AI Investing Made Easy: Explore Hidden Gems in HubSpot and MongoDB for Profits
|Image by PX
When we reflect on the year 2023, it could be seen as a pivotal moment for artificial intelligence (AI). Exciting advancements in large language models, like OpenAI’s ChatGPT, have paved the way for a new era of technology. But this is just the beginning. The incredible capabilities of these AI systems have sparked the imagination of business leaders, who are eagerly exploring ways to leverage this groundbreaking technology. They see the potential to automate repetitive tasks, enhance customer service, and unlock new opportunities.
The AI revolution has caught the attention of investors everywhere. They are actively seeking ways to capitalize on the immense possibilities offered by this cutting-edge technology. Predictions about the future market size of AI software vary, but one particularly optimistic forecast from Cathie Wood’s Ark Investment Management suggests that the global AI software market could grow at an annual rate of 42%, reaching over $14 trillion by 2030. Even if this estimate turns out to be on the high end, it underscores the tremendous growth potential of AI-enabled software in the years ahead.
Now, let’s focus on two exceptional stocks that are poised to thrive in this AI revolution.
HubSpot is a company that found success by doing things differently in the world of advertising. Instead of using old-fashioned methods, they focused on building relationships with potential customers through interesting online content, social media, and blog posts.
As HubSpot grew, they expanded their services to help businesses manage their relationships with customers. They developed tools for the marketing, sales, customer service, content management, and operations teams. These tools help with important tasks like handling data, making sales, generating reports, automating tasks, creating content, sending messages, and processing payments.
The CEO of HubSpot, Yamini Rangan, explained why artificial intelligence (AI) is crucial for the company and its customers. She said that HubSpot is a powerful platform for managing customer relationships, and it uses AI in an easy-to-understand way. HubSpot is integrating AI into all its services, and what makes them stand out is their “unique data and broad distribution.” Rangan also highlighted that HubSpot’s CRM data is well-organized and connected, which makes it easier for AI to provide relevant information. Importantly, she emphasized that customers don’t need to be AI experts to benefit from HubSpot’s improvements.
HubSpot’s financial results for the first quarter show promise. Despite a challenging economy, their revenue increased by 27% compared to the previous year, and their earnings per share more than doubled. They gained many new customers, and a significant portion of their revenue comes from existing customers who use multiple services.
The stock price of HubSpot may seem expensive when compared to traditional measures, as it is valued at 10 times next year’s sales. However, the company has experienced remarkable growth in a relatively short time. In less than nine years, the stock price has increased by over 1,600%. Given their history of strong growth, the valuation seems more reasonable.
HubSpot’s innovative approach to advertising and their dedication to helping businesses manage customer relationships have paid off. Their financial success, along with their expanding customer base, demonstrates the value they provide to businesses. Despite the seemingly high stock price, HubSpot’s track record suggests that their growth potential makes the investment worthwhile.
MongoDB had an amazing first quarter in fiscal year 2024, and the numbers speak for themselves. Their revenue reached a remarkable $368 million, growing by 29% compared to the previous year. Even in the face of economic challenges, they managed to achieve such impressive growth. Not only that, but their adjusted earnings per share rose by a whopping 180%, reaching $0.56. This outstanding performance was fueled by the highest number of new customers they’ve gained in over two years. The star of the show was Atlas, MongoDB’s fully managed platform for databases. Atlas experienced an incredible 40% growth, now contributing 65% to MongoDB’s overall revenue.
Some may worry about the stock price being expensive, valued at 14 times next year’s sales. However, let’s put things into perspective. Over a period of just a little over five years, MongoDB’s stock has surged by more than 1,000%. Even after facing some downturns, it has shown remarkable resilience. This history of tremendous growth makes MongoDB’s valuation far more reasonable and promising.
In today’s world, as more and more customers look for platforms that can handle the demands of building and running AI applications, MongoDB’s Atlas emerges as the top choice. While most databases are limited to handling basic information like rows and columns, MongoDB’s Atlas takes it to the next level. It can handle a wide range of data types, including video and audio files, social media posts, and even entire documents. This flexibility empowers developers to create robust and flexible software applications.
CEO Dev Ittycheria recognizes the significance of the AI revolution for MongoDB. He believes that the recent breakthroughs in AI represent the future of software development. Embedding AI into applications requires advanced capabilities, and MongoDB is well-equipped to provide that. Ittycheria is confident that MongoDB is perfectly positioned to benefit from the upcoming wave of AI applications, enabling developers to gain a competitive advantage and drive innovation.
MongoDB’s exceptional performance in the first quarter of fiscal year 2024 showcases their resilience and unwavering commitment to growth. Their revenue surged, their customer base expanded, and Atlas shined as the key driver behind their success. So, as the demand for platforms that can empower AI applications continues to rise, MongoDB’s Atlas stands tall as the go-to choice. It’s time to join the MongoDB revolution and unleash the true potential of your software applications.