High-Growth AI Stocks HubSpot and MongoDB: Profit Opportunities in 2023
In 2023, the world witnessed a significant turning point in the realm of artificial intelligence (AI). Advancements in large language models fueled remarkable progress in generative AI, enabling these next-generation models to create original content autonomously. This breakthrough promises substantial productivity gains by automating repetitive tasks, allowing human employees to focus on higher-level functions.
The rapid adoption of AI has piqued the interest of investors seeking opportunities in this transformative technology. Various estimates abound, but one particularly optimistic projection from Cathie Wood’s Ark Investment Management suggests that the AI software market could potentially reach a staggering $14 trillion by 2030, assuming vendors capture just 10% of the value they create. Even if this projection proves somewhat ambitious, it underscores the potential for the AI market’s explosive growth in the coming years.
Two high-growth stocks poised to benefit from the AI boom
HubSpot (HUBS 0.42%) has made a name for itself by pioneering inbound marketing, which emphasizes building customer relationships through engaging online content, including social media and blog posts. Over time, HubSpot expanded its offerings to encompass a wide range of customer relationship management (CRM) functions, offering a comprehensive platform that includes marketing, sales, service, content management, operations, and more. Notably, HubSpot has integrated generative AI across its offerings, making it easier for users to harness the power of AI without requiring them to become AI experts. In the second quarter of the year, HubSpot reported robust results, with revenue reaching $529 million, a 25% year-over-year growth, and adjusted earnings per share (EPS) of $1.41, tripling over the same period. This growth was driven by a 23% increase in customer additions and strong relationships with existing customers.
MongoDB (MDB 0.64%) disrupted the traditional database model by offering the cloud-native Atlas platform, capable of handling diverse data types, including social media content, audio and video files, documents, and standard data. This flexibility empowers developers to create more versatile software and apps. MongoDB’s Q2 results were impressive, with revenue reaching $424 million, a 40% year-over-year increase, and adjusted EPS of $0.93, a remarkable 304% surge. The company also added 8,000 new customers in the past year, marking a 22% increase. Despite the stock appearing relatively expensive at 13 times next year’s sales, MongoDB has delivered exceptional returns, gaining over 1,300% since its public debut six years ago, surpassing its peers.
As businesses seek platforms capable of building and integrating new AI software applications, MongoDB’s Atlas stands out as a top choice due to its adaptability and robust capabilities.
Investors are increasingly recognizing the transformative potential of AI, and companies like HubSpot and MongoDB, with their strategic integration of AI technologies, are well-positioned to capitalize on this revolutionary shift in technology. While the AI market’s growth trajectory remains uncertain, the prospects for continued expansion are undeniably promising, making these high-growth stocks appealing options for those looking to invest in the AI boom.
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High-Growth AI Stocks HubSpot and MongoDB: Profit Opportunities in 2023
In 2023, the world witnessed a significant turning point in the realm of artificial intelligence (AI). Advancements in large language models fueled remarkable progress in generative AI, enabling these next-generation models to create original content autonomously. This breakthrough promises substantial productivity gains by automating repetitive tasks, allowing human employees to focus on higher-level functions.
The rapid adoption of AI has piqued the interest of investors seeking opportunities in this transformative technology. Various estimates abound, but one particularly optimistic projection from Cathie Wood’s Ark Investment Management suggests that the AI software market could potentially reach a staggering $14 trillion by 2030, assuming vendors capture just 10% of the value they create. Even if this projection proves somewhat ambitious, it underscores the potential for the AI market’s explosive growth in the coming years.
Two high-growth stocks poised to benefit from the AI boom
HubSpot (HUBS 0.42%) has made a name for itself by pioneering inbound marketing, which emphasizes building customer relationships through engaging online content, including social media and blog posts. Over time, HubSpot expanded its offerings to encompass a wide range of customer relationship management (CRM) functions, offering a comprehensive platform that includes marketing, sales, service, content management, operations, and more. Notably, HubSpot has integrated generative AI across its offerings, making it easier for users to harness the power of AI without requiring them to become AI experts. In the second quarter of the year, HubSpot reported robust results, with revenue reaching $529 million, a 25% year-over-year growth, and adjusted earnings per share (EPS) of $1.41, tripling over the same period. This growth was driven by a 23% increase in customer additions and strong relationships with existing customers.
MongoDB (MDB 0.64%) disrupted the traditional database model by offering the cloud-native Atlas platform, capable of handling diverse data types, including social media content, audio and video files, documents, and standard data. This flexibility empowers developers to create more versatile software and apps. MongoDB’s Q2 results were impressive, with revenue reaching $424 million, a 40% year-over-year increase, and adjusted EPS of $0.93, a remarkable 304% surge. The company also added 8,000 new customers in the past year, marking a 22% increase. Despite the stock appearing relatively expensive at 13 times next year’s sales, MongoDB has delivered exceptional returns, gaining over 1,300% since its public debut six years ago, surpassing its peers.
As businesses seek platforms capable of building and integrating new AI software applications, MongoDB’s Atlas stands out as a top choice due to its adaptability and robust capabilities.
Investors are increasingly recognizing the transformative potential of AI, and companies like HubSpot and MongoDB, with their strategic integration of AI technologies, are well-positioned to capitalize on this revolutionary shift in technology. While the AI market’s growth trajectory remains uncertain, the prospects for continued expansion are undeniably promising, making these high-growth stocks appealing options for those looking to invest in the AI boom.
Read More