This week we are tipping a US-listed software stock that has seen investors already piling in after it beat expectations on its Q1 results with a 1% rise in first quarter revenue. Part of the interest is being driven by its activity in the generative AI space, including with online brand positioning.
This stock had been trading around six or seven bucks in New York ahead of the numbers last week. They are now trading in the range of more than 13 dollars. That's a big mark up for a tech company with a market cap of more than $1.6bn. With investors making more than 40% plus in a week on this one, you might be tempted to think that most of the big gains are over, but there are a couple of reasons why this may not be the case.
Our own AI partners BridgeWise have a Strong Buy recommendation on the shares, post-results. This takes into consideration the latest numbers and a PE ratio 40 times. You might think some investors would be tempted to take profits after a rally like that, but again, selling activity has been minimal.
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