#8 - Netflix (NASDAQ:NFLX)
Netflix (NASDAQ: NFLX) may seem like an odd entry into this category. But the company has been a coronavirus winner and with many customers now breathlessly waiting for Season 4 of Ozark, it appears rumors of the company’s demise were unfounded.
And of course the company uses AI to make those oh-so-targeted “suggestions” of what to watch next. Its personalized content that provides the curated experience that is extremely popular to its core audience.
But the company is using AI for more than just a parlor trick. They are also using their learnings to decide on where to shoot a movie. This is extremely important for a company like Netflix which has always relied on its original content, but will become even more reliant on it as other companies enter the streaming wars.
NFLX stock is up nearly 45% for the year. While the stock is slightly above its consensus price target, the company just received a higher price target from Canaccord Genuity of $550.
About Netflix
Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
Read More - Current Price
- $896.05
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 24 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $764.82 (14.6% Downside)
As you’ve noticed, there are very few pure-play artificial intelligence companies. And you have to be careful. Like the cannabis boom of the 1980s, some companies are much more involved with artificial intelligence than others.
Artificial intelligence is not science fiction. It's proven science that is propelling many businesses forward. But the opportunity for investors is only beginning. As much as it may seem, AI has become a ubiquitous part of our life. It’s really only in the early innings.
And just as AI applications will continue to expand, so will the profit potential for this sector. In fact, analysts from Omdia/Tractica project the total market for AI stocks to grow from $10.1 billion in 2018 to $126 billion by 2025.
Just like cannabis stocks, there is bound to be some consolidation in this sector. Investors will be wise to stick with quality stocks like the ones in this presentation. These are the companies that are likely to be around to be part of the present and the future of this exciting and expanding industry.
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