In this article, we discuss the 5 best artificial intelligence stocks to invest in that are under $10. If you want to see more stocks in this selection as well as get some insight into the market, click 10 Artificial Intelligence Stocks Under $10.
5. Rekor Systems, Inc. (NASDAQ:REKR)
Share Price as of July 5: $1.85
Number Of Hedge Fund Holders: 5
Rekor Systems, Inc. (NASDAQ:REKR), through its subsidiaries, develops and implements transformative mission-critical intelligent infrastructure solutions and services for transportation management, public safety, and commercial markets in the United States, Canada, and internationally. The company makes use of its Rekor One platform, an AI-driven intelligence platform, to enhance public safety while providing traffic analytics.
This May, B. Riley analyst Zach Cummins lowered the price target on Rekor Systems, Inc. (NASDAQ:REKR) to $7 from $12 but kept a Buy rating on the shares post the Q1 results. The analyst says that although the recurring revenue transition has weighed on near-term revenue and margins, he still anticipates revenue growth will accelerate, with improving margins in the second half of 2022.
On June 21, Rekor Systems, Inc. (NASDAQ:REKR) announced that it has closed its acquisition of Southern Traffic Services. The acquisition is valued at up to $14.5 million, including earnouts, the final amount of which will be based on the achievement of certain performance metrics. Southern Traffic Services will operate as a business unit within Rekor Systems, Inc. (NASDAQ:REKR) and is expected to generate $15 million of revenue for the fiscal year 2022.
As of the end of the first quarter, 5 hedge funds in Insider Monkey’s database held stakes in Rekor Systems, Inc. (NASDAQ:REKR), the same as the preceding quarter. The total value of the stakes held for the quarter amounted to over $22.57 million.
4. Opera Limited (NASDAQ:OPRA)
Share Price as of July 5: 4.80
Number Of Hedge Fund Holders: 5
Opera Limited (NASDAQ:OPRA) is a Norwegian multinational technology company that operates as one of the world’s leading browser providers and an influential player in the field of integrated AI-driven digital content discovery and recommendation platforms. The company’s total user base, including users of its desktop browsers, mobile browsers and other services exceeds 380 million monthly active users.
Earlier this April, Cowen analyst Lance Vitanza lowered the price target on Opera Limited (NASDAQ:OPRA) to $15 from $18.50 and maintained an Outperform rating on the shares. The analyst said his target reduction reflects marking non-core assets to market, stating that despite trimming his estimates to reflect the Russia/Ukraine war, he sees no impairment to the business and expects the damage to be contained with a quick recovery once the conflict has ended. Opera Limited (NASDAQ:OPRA) also announced a partnership with GameAddik, the game technology subsidiary of ESE Entertainment. The agreement focuses on providing advertising services in connection with the promotion of Opera GX, Opera’s gamer-oriented browser.
By the end of Q1 2022, 5 hedge funds were bullish on Opera Limited (NASDAQ:OPRA), having collective stakes of more than $19.95 million in the growing software company. Among these, Joe Milano’s Greenhouse Funds ranks as the company’s biggest shareholder, with stakes valued at $11.47 million.
3. Veritone, Inc. (NASDAQ:VERI)
Share Price as of July 5: $6.98
Number Of Hedge Fund Holders: 9
Veritone, Inc. (NASDAQ:VERI) is a leading provider of artificial intelligence technology and solutions. The company’s proprietary operating system, aiWARE, orchestrates an expanding ecosystem of machine learning models to transform audio, video and other data sources into actionable intelligence.
Earlier this April, UBS analyst Karl Keirstead initiated coverage of Veritone, Inc. (NASDAQ:VERI) with a Neutral rating and $18 price target ahead of its Q1 results. Based on the analyst’s remarks, the stock’s 2022 expected revenue multiple of 3.6-times appears “attractive” given its 25% expected growth rate, but there are risks related to the Amazon customer concentration.
Veritone, Inc. (NASDAQ:VERI) has a market cap of $251.75 million, and its revenue in the first quarter of 2022 came in at $34.41 million. There were 9 hedge funds that reported owning stakes in Veritone, Inc. (NASDAQ:VERI) at the end of the first quarter. The total value of these stakes at the end of Q1 is $24.18 million. Israel Englander’s Millennium Management is one of the firm’s most prominent shareholders.
2. Vivint Smart Home, Inc. (NASDAQ:VVNT)
Share Price as of July 5: $3.69
Number Of Hedge Fund Holders: 13
Vivint Smart Home, Inc. (NASDAQ:VVNT) is a public smart home company that offers an integrated system with in-home consultation, professional installation, and support for houses. The company provides a number of AI-powered devices, ranging from home security to temperature control.
On June 13, JPMorgan analyst Paul Chung lowered his price target on Vivint Smart Home, Inc. (NASDAQ:VVNT) to $10 from $11 and maintained an Overweight rating on the shares following a model update.
This May, Vivint Smart Home, Inc. (NASDAQ:VVNT) announced a suite of new products that will further enhance the company’s unique smart home experience and provide intelligent new solutions, including an all-new Doorbell Camera Pro, Outdoor Camera Pro, Spotlight Pro, and Indoor Camera Pro. Each new product seamlessly ties into the company’s unique smart home solution, connected by the company’s proprietary AI platform and rich, first-party data environment.
According to Insider Monkey’s Q1 2022 database, 13 hedge funds held stakes worth $18.09 million in Vivint Smart Home, Inc. (NASDAQ:VVNT). This is compared to 11 funds that owned positions in the company in the previous quarter. Fortress Investment Group was the biggest shareholder of Vivint Smart Home, Inc. (NASDAQ:VVNT) at the end of the first quarter, with a stake worth $170 million.
1. Yext, Inc. (NYSE:YEXT)
Share Price as of July 5: $4.98
Number Of Hedge Fund Holders: 25
Yext, Inc. (NYSE:YEXT) is a New York-based technology company operating in the area of online brand management. It offers brand updates using its AI-powered network of apps, search engines and other facilities. The company serves thousands of brands across the sectors of healthcare, retail, food service, financial, consumer packaged goods, and direct-to-consumer.
On June 16, Yext, Inc. (NYSE:YEXT) announced a partnership with Snowflake, Inc. (NYSE:SNOW), a data cloud company, to further improve the analytics functionality of its platform. Yext analytics, powered by Snowflake, aims to allow customers to optimize their digital experiences with insights from search queries, reviews, and other forms of online engagement.
At the end of the first quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $151.75 million in Yext, Inc. (NYSE:YEXT), up from 22 the preceding quarter worth $44 million. Out of the hedge funds being tracked by Insider Monkey, Mitchell Green’s Lead Edge Capital is a leading shareholder in Yext, Inc. (NYSE:YEXT) with over 6.97 million shares worth more than $48.05 million.
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