DYOR (really do your own research).
Personally I like SOUN. They have an AI API that they provide to developers so that people can easily integrate AI into their own products and systems.
Price currently at about $1.81 and new broker has commenced coverage with a price target of $5. Consensus price target is $5.3 with 5 analysts covering the company all with BUY ratings
Benzinga says that SOUN has 16.6% short positions. It’s up pre-market so could there be a short squeeze coming?
I have followed Presto Automation PRST and generally like the company. My view so far has been positive. The company provides the hardware and software for restaurant drive thru’ and uses AI to take the orders. A few days ago they announced that one restaurant chain who had been doing a trial of the tech at two restaurants will now install it at all of their restaurants. Since the tech includes the actual drive thru hardware I imagine that installation locks a restaurant into the company and tech for the long term. The board of directors includes a couple of venture capitalists and a former CFO of McDonalds…
On Friday afternoon the share price collapsed. My guess is that it’s because the company filed a form saying that the year end results will be delayed by up to 2 weeks. Its the company’s first year trading as a listed company.
So either the company has dire news that’s leaked causing the share price to drop or the company is fine and they just didn’t get the accounts together in time and needed a few more days (they were planning to release the results this week so results literally delayed by a week or two). If the reason is the former the share price is going to be in for a rocky time. If its the latter than the drop is likely someone being anxious without info and the price may rebound to $3. If a company is late filing year end results it isn’t hard for the share price to drop significantly because the drop will trigger stop loses and fear that the drop may be because of dire info stops buying and brings on more selling. The investopedia article sums up the situation Why Do Companies Delay Earning Releases? (investopedia.com)
Thus a rather speculative opportunity. Price closed at $1.43 and was about $3 a week ago. A few days ago the company was announcing a major rollout of a deal and news has been consistently positive. If there is bad news who knows what will happen but a 50% drop on a company that’s been announcing positive news may be overdone even for bad news but if its just some nervous investors selling because of delayed results (but without knowledge of what’s happening) then the price could bounce back.
Personally I bought at $1.4 levels on the basis that short term its a highly speculative gamble and prefer it to the lottery but with money I can live without.
Pleased with these last couple of trades. SOUN went from $1.81 to $2.06 and has drop back and gone back up as well. I still like it long term with multiple analysts rating it as a buy with $5 price target. PRST went from $1.41 on Friday to currently $1.70 today but still a lot of distance to get back to either $2 or $3 with results now confirmed within the next 2 weeks. Very risky given that results were delayed but happy with the rise today and close to 20% profit on some of the Friday buys and I’ll hold long term subject to the results