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Yahoo
4 days ago
- Business
- Yahoo
Palantir or AMD: UBS Picks the Superior AI Stock to Buy After Earnings
The AI boom is nearly 3 years old, and one thing is certain about it: the boom has legs, and AI is here to stay. More and more companies are turning to the technology to enhance all sorts of functions, from customer service to chatbots to high-level data analytics and even to decision-making processes. According to Fortune Business Insights, up to 35% of all businesses have integrated AI into their work models. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. This equals big money for the AI developers out there. Chip makers, AI app creators, data analysis firms – all of these and more have created an industry that was valued at $233 billion last year, and is estimated by Fortune Business Insights to hit $294 billion this year – and to show a CAGR of 29.2% through 2032, reaching $1.77 trillion that year. We should note that North American AI companies, mainly in the US, are leading this industry, with a 2024 market share of nearly 33%. With numbers like these, it's no surprise that UBS analysts are combing through the sector to pinpoint the most promising AI stocks. Their latest deep dive zeroes in on two recent earnings reporters – Palantir (NASDAQ:PLTR) and Advanced Micro Devices (NASDAQ:AMD) – to see which is the superior AI stock to buy. Let's take a closer look. Palantir The first AI stock we'll look at here is one of the leaders in the field. Palantir is well-known for marrying AI technology and capabilities to the field of data analysis, a match that has matured into a solid product platform – AIP, or AI Platform – and a set of tools whose wide applicability has made them highly popular. Since its founding in 2003, Palantir has developed a reputation for innovation, and has built itself into a $441 billion giant of the AI industry. Palantir's AIP is purpose-built to combine AI tech with human intuition and flexibility, to gain the best from both – and to improve outcomes and results in data analysis. The products also use AI technology to improve the user interface, making it easy to use and simple to understand. The AI reads and responds in real text, based on natural language models; in practice, Palantir's users don't need to learn machine language or computer coding to communicate with the AI – they can simply enter their requests in clear text and receive responses the same way. The technology is also amenable to real-time translations, making Palantir's products easy to market internationally – the system just needs to be told what language it is using, and its translation algorithms handle the rest. The company's products and capabilities have proven particularly popular in government use, especially in the Department of Defense. This is clear from the company's frequent announcements of new projects; DoD contracts and partnerships are regularly featured. Two examples: in July, Palantir announced that it had entered into a joint program, Warp Speed for Warships, with BlueForge Alliance, to accelerate warship production, fleet readiness, and digital transformation for the US Navy. And in June, the company launched a strategic partnership with Accenture, for the deployment of commercial-grade, AI-powered solutions designed to meet the high-priority operational challenges across a wide range of Federal agencies. In its last quarterly report, covering 2Q25, the company announced a series of strong gains in key metrics. The company's customer count was up 43% year-over-year, providing a base that supported a 48% YoY jump in revenue, to $1.004 billion – marking Palantir's first billion-dollar quarter and beating the forecast by $60.5 million. At the bottom line, Palantir realized non-GAAP earnings of 16 cents per share, 2 cents per share better than had been expected. The company's quarterly adjusted free cash flow came to $569 million, which represented a margin of 57%. And the company finished the quarter with cash and liquid assets totaling $6 billion. About the only thing that has grown faster than Palantir's financial markers was the company's share price. Year-to-date, shares in Palantir have far outpaced the broader markets. PLTR trades on the NASDAQ, which is up 11% so far this year, and it is a component of the S&P 500 index, which is up 9%; at the same time, for the year-to-date, PLTR has gained an impressive 147%. For the past three years, the stock's gain is over 1,849%. Covering Palantir for UBS, 5-star analyst Karl Keirstead notes the company's strong performance, yet he finds it impossible to ignore its high valuation. He writes, 'Palantir reported its 8th straight quarter of revs growth acceleration, a turnaround that we've never seen before, from 13% growth in 2Q23 to a 2Q25 growth rate of 48%, while at a $4 billion revs scale. Palantir raised the full year 2025 total growth guidance to 45% from 36%, without compromising on the non-GAAP margin target, which was inched up to 46%. Palantir is benefiting from a confluence of mega-trends in AI application development, investments at the data layer and the modernization of defense tech, but valuation at 136x CY26E FCF remains our key hurdle…' That hurdle leads Keirstead to rate PLTR as Neutral (i.e., Hold). His price target on the stock is $165, implying a one-year downside of ~12%. (To watch Keirstead's track record, click here) The Street generally would seem to agree with the UBS view. PLTR has a Hold consensus rating, based on 19 recent analyst reviews that include 4 to Buy, 13 to Hold, and 2 to Sell. The shares are priced at $186.96 and have an average price target of $152.12, suggesting that the share price will fall by ~19% in the next 12 months. (See PLTR stock forecast) Advanced Micro Devices Next up on the AI stage is AMD, a fast-rising contender steadily climbing the semiconductor ranks with a solid growth streak. It may not yet belong to the trillion-dollar club alongside Nvidia, Broadcom, and TSMC, but with a market cap near $280 billion, AMD is far from a lightweight. Over the past four quarters, it has pulled in roughly $30 billion in revenue, powered by a diverse portfolio spanning PCs, gaming rigs, and the surging AI/data-center market. Here, AMD isn't merely keeping pace – it's going toe-to-toe with Nvidia in AI accelerators and challenging Intel in PC microprocessors. That competitive edge has been sharpened in recent years as AMD shifted from its roots in PCs and gaming toward a bigger slice of the AI pie. The company now offers a broad lineup of AI solutions across CPUs, GPUs, and adaptive computing, with the flexibility to tailor products for specific customer needs – whether in data centers, at the edge, or in enterprise applications. This diversification isn't just theoretical; it's showing up in high-profile wins and an expanding product pipeline. In June, AMD landed Nokia as a customer for its 5th generation EPYC processors, which will power the Nokia Cloud Platform – a deal that underscores the broad applicability of its technology. Just a month earlier, AMD unveiled new high-performance computing products, including the Radeon RX 9060 XT and Radeon AI PRO R9700 graphics cards, plus the Ryzen Threadripper 9000 Series processors, targeting growth in gaming, content creation, and AI workloads. In 2Q25, AMD reported gains in both AI-related and gaming sales, with AI/data center sales climbing 14% YoY to $3.2 billion and gaming revenue surging 73% to $1.1 billion. Client revenue hit a record $2.5 billion, up 67% vs. the previous year, helping overall revenue climb 32% to $7.685 billion, thereby beating the estimates by $260 million. Non-GAAP EPS came in at 48 cents, in line with expectations, while cash on hand totaled $4.44 billion. For Q3, AMD anticipates revenue of ~$8.7 billion, with a possible variation of $300 million, compared to the $8.32 billion consensus estimate. That performance has caught the eye of UBS's Timothy Arcuri, an analyst who ranks in 6th spot amongst the thousands of Street stock experts, who sees reasons for both caution and optimism. 'AMD beat (on revenue) and guided above, but only to about where investor expectations were into the print. The bear would say that the beat was largely gaming-driven and while data center GPU is seeing a strong inflection in 2H, this was already baked into expectations and AMD did not raise the full year outlook for data center GPU despite all of the hyperscaler capex increases. In the very near-term, this may carry the day, but we think the path of travel for the business – and ultimately the stock – remains in a positive direction.' Laying out a supporting case for buying in, the 5-star analyst goes on to say, 'First, excluding China, AMD's data center GPU business is growing at a rate roughly similar to NVDA in C2H:25… Second, the outlook for market share growth in both the server and desktop portion of the CPU business is very strong with INTC's roadmap under duress – combined, these are ~35% of AMD's revenue and accretive to margins. Third, we would like to see gross margin inflecting quicker, but the underlying trends are still up and to the right with AMD able to at least hold GM flat even in CQ3 where the mix is unfavorable.' That conviction earned AMD a Buy rating from Arcuri, who set a $210 price target – pointing to a potential 21.5% gain over the next year. (To watch Arcuri's track record, click here) Overall, AMD boasts a Moderate Buy consensus rating from the Street, based on 37 analyst reviews that break down to 25 Buys and 12 Holds. The stock's current trading price of $172.76 is slightly below the $180.78 average target price, implying a modest one-year upside of ~5%. (See AMD stock forecast) To find good ideas for AI stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a 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. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-07-2025
- Business
- Yahoo
Brazos Safety Systems Announces Strategic Growth Investment from Altaline
LOS ANGELES & FORT WORTH, Texas, July 02, 2025--(BUSINESS WIRE)--Altaline Capital Management, LLC ("Altaline" or the "Firm"), a newly launched Los Angeles-based private equity firm focused on partnering with lower-middle market companies in the technology, business services, and financial services sectors, today announced a strategic growth investment in Brazos Safety Systems, LLC ("Brazos" or the "Company"), a leading provider of flight safety technology and analytics solutions for the global aviation industry. Founded in 2015 and headquartered in Fort Worth, Texas, Brazos Safety Systems (formerly Truth Data Insights) delivers state-of-the-art Flight Data Monitoring (FDM) and Flight Operations Quality Assurance (FOQA) analytics to a diverse range of rotorcraft and fixed-wing operators worldwide. Brazos serves critical sectors including emergency medical services, oil and gas, executive transport, logistics, and law enforcement, supporting more than 300 aircraft and analyzing data from over 200,000 flights. "Brazos Safety Systems has established itself as a trusted partner to aviation operators by delivering innovative, data-driven solutions that enhance flight safety and operational efficiency," said Brian Maher, Principal at Altaline. "We are excited to support Brazos in its next phase of growth as the company expands its technology platform and broadens its impact across the aviation industry." Brazos Safety Systems is recognized for its highly configurable technology and exceptional analytics services which enable operators to implement customized FDM and FOQA programs that meet rigorous regulatory and operational requirements while powering improved flight safety. The company's team of avionics experts, software developers, and flight data analysts is dedicated to providing actionable insights and tailored support to its clients. "This partnership with Altaline marks a significant milestone for Brazos," said Peter Henrikson, President of Brazos Safety Systems. "With Altaline's support and strategic guidance, we are well-positioned to accelerate innovation, enhance our solutions, and deliver even greater value to our customers as we continue our mission to improve flight safety worldwide." "Brazos has all of the attributes we look for at Altaline, including a data-rich and mission-critical solution, strong client momentum, a leading position in its market segment of focus and strong customer loyalty and satisfaction," added Rafael Telahun, Managing Director at Altaline. "We look forward to collaborating with the Brazos team to expand on the Company's mission to leverage technology to improve flight safety globally." BakerHostetler, Elliott Davis LLC and Payne Enterprises LLC acted as legal, financial and commercial advisors to Altaline, respectively. AvStrategies LLC served as exclusive financial advisor while Cole Bryan PC served as legal advisor to Brazos. About Altaline Altaline is a Los Angeles-based private equity firm focused on buyouts and growth investments in lower middle-market companies across the technology, business services and financial services sectors in the U.S. and Canada. Founded by former professionals from TA Associates, H.I.G. Capital and KKR, the firm combines deep-sector expertise with an operationally oriented approach to support transformational growth and value creation. Learn more about Altaline at About Brazos Safety Systems Brazos Safety Systems, based in Fort Worth, Texas, is a leader in aviation safety technology and analytics, specializing in data-driven insights and analytics that enhance flight safety. The Company provides market leading Flight Data Monitoring (FDM) and Flight Operations Quality Assurance (FOQA) solutions for rotorcraft and fixed-wing operators worldwide. Learn more about Brazos at View source version on Contacts Media Contacts: Altaline Dylan McElligottmedia@ Brazos Safety Systems Kendall Sellersksellers@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
- Yahoo
Data & Business Process Services Q1 Earnings: CSG (NASDAQ:CSGS) is the Best in the Biz
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how CSG (NASDAQ:CSGS) and the rest of the data & business process services stocks fared in Q1. A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area. The 11 data & business process services stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.3% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results. Powering billions of critical customer interactions annually, CSG Systems (NASDAQ:CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services. CSG reported revenues of $299.5 million, up 1.5% year on year. This print exceeded analysts' expectations by 1.4%. Overall, it was an exceptional quarter for the company with full-year revenue guidance exceeding analysts' expectations and a solid beat of analysts' EPS estimates. 'Team CSG's strong first quarter results enabled us to raise our 2025 non-GAAP profitability and EPS guidance targets. We grew revenue nicely at customers outside of communication service providers ('CSPs') with a third of our revenue now coming from big, faster growing industry verticals providing a buffer against today's macro-economic uncertainty.' said Brian Shepherd, President and Chief Executive Officer of CSG. CSG achieved the highest full-year guidance raise but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 3.9% since reporting and currently trades at $63.73. Is now the time to buy CSG? Access our full analysis of the earnings results here, it's free. Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE:PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change. Planet Labs reported revenues of $66.27 million, up 9.6% year on year, outperforming analysts' expectations by 6.5%. The business had a very strong quarter with an impressive beat of analysts' EPS estimates and full-year revenue guidance slightly topping analysts' expectations. Planet Labs pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 36.2% since reporting. It currently trades at $5.46. Is now the time to buy Planet Labs? Access our full analysis of the earnings results here, it's free. Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies. Broadridge reported revenues of $1.81 billion, up 4.9% year on year, falling short of analysts' expectations by 2.5%. It was a slower quarter, leaving some shareholders looking for more. Broadridge delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.6% since the results and currently trades at $238.16. Read our full analysis of Broadridge's results here. With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K. CoStar reported revenues of $732.2 million, up 11.5% year on year. This number met analysts' expectations. It was a strong quarter as it also produced an impressive beat of analysts' EPS estimates and revenue guidance for next quarter meeting analysts' expectations. CoStar had the weakest full-year guidance update among its peers. The stock is down 2.2% since reporting and currently trades at $80.76. Read our full, actionable report on CoStar here, it's free. Known for its proprietary D-U-N-S Number that serves as a unique identifier for businesses worldwide, Dun & Bradstreet (NYSE:DNB) provides business decisioning data and analytics that help companies evaluate credit risks, verify suppliers, enhance sales productivity, and gain market visibility. Dun & Bradstreet reported revenues of $579.8 million, up 2.7% year on year. This result was in line with analysts' expectations. Overall, it was a strong quarter as it also recorded a decent beat of analysts' EPS estimates. The stock is up 1.2% since reporting and currently trades at $9.07. Read our full, actionable report on Dun & Bradstreet here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
25-06-2025
- Business
- Yahoo
Data & Business Process Services Stocks Q1 In Review: CoStar (NASDAQ:CSGP) Vs Peers
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how data & business process services stocks fared in Q1, starting with CoStar (NASDAQ:CSGP). A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area. The 11 data & business process services stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.3% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 9.1% on average since the latest earnings results. With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K. CoStar reported revenues of $732.2 million, up 11.5% year on year. This print was in line with analysts' expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts' EPS estimates and revenue guidance for next quarter meeting analysts' expectations. CoStar delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 1.9% since reporting and currently trades at $81. Is now the time to buy CoStar? Access our full analysis of the earnings results here, it's free. Powering billions of critical customer interactions annually, CSG Systems (NASDAQ:CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services. CSG reported revenues of $299.5 million, up 1.5% year on year, outperforming analysts' expectations by 1.4%. The business had an exceptional quarter with full-year revenue guidance exceeding analysts' expectations and a solid beat of analysts' EPS estimates. CSG scored the highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 4.4% since reporting. It currently trades at $64. Is now the time to buy CSG? Access our full analysis of the earnings results here, it's free. Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies. Broadridge reported revenues of $1.81 billion, up 4.9% year on year, falling short of analysts' expectations by 2.5%. It was a slower quarter, leaving some shareholders looking for more. Broadridge delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $241.80. Read our full analysis of Broadridge's results here. Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions. Verisk reported revenues of $753 million, up 7% year on year. This print was in line with analysts' expectations. More broadly, it was a mixed quarter as it also recorded a narrow beat of analysts' constant currency revenue estimates but a slight miss of analysts' full-year EPS guidance estimates. The stock is up 9.9% since reporting and currently trades at $325.42. Read our full, actionable report on Verisk here, it's free. Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE:PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change. Planet Labs reported revenues of $66.27 million, up 9.6% year on year. This result beat analysts' expectations by 6.5%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts' EPS estimates and full-year revenue guidance slightly topping analysts' expectations. Planet Labs achieved the biggest analyst estimates beat among its peers. The stock is up 38.4% since reporting and currently trades at $5.55. Read our full, actionable report on Planet Labs here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. 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Yahoo
10-06-2025
- Business
- Yahoo
Should You Buy BigBear.ai Stock Today?
offers cutting-edge artificial intelligence, machine learning, and computer vision solutions that enhance organizations' decision-making processes. The company is targeting an international expansion while leveraging its national security expertise into new enterprise AI applications. Mixed financial trends, including a muted growth outlook, may keep shares volatile. 10 stocks we like better than › Advances in artificial intelligence (AI) are rapidly transforming the global economy by automating complex workflows and delivering predictive insights that unlock unprecedented levels of productivity. (NYSE: BBAI) is a prime example of an emerging leader in the field that deserves a closer look by investors. The technology sector small-cap is developing AI-powered decision intelligence solutions positioned to capitalize on a significant long-term growth opportunity. Does a promising outlook for make its stock a good buy for your portfolio today? Here's what you need to know. While most companies are rushing to add artificial intelligence features to their existing product offerings, stands out as a pure play on the transformative technology at the core of its data analytics platform. The company has carved out a niche specializing in operationalizing AI and machine learning capabilities for mission-critical intelligence and national defense applications. Through high-profile clients such as the U.S. Department of Homeland Security and the U.S. Army, has gained credibility as a defense tech innovator in areas like autonomous systems, cybersecurity, and intelligent supply chain management. Perhaps even more exciting are the ongoing efforts to leverage this expertise in enterprise AI and the private sector as a new growth driver. Within digital identity services, several airlines and airports worldwide already rely on its Vision AI technology, which combines real-time images with actionable insights. Products include "TrueFace" and "veriScan" verification systems that streamline the passenger screening process. The potential of vision AI extends beyond airports, with applications in supply chain logistics for warehouse inventory management and cargo inspection. Ultimately, is positioning itself to capture growing AI demand across multiple industries. Despite the commercial momentum, financial results at the start of 2025 have been muted. The company reported first-quarter revenue of $34.8 million, a 5% year-over-year increase for the period ended March 31, reflecting new Department of Homeland Security contracts and wins in the Digital Identity business. This growth was offset by delays in government program funding for other initiatives. Increased spending, including on research and development efforts, led to an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $7 million, widening from a $1.6 million loss in the prior-year quarter. Management is projecting optimism in its outlook, citing "encouraging signs" that the strategic focus is resonating with customers. Favorably, its current order backlog of $385 million is up 30% from $296 million at the end of Q1 2024, suggesting room for stronger growth. is guiding for full-year revenue between $160 million and $180 million, at the midpoint, representing an 8% increase from 2024. The company also expects its recurring loss to narrow, targeting 2025 adjusted EBITDA in the "negative single-digit millions." There's a lot to like about as it moves to expand into new industry verticals and enter international markets. Yet, it's important to recognize that the stock remains a speculative investment, given the company's high price-to-sales (P/S) ratio, lack of profitability, and long-term uncertainties. Shares are down 63% from their 52-week high, underscoring underlying market skepticism regarding the company's potential. First, will face intense competition from larger tech rivals pursuing many of the same market opportunities. Companies like Palantir Technologies, defense industry consultant Booz Allen Hamilton, and even cybersecurity giants have greater financial resources and pose challenges in both defense and commercial AI applications. Second, it's unclear whether proprietary technology can maintain its innovative edge. Furthermore, while modest growth outlook is a step in the right direction, the market will likely want to see evidence of accelerating trends to drive the stock price higher. The possibility that results disappoint and that any timetable for generating consistent profitability gets pushed out would likely keep the stock volatile -- a risk for investors to balance. The next several quarters will be pivotal for to demonstrate its commercial traction and the success of its growth initiatives. Without a major catalyst on the horizon, I believe the prudent move for investors is to adopt a wait-and-see approach before buying the stock. Ultimately, there may be more compelling AI stocks with a better combination of growth and value available elsewhere. Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Booz Allen Hamilton. The Motley Fool has a disclosure policy. Should You Buy Stock Today? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
