Top 10 AI News Stories For The Weekend

6. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 56

Shopify Inc. (NYSE:SHOP) is a subscription-based software-as-a-service (SaaS) platform that integrates artificial intelligence through tools like Shopify Magic, automating tasks and enhancing personalized shopping experiences for merchants. An underrated AI play, one Wall Street analyst recently stated that the company is winning with artificial intelligence. On December 6, Loop Capital analyst Anthony Chukumba upgraded Shopify to “Buy” from Hold and increased the price target to $140 from $110.

According to the analyst, investors are underestimating Shopify’s use of artificial intelligence in serving merchants. From personalized response recommendations to instantly generated emails and even internally using it in areas such as customer support, sales, and human resources, Shopify is doing so much with AI. This is why the firm considers AI as a key driver of margin expansion and long-term growth for the company.

“Thus, we believe Shopify will be able to grow its revenue at a much faster rate than its operating expenses for the foreseeable future, which will result in operating and free cash flow margin expansion and a higher valuation”.

-Loop Capital analyst Anthony Chukumba