The Unstoppable Surge of AI Stocks
The ascent of artificial intelligence (AI) stocks in recent years has been nothing short of remarkable. Comparable to the transformative impact of previous technological revolutions like the internet, AI is poised to revolutionize multiple industries in the coming years, projected to reach a market size of $825 billion by 2030.
While tech giants such as Nvidia and Microsoft garner attention with their soaring stock prices, smaller, under-the-radar AI stocks have also been making substantial gains.
The Rise of Veritone in AI
Veritone, based in Austin, Texas, and established in 2014, specializes in cognitive AI solutions that extract data from text, speech, and video. Their applications span various sectors such as media, legal, and compliance. With its aiWARE platform, the company enables the development and deployment of customized AI applications or the utilization of pre-built solutions, offering scalability and flexibility.
With a modest market cap of approximately $194.6 million, Veritone’s shares have surged an impressive 160.7% year-to-date. Despite this climb, a recent 39% pullback from its 52-week high has introduced volatility into the stock.
The Driving Force Behind VERI’s Success
In February last year, Veritone unveiled its generative AI platform, Veritone Generative AI, a Platform-as-a-Service (PaaS) that supports and orchestrates large language models (LLMs). Recognized at the Nabshow event for its generative AI capabilities, Veritone’s platform is primed to capitalize on the growing trend of generative AI.
Counting mega-cap companies like Microsoft and Accenture among its partners, Veritone’s impressive clientele includes Deloitte, Oracle, Amazon, CNN, and ESPN. Despite these significant associations, the company’s financials remain a point of concern, with ongoing losses, declining revenues, and a substantial cash burn.
An Uncertain Future for VERI Stock
Veritone’s financial performance leaves investors wary, with the company still grappling with losses and dwindling cash reserves. While analysts remain divided in their opinions on the stock, with ratings ranging from “Strong Buy” to “Strong Sell,” the stock’s current trading price sits at a premium compared to its target price, suggesting potential downside ahead.
