IMPORTANT POINTS:
- Cathie Wood, founder of ARK Investment, believes that software vendors are the next beneficiaries of the AI race.
- Wood identifies Twilio, Teladoc, and UiPath as companies well-positioned to benefit from AI.
- All three companies have recently beaten revenue and EPS forecasts, showing strong performance.
Cathie Wood, the founder of ARK Investment Management in 2014, is an important figure to watch in the AI race. She named her signature “ARK” for its acronym in English for Active Research Knowledge, also referring to the Ark of the Covenant, given her Christian devotion.
Wood launched his ETF, ARK Innovation (NYSE:ARKK), which invests in disruptive innovation companies in developed and emerging markets. This fund has been popular with investors and has generated strong returns in its early years.
Recently, however, Wood has made a bold move. He sold his stake in Nvidia, which was one of the flagship stocks in his fund. In October, he owned 750,000 shares, but by January, he had sold all of his shares. This change suggests that Wood is betting on other players in the field of artificial intelligence.
Wood believes that software vendors will be the next to benefit from the AI race, currently being driven by Nvidia. In particular, he cited UiPath (NYSE:PATH), Twilio (NYSE:TWLO), and Teladoc (NYSE:TDOC) as examples of software vendors well-positioned to benefit from AI. In fact, Wood’s funds hold shares in all three of these companies.
Twilio
Headquartered in San Francisco, California, Twilio offers communication tools that allow businesses to make and receive phone calls, send and receive text messages, and perform other communication functions through its web services API.
The company recently announced a partnership with Frame AI to harness artificial intelligence and improve customer engagement.
InvestingPro models give you a potential of $88.20.
The rally has been halted as it entered overbought territory and is now approaching early Fibonacci levels, which could potentially cause a bounce to the upside.
Teladoc Health
Teladoc is a US-based virtual healthcare and telemedicine company providing 24/7/365 access via phone and video consultations. Teladoc’s platform allows patients to connect with doctors and other healthcare providers remotely and has grown in popularity during the COVID-19 pandemic.
Deutsche Bank has set a $29 price target for this stock. On average, market consensus estimates a price target of around $30.
The current support level has proven to be resistant in the past, having been successfully defended in January, March, May, and now July.
UiPath
UiPath is a robotic process automation (RPA) software company founded in 2005 by Romanian entrepreneurs. In May 2023, UiPath delivered very positive results, beating both EPS and market revenue forecasts.
Wells Fargo recently gave you a $20 goal.
The stock has been rising steadily since November. However, in early June, it began to decline, reaching overbought levels. The fall stopped at the first Fibonacci level.
