We recently compiled a list of the Top 8 Must-See AI News Updates Investors Should Not Miss. In this article, we are going to take a look at where Perion Network Ltd. (NASDAQ:PERI) stands against the other AI stocks.
On 17th February, xAI launched its updated Grok 3 AI model as part of efforts to stay at par with the evolving reasoning and search capabilities showcased by global competitor models. During an event live-streamed on X, xAI leaders claimed that the latest version of Grok 3 is better than Gemini, GPT-4o, Claude 3.5, and DeepSeek’s V3 models in terms of math, science, and coding benchmarks.
xAI also highlighted the tool’s latest features, which include advanced web searching with “deep search,” coding abilities for online games, and a “big brain” mode for complex problems. The xAI announcement comes as the global AI race heats up amid China’s advancements in this space.
While the cost-effective DeepSeek AI and the Qwen 2.5 models triggered a $1.3 trillion market rally in China, the mainland could witness further economic boost after recently announcing breakthroughs in quantum computing, focusing on quantum communications. However, analysts warn of data-driven surveillance and global data-centric authoritarianism in tandem with quantum advances.
“First, quantum computing is expected to eventually enable any state or non-state actor that possesses this technology to circumvent encryption that protects communications,” the analysts state. “Second, if the quantum communications providers who are first-movers in this space adopt cryptography standards and equipment that include backdoors for official government use, information conveyed over quantum networks will be vulnerable to state surveillance — potentially either by the governments that import these technologies, or by the home countries of companies that provide quantum services.”
We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
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 close-up of a busy web page, representing the creative platform solutions of the digital advertising solutions company.
Perion Network Ltd. (NASDAQ:PERI)
Number of Hedge Fund Holders: 21
Perion Network Ltd. (NASDAQ:PERI) offers data and AI-powered technologies through the Perion One platform to agencies, brands, and retailers to help them address the challenges of modern advertising and secure better results from their marketing investments across digital channels.
On February 19th, the company posted a 45% YoY drop in Q4 revenue to $129.6 million from $234.2 million due to muted revenue from the Advertising Solutions segment, as Open Web Video revenue fell 61% YoY. Meanwhile, Search Advertising revenue tanked by 78% YoY after previously announced changes implemented by Microsoft Bing in 2024. Despite a full-year 2024 drop in revenue and diluted EPS to $335.6 million and $1.27, respectively, the company set 2025 revenue guidance between $400 million and $420 million.
“Earlier this month, we announced our transformational ‘Perion One’ strategy and platform. This strategy will unify our brands and technologies into one advanced platform named ‘Perion One’, which will support our position as the partner of choice for brands, agencies, and retailers navigating the complexities of modern advertising. Perion One will harness advanced AI algorithms to help solve these challenges for our customers while aiming to optimize our cost structure and enhance our ability to scale in a more profitable way.”
-said Tal Jacobson, CEO of Perion Network Ltd.
Overall PERI ranks 5th on our list of the AI stocks investors should not miss. While we acknowledge the potential of PERI as an investment, 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 PERI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
