10 Worst AI Stocks to Buy According to Reddit

2. Rekor Systems Inc. (NASDAQ:REKR)

Short % of Shares Outstanding As of August 30: 17.49%

Number of Hedge Fund Holders: 9

Rekor Systems Inc. (NASDAQ:REKR) provides infrastructure solutions for transportation, public safety, and urban mobility markets globally through AI-powered software, which uses advanced AI algorithms to analyze video data from cameras, enabling real-time traffic monitoring, vehicle identification, and incident detection.

Its flagship product is Rekor Command, a cloud-based platform. Rekor Command reduced secondary crashes by 29% and improved incident resolution times by 44 minutes in Q2. Rekor Systems was recognized by ITS Americas as a leader in AI for digital infrastructure and transportation. Another product, Rekor One, is an AI-powered roadway intelligence platform.

Recently, the company secured a $1.5 million contract with Maryland DOT to deploy Discover across major corridors. It also expanded into Colorado’s Pitkin County and secured over $15 million in new contracts, expanding its reach to Ohio and Texas. Additionally, Rekor Command has expanded to Oklahoma, Kansas, and Oregon.

The company is a rapidly growing enterprise in the Baltimore area and has recently been granted several new technology patents, highlighting its dedication to developing AI-powered insights.

In Q2 2024, its revenue grew 45.12% year-over-year, with a 27% sequential rise driven by the mentioned increased contracts, expansion of services, and strategic financing. It has announced plans to deploy up to 1,000 Discover and Edge units in one of the largest US states, with an estimated potential revenue of $35 million.

The company faces liquidity challenges and relies on external financing, but analysts are optimistic about its future. Strategic partnerships and technology advancements could lead to profitability by 2024 or early 2025, as the company plans to expand its market presence and generate significant cash flows in the transportation infrastructure sector.