We recently published a list of 7 Best Marketing Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Hubspot, Inc. (NYSE:HUBS) stands against other best marketing stocks to buy.
Artificial intelligence has seeped into nearly every industry. AI in marketing is not a new concept and has been here for a while, however, it is constantly evolving and innovating. AI in marketing not only covers planning, execution, and optimization, but now it also possesses strong generative capabilities. Marketing managers are now more focused on developing comprehensive AI marketing strategies rather than traditional marketing plans.
Some of the Most Revolutionary AI Marketing Companies
Albert AI by Zoomd, Cognitiv, and Singulate are some of the most innovative AI marketing companies. These companies have technological prowess and marketing expertise that meet even the smallest needs of marketers and advertisers. Let’s take a look at their offerings.
Albert AI by Zoomd is one of the most revolutionary AI marketing companies. The marketing company is one of the few completely autonomous platforms that is self-optimizing, holistic, agile, and speedy. The platform can create plans or ads, group keywords, build campaigns, group ads, identify customers, budget, schedule, create bids, develop detailed reports, and deliver crucial insights. Most companies plan and execute manually, and let AI take care of measurement and campaign execution. Albert AI, on the other hand, takes care of everything from planning to execution and measurement.
Cognitiv is another artificial intelligence marketing company that specializes in adaptive algorithmic advertising. Its products include its demand-side platform (DSP), Curation solution, and Context GPT. DSP is an AI platform that provides custom deep learning algorithms, cross-device graphs, deep learning CTV, dynamic user profiles, advanced understanding of context, and business outcome-focused KPIs. Its Curation solution is focused on eliminating static lookalike audiences and Context GPT, on the other hand, allows users to develop custom prompts relevant to their brand and is designed to offer real-time contextual insights for advertising.
Singulate is a prominent generative AI platform used by more than 850 marketers. The company strives to solve a major problem concerning the marketing industry. Marketers tend to own large amounts of data but fail to understand what to do with it. Singulate bridges the gap allowing marketers to segment audiences and personalize content at scale. Marketing messages crafted by Singulate receive a 5x to 10x increase in response rates. On October 8, the company announced that it had raised $2.3 million in a pre-seed round of funding from angel investors and venture capitalists.
While startups are emerging as revolutionary names in marketing, some companies have a historic standing, putting them ahead of others.
Our Methodology
For this article, we sifted through ETFs, the Yahoo Finance stock screener, the Finviz stock screener, our rankings, and similar rankings on the internet. We then examined the hedge fund sentiment as of Q2 2024 for each stock and picked the most popular ones. The best marketing stocks to buy according to hedge funds are in ascending order of the number of hedge fund holders, as of Q2 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of software developers gathered around a monitor discussing a new CRM platform.
Hubspot, Inc. (NYSE:HUBS)
Number of Hedge Fund Holders: 80
Hubspot, Inc. (NYSE:HUBS) ranks first on our list of the best marketing stocks to buy now. The marketing company develops and offers software products for inbound marketing, customer services, SEO, and sales, for businesses of all sizes.
Hubspot, Inc. (NYSE:HUBS) serves over 228,000 customers in over 135 countries. As of Q2 2024, the company grew its customers by 23% and revenue by 20%. The company is focused on providing premium marketing and CRM services to small and medium-sized businesses. Hubspot has been striving to provide a complete suite of products to customers rather than stand-alone products, and it would not be an exaggeration to say that it has been quite successful in doing that.
The company is now home to several suites of products including the marketing hub, the sales hub, the service hub, the content hub, the operations hub, and the commerce hub. Hubspot, Inc. (NYSE:HUBS) was one of the first companies to integrate artificial intelligence into its product offerings. The marketing giant has been launching new AI tools rapidly and in September, Hubspot, Inc. (NYSE:HUBS) added another name to its family. On September 18, the company launched Breeze, a new embedded tool focused on data enrichment.
Overall, Hubspot, Inc. (NYSE:HUBS) was one of the first companies to provide a complete suite of marketing solutions to customers and is one of the first companies in the industry to pour capital into AI. This puts the company at an advantage, explaining why 80 hedge funds were bullish on the stock at the close of Q2 2024.
Artisan Partners’ Artisan Mid Cap Fund stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its Q3 2024 investor letter:
“Along with Dexcom and Celsius, a notable trim in the quarter was HubSpot, Inc. (NYSE:HUBS). HubSpot is a leading cloud-based customer relationship management software provider for small-to-medium businesses. The stock was a top performer in 2023 as it meaningfully improved its profitability after several years of heavy investment. However, as we mentioned earlier in this letter, the environment for cloud software providers has been challenging in 2024 as macroeconomic pressures have impacted customer spending. Our long-term conviction remains intact, but we reduced the position due to near-term uncertainty. Meanwhile, we are encouraged by the company’s efforts to leverage AI advances to help internally (e.g., more efficient software development) and externally (e.g., new agent-based apps to help customers extract more value out of its products).”
Overall, HUBS ranks 1st on our list of best marketing stocks to buy according to hedge funds. While we acknowledge the potential of marketing companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HUBS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
