10 Worst Artificial Intelligence Stocks to Buy Under $10

6) Sabre Corporation (NASDAQ:SABR)

Number of Hedge Fund Holders: 19

Share Price As On September 19: $3.26

Sabre Corporation (NASDAQ:SABR), together with its subsidiaries, operates as a software and technology company for the travel industry. Sabre Travel AI™, which has been developed in partnership with Google, introduces a new era of AI in travel technology.

Sabre Corporation (NASDAQ:SABR)’s revenue growth has been volatile in the past mainly because of market share growth, acquisitions, and the COVID-19 pandemic, with revenue significantly below its FY2019 levels. Apart from the concerns around revenues, its margins have been considerably below its historical levels, prompting the top management to raise debt. The company’s net interest expenses went up from $106.1 million in 2Q 2023 to $129.2 million in 2Q 2024. These risks, together with the uncertain economic conditions (primarily related to the travel industry), continue to pose challenges for its margin improvement.

On the other hand, market veterans believe that Sabre Corporation (NASDAQ:SABR) should be supported by its strong competitive position. The company’s product offerings and market position help create a network effect, with a more active marketplace encouraging new entrants, and the capability to get more value from each booking. Sabre Corporation (NASDAQ:SABR) highlighted the potential of SabreMosaic, which can transform the broader airline IT business into a growth sector over the medium to long term. Also, the company does not anticipate a near-term significant financial impact.

Sabre Corporation (NASDAQ:SABR)’s competitive edge in air distribution bookings and its momentum in the Hospitality Solutions business should continue to act as tailwinds. The company has been gaining market share in air distribution bookings and appears to be well-positioned for corporate travel growth.

As per Wall Street analysts, the shares of Sabre Corporation (NASDAQ:SABR) have an average price target of $3.75. By the end of the second quarter, 19 hedge funds had invested in  Sabre Corporation (NASDAQ:SABR).