark Holdings has its hands in many baskets – online retail, digital content delivery, facial recognition, and even China’s somewhat notorious social credit system. The company is headquartered in Las Vegas, with offices in LA, Beijing, Shanghai, and Chengdu.

Remark’s platform product, KanKan, is in use across China, especially in retail. The platform delivers insights on customer behavior, so that retailers can fine-tune operations and bring the right items to the sales floor at the right time. Online, KanKan offers market targeting and credit risk analysis in the fintech sector. And in the public safety niche, Remark’s KanKan brings behavioral analytics to construction sites, restaurants, and roadways.

Like many emerging tech companies, Remark typically operates at a net loss. However, the scale of that loss has been declining in sequential quarters, even during the corona pandemic. EPS in the first quarter this year was (5 cents), while it improved to (4 cents) in Q2. Both of those results beat the forecast. Revenues have been growing steadily, too, from $260,000 in Q4 last year to $431,000 in Q1 this year, to $2.3 million in Q2, the most recent reported. The company’s new bio-safety business, which uses AI to monitor thermal imaging products in casinos, restaurants, hotels, and medical centers – and is based in the US – brought in $1.1 million of that revenue.

Covering the stock for Roth Capital, 5-star analyst Darren Aftahi strikes an upbeat note in his comments on MARK.

“MARK announced it has begun discussions for potential partnerships with larger global enterprise customers for AI software deployments, which could aid scale. Additionally, MARK is continuing to see healthy demand from new customers for thermal-based offerings, while current customers have also expressed interest in additional AI features, which we believe suggests MARK’s solution has staying power with customers.”

In line with this outlook, Aftahi rates MARK a Buy along with a $4.25 price target. This figure suggests that MARK shares have a stellar 425% upside potential from their current price of $1. (To watch Aftahi’s track record, click here)

WISeKey International Holdings (WKEY)

Next on our list is WISeKey, a company in the cybersecurity industry. WKEY develops codes, crypto-algorithms, and chips necessary to the functioning of online digital security. The company does not confine itself to a single pathway; it creates secure digital identification ecosystems using AI, as well as blockchain and IoT systems. WKEY’s customers include marketers, who are looking for brand protection, and financial institutions seeking secure digital systems.

Among WISeKey’s key products are semiconductor chips used in secure microcontrollers and smart card readers. These chips enable AI platforms to speed up transactions while improving safety and privacy. The company is also heavily involved in online brand and digital identity protection. WKEY’s AI enabled coding and algorithms power recognition software that improves security for customers needing signature or facial authentication.

WISeKey finished 1H20 with $8 million in revenues and $16 million in cash reserves, putting the company in a solid position to weather the COVID-19 pandemic.

Covering this stock for H.C. Wainwright, analyst Kevin Dede writes, "In our view, WISeKey represents an asymmetrical risk-reward opportunity heightened by what has proven to be a surprising ability to deliver a constant stream of new technology and solutions with realworld applicability, and perhaps most importantly, accordant customer relationships.”

Dede’s comments are optimistic, as is his Buy rating and $9 price target. This target implies implies 31% upside to the stock for the coming year. (To watch Dede’s track record, click here)

Five9 (FIVN)

The last stock on today’s list, Five9, is a cloud computing firm offering a scalable contact center platform based on intelligent cloud technology. With the corona virus pandemic having further pushed the ever-growing trend towards moving routine business online, Five9’s services have become more important to its customers – and more marketable.

The company has seen slow, steady revenue growth, which reached $99.8 million in Q2, and EPS that consistently beats the forecasts. While the company posted net losses in both Q1 and Q2, earnings in those quarters beat the estimates by 33% and 50% respectively.

Five9 uses AI tech to create a better customer contact platform. The company’s products – on mobile, web, chat, email, or social media – streamline the agent-customer engagement, making inbound and outbound contacts more efficient for the contact center. One agent can handle each of the channels from a single desktop AI interface. The promise – and more importantly, delivery – of better online customer service is a gold mine in today’s environment, and supports the quarterly results.

From Canaccord Genuity, 5-star analyst David Hynes sees Five9 as top-tier when it comes to technology and products.

“One of several important differentiators for Five9 is the firm’s open platform and the best-of-breed choices that it avails to customers. In a continuation of that philosophy, Five9 has announced the availability of Voicestream, an API for streaming agent/caller audio to third-party applications in real-time. This API enables real-time, cloud-to-cloud media streaming so that developers and partners who are focused on AI and other innovative areas can integrate their applications directly into Five9’s platform,” Hynes opined.

Accordingly, Hynes gives FIVN shares a Buy rating, and his $145 price target suggests the stock has a 23% upside potential for the coming 12 months. (To watch Hynes’ track record, click here)

To find good ideas for AI stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post 3 Artificial intelligence Stocks to Consider as the Trend Heats Up appeared first on TipRanks Financial Blog.

Read More

Continue Reading


Crypto exchange Binance restores euro services after new fiat partners

Euro payments, deposits, and withdrawals are back on for European Binance users months after the severance of services by PaySafe.



Euro payments, deposits, and withdrawals are back on for European Binance users months after the severance of services by PaySafe.

Crypto exchange Binance has announced it has onboarded new partners to handle euro deposits and withdrawals, months after losing its previous fiat partner PaySafe in September. 

In an Oct. 19 statement, Binance announced that it had signed agreements with new fiat partners for euro payments, deposits, and withdrawals.

The move follows regulatory and debanking woes in the European Union, where the firm was forced to look for new banking partners after it lost the support of PaySafe in September.

Binance said that users have already started being migrated to the new services provided by “a number of new regulated and authorized fiat partners.” It did not specify which firms it had partnered with, however.

The announcement noted that fiat services offered by the new partners include EUR deposits and withdrawals via Open Banking and SEPA/SEPA Instant.

Users can also buy and sell crypto using SEPA (Single Euro Payments Area), bank cards, and their fiat balances, and trade EUR spot pairs.

In late September, Binance urged its European users to convert their euros into Tether (USDT) before the end of October, though the latest announcement could suggest this is now not necessary.

Related: Binance limits withdrawals in Europe, cites payment processor issues

However, some users were still reporting issues depositing euros even after the announcement, while others asked about fiat partners for the British pound in the UK.

Paysafe pulled support for transactions in British pounds in May following concerns raised by United Kingdom financial regulators over the partnership.

On Oct. 16, Binance suspended access to its exchange for new users based in the UK. The move followed the termination of a partnership with a third party to approve communications on its platform under new local rules by the country’s watchdog, the Financial Conduct Authority (FCA).

Binance has yet to source fiat partnerships for its UK exchange where British users are still unable to deposit GBP.

Cointelegraph contacted Binance for more specifics but did not receive an immediate response.

Magazine: SBF’s alleged Chinese bribe, Binance clarifies account freeze: Asia Express

Read More

Continue Reading


‘He broke his word’ — Ex-ConsenSys staff sue founder over employee equity deal

ConsenSys founder Joseph Lubin has been named in a new lawsuit filed in New York by over two dozen former ConsenSys employees.



ConsenSys founder Joseph Lubin has been named in a new lawsuit filed in New York by over two dozen former ConsenSys employees.

Over two dozen former employees of Ethereum infrastructure firm ConsenSys have filed a fresh lawsuit against the firm’s founder and CEO, Joseph Lubin, over claims he diluted employee equity shares against earlier promises.

The former staff allege that Lubin — who is also a co-founder of Ethereum — breached this “no-dilution promise” made in 2015, according to the plaintiff’s Oct. 19 filing in a New York Supreme Court.

The plaintiffs allege Lubin lured in “smart and motivated” colleagues to work for ConsenSys in late 2014, claiming the firm would become the “future of cryptocurrency” and the “crypto Google.”

Around that time, Lubins allegedly stated in a document that he wouldn’t dilute employee equity shares; the plaintiffs allege he later broke that promise.

“It is my intention that the percentage ConsenSys members receive will not be diluted by additional issuance,” the document reportedly wrote.

The plaintiffs argued Lubin didn’t just break the promise but also “got rich” off it while they “got nothing.”

“He broke his word [and] he violated his legal commitments and duties. While Lubin got rich, Plaintiffs got nothing.”

The plaintiffs, who held shares in Swiss-based holding company ConsenSys AG — formerly ConsenSys Mesh — claim the shares were rendered “worthless” when Lubin transferred cryptocurrency wallet MetaMask and other assets to its new United States-based entity in 2020.

Excerpt from the lawsuit brought by former ConsenSys employees. Source: New York Supreme Court

The plaintiffs also named investment bank JPMorgan — as one of the seven defendants — alleging it ”played a pivotal role” in negotiating the asset transfer and became a new equity holder in the new U.S. entity:

“Lubin, his inner circle, and JPMorgan kept the details of the negotiations secret—Plaintiffs were left in the dark.

“Lubin did not bring over many of his early employees—the Plaintiffs here—as equity holders in the new company. Instead, they continued to hold shares in the far less valuable entity that had been stripped of its assets,” the plaintiffs added.

ConsenSys says plaintiffs claims are ‘meritless’

Speaking to Cointelegraph, a ConsenSys spokesperson called the claims "frivolous," saying the plaintiffs are now trying their luck in the U.S. legal arena after “two years of getting nowhere with their frivolous claims” in a Swiss court.

Related: ConsenSys founder ‘bullish’ on Ethereum following crypto winter performance

“[The] plaintiffs now believe their meritless claims stand a better chance of yielding a pay day if they game U.S. courts and entangle ConsenSys Software and other unrelated parties in litigation.” The ConsenSys representative added:

“We fully expect that the plaintiffs, who were never employees of Consensys Software, will soon find this gambit is another fruitless attempt to enrich themselves from the success of others.”

Despite claims that the plaintiff’s legal challenge went “nowhere” in Switzerland, the country’s High Court of Zug issued a judgment in favor of the plaintiffs.

The plaintiffs say the ruling supports their position that Lubin breached his duties.

ConsenSys was founded in October 2014, about nine months before the Ethereum blockchain launched in mid-2015.

The firm develops and hosts infrastructure projects that underpins much of the Ethereum network.

The plaintiffs are seeking damages across six separate causes of action, in an amount to be determined at trial.

Magazine: Joe Lubin: The truth about ETH founders split and ‘Crypto Google’

Read More

Continue Reading


Canada’s productivity crisis linked to government overspending

Dubious government investments are stunting our standard of living While government policies can benefit societies and economies, they often produce the…




Dubious government investments are stunting our standard of living

While government policies can benefit societies and economies, they often produce the opposite results.

Recent concerns highlight Canada’s worrying trend of dismal productivity growth and growth prospects, with several international bodies predicting minimal growth in Canadians’ real (adjusted for inflation) personal income over the next 30 years (an entire generation).

To address this productivity slump, governmental strategies have varied.

One strategy has emphasized workers’ skills, with authorities advocating for youth to pursue marketable technical trades rather than conventional university degrees.

Another strategy has been to foster a more extensive, intensive, and robust innovation ‘ecosystem’ coupled with venture capital and institutional investor funding. Addressing permitting obstacles and other regulatory impediments are another approach.

Yet, despite the potential of these strategies, the persistent actions of both federal and provincial governments challenge productivity growth. Notably, these governments often allocate extensive taxpayer funds towards projects with minimal returns on investment.

Over the years, provincial utilities like BC Hydro, Manitoba Hydro, and Nalcor (an umbrella company for Newfoundland and Labrador Hydro) have seen significant overruns. The financial commitment to these projects, such as the Site C dam, Keeyask, Bipole III, and Muskrat Falls, far surpassed initial projections.

A staggering $43.2 billion was spent, compared to initial expectations of $23.9 billion, to produce just a couple of gigawatts of ‘cheap’ power – just enough for a million households. For perspective, the same funds could have been channelled into nuclear energy, producing more power and less environmental harm.

In addition to these massive provincial governmental blunders, the federal government lavished $35 billion in tax relief subsidies for just three electric vehicle (EV) battery plants. According to the federal Parliamentary Budget Officer, two of these plants ‘might’ be paid off in ‘as soon as’ 20 years.

Topping it off is Ottawa’s purchase and expansion of the Trans Mountain Pipeline, where government-induced regulatory obstacles continue to explode costs. Ottawa has now spent a staggering $30.9 billion to expand the pipeline, almost six times the original estimate of $5.3 billion. It will be impossible to recoup anything near what is being spent. For more than eighty percent of its route, the new, parallel Trans Mountain line follows the existing line: an additional enormous expense accrued from massive mismanagement.

A common thread weaving through these projects is the government’s willingness to finance ventures that initially seemed economically questionable. State-owned enterprises often prioritize political motives over profitability – a theme evident in the electric vehicle and Trans Mountain decisions. Perhaps the renowned work “How Big Things Get Done” would be more aptly named “How Big Things Get Botched” in Canada.

Ultimately, a nation’s economic vitality hinges on the collective performance of its businesses and people. Investments in underperforming projects yield minimal returns. The consequence of such political spending is reduced productivity and diminished wealth per individual.

Unfortunately, our kids will bear the brunt of these decisions, likely facing a compromised standard of living.

By Ian Madsen

Ian Madsen is the Senior Policy Analyst at the Frontier Centre for Public Policy.

Troy Media

Read More

Continue Reading