We recently published a list of 10 AI News and Ratings That You Need To Take a Look At. In this article, we are going to take a look at where Rapid7, Inc. (NASDAQ:RPD) stands against other AI stocks.
As businesses invest heavily in artificial intelligence, many leaders remain skeptical about its impact on enterprise productivity. Despite advancements in generative AI, a significant gap exists between its potential and real-world implementation. May Habib, CEO of Writer, shared insights on why AI adoption has been slower than expected and how companies can bridge this divide to unlock its true value.
Habib discussed enterprise adoption of generative AI with Bloomberg’s Caroline Hyde, highlighting that many business leaders feel AI has not delivered expected productivity gains. A survey of Fortune 500 executives found that 71% were disappointed with their AI initiatives. Habib attributed this to outdated development approaches, where IT teams create solutions that fail to meet business needs. However, her firm, Writer emphasizes collaboration between IT and business units to build AI tools that integrate with enterprise workflows effectively.
She explained that AI models need more than just raw computing power; they must be combined with structured and unstructured data to function efficiently in enterprise settings. Unlike many AI firms focused on reasoning models, Writer prioritizes self-evolving models that update in real-time based on user feedback rather than requiring extensive retraining. She argued that this approach is essential for achieving advanced AI capabilities.
Habib also discussed workforce challenges and acknowledged that talent shortages persist, prompting Writer to expand internationally with new offices in London and Singapore. She also noted that the AI startup market is crowded, with many struggling to secure enterprise clients. Writer is exploring acquisitions to improve its platform by integrating innovative solutions from smaller firms.
For this article, 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 Q4 database of over 1000 hedge funds.
At Insider Monkey we are obsessed with 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A computer engineer analyzing a server network for cyber security threats.
Rapid7, Inc. (NASDAQ:RPD)
Number of Hedge Fund Holders: 45
Rapid7, Inc. (NASDAQ:RPD) provides cybersecurity software and services for threat detection, vulnerability management, and cloud security.
On March 17, Rapid7 (NASDAQ:RPD) announced its expansion in India with a new Global Capability Center (GCC) in Pune, set to open in April 2025. This hub will improve global security operations, develop cybersecurity talent, and drive AI collaborations. CEO Corey Thomas highlighted the move as a step toward delivering advanced, AI-driven cybersecurity solutions.
Rapid7’s Vice President of Global Government Affairs, Sabeen Malik, will join a panel at the Raisina Dialogue on digital security. In May, the company will host Security Day events in Mumbai, Delhi, and Bangalore to discuss cyber threats and AI-powered security advancements.
Overall, RPD ranks 5th on our list of AI news and ratings that you need to take a look at. While we acknowledge the potential of RPD 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 RPD 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.
