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munKNEE.com tracks the stock performances of 101 artificial intelligence and related (AI&R) companies on a daily basis highlighting such information in a number of exclusive articles each week for TalkMarkets. This article focuses on the performances of the 11 such stocks that are still very much in bubble mode (i.e. above 100% YTD) as compared to the performance of the Global X Artificial Intelligence and Technology ETF (AIQ) of 91 AI&R constituents which is only up 30% YTD.To help ascertain which, if any, of these 11 stocks are possibly undervalued (or, at least, fairly valued, relatively speaking) to each other, each stock’s forward-price-to-sales ratio (PSR), enterprise value-to-earnings before interest, taxes, depreciation and amortization (EV/EBITDA) ratio and price earnings-to expected 12-month growth (PEG) ratio is provided. A definition of each ratio is at the end of the article.
Stock Performances MTD and YTD
The above information along with each company’s current market capitalization is provided below in descending order as to its stock performance month-to-date (MTD) as well as its price change YTD.
- Market Capitalization: $22B
- PSR: 2.8 (marginally above sector mean of 2.3)
- EV/EBITDA ratio: Negative
- PEG ratio: No earnings
- Market Capitalization: $3B
- PSR: 9.7 (much higher than sector mean)
- EV/EBITDA ratio: Negative
- PEG ratio: No earnings
- Market Capitalization: $185 million
- PSR: 4.5 (higher than sector mean)
- EV/EBITDA ratio: Negative
- PEG ratio: No earnings
- Market Capitalization: $741B
- PSR: 5.6 (higher than sector mean)
- EV/EBITDA ratio: 10.0 (better than sector mean of 12.9)
- PEG ratio: 1.0 (better than sector mean of 1.6)
- Market Capitalization: $33B
- PSR: 14.9 (much above sector mean)
- EV/EBITDA ratio: 49.4 (much higher than sector mean)
- PEG ratio: 1.0 (lower than sector mean)
- Market Capitalization: $1.0T
- PSR: 18.4 (much above sector mean)
- EV/EBITDA ratio: 36.7 (much higher than sector mean)
- PEG ratio: 1.1 (lower than sector mean)
- Market Capitalization: $13B
- PSR: 1.3 (much better than sector mean)
- EV/EBITDA ratio: 11.1 (better than sector mean)
- PEG ratio: 0.7 (much lower than sector mean)
- Market Capitalization: $2B
- PSR: 105.0 (much above sector mean)
- EV/EBITDA ratio: Negative
- PEG ratio: No earnings
- Market Capitalization: $191 million
- PSR: 2.5 (marginally higher than sector mean)
- EV/EBITDA ratio: Negative
- PEG ratio: No earnings
- Market Capitalization: $538M
- PSR: 15.5 (much above sector mean)
- EV/EBITDA ratio: Negative
- PEG ratio: No earnings
- Market Capitalization: $505 million
- PSR: 1.4 (much lower than sector mean)
- EV/EBITDA ratio: Negative
- PEG ratio: No earnings
Stock Performance Summary
The average MTD price change of the above 11 stocks is a decrease of 7.6% and they are now “only” up 164.9% YTD.
Valuation Metric Assessment
Of the three (3) valuation metrics considered only Super Micro Computer (SCMI) and Applied Digital Corporation (APLD) have scores that indicate that, even with their considerable price appreciations YTD, they could be undervalued and could have more room to run (please note that this is not a recommendation on my part – do your own due diligence). Meta Platforms (META) scores well on 2 of the 3 metrics so it is open to consideration while the remaining 8 have valuation scores well in excess of the mean scores for each metric.
Definitions
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