Fobi AI Inc. (FOBI:TSX) will deliver to global beverage company, Asahi Canada, an automated data intelligence tool that provides real-time analytics, insights and forecasts, according to the just signed data license agreement between the parties, it was announced in a news release.
Based in Vancouver, British Columbia, Fobi develops data-driven, real-time applications that leverage artificial intelligence (AI), automation and analytics. Asahi Canada, a subsidiary of Asahi International Ltd., distributes beer brands in Canada, such as Asahi Super Dry, Grolsch, Peroni Nastro Azzurro and Pilsner Urquell.
Fobi's data dashboard will present all kinds of data, about the industry, specific cities and regions, retail liquor stores and customers. Using the information, Asahi will be able to discover market gaps to be targeted, learn more about the competition, and gain a better understanding of consumer behavior and market trends at the retail and industry levels.
"By leveraging Fobi's actionable insights, Asahi Canada can make faster, smarter, data-driven decisions to optimize operational strategies and ensure ongoing success in today's dynamic beverage industry," the release said.
"One of The Top AI Stocks"
This Canadian tech firm sells software as a service (SaaS), reselling, referring and licensing its technology to entities around the world, in various industries. These include retail and consumer packaged goods, insurance, sports and entertainment and casino gaming. Some of its big-name customers and partners are NASDAQ, NCAA, Shopify, MGM Resorts International and BevWorks.
"Fobi AI is a frontrunner in using AI to provide real-time data analytics to enhance the efficiency of business operations and drive profitability," The Motley Fool's Chris MacDonald wrote in a January article. "Little-known Fobi AI is one of the top AI stocks, although it's not getting very much attention right now."
The company owns six global brands offering industry solutions via AI, data intelligence and mobile wallet technology, according to Fobi's investor presentation. Passcreator is a SaaS solution for mobile marketing compatible with wallet apps; Passworks is for real-time engagement with consumers using mobile content based on their location; and PassWallet is a digital wallet app for Android.
"Fobi AI Inc.'s presence in the rapidly expanding digital wallet arena has grown to the point that it is No. 3 behind Apple at No. 1 and Google at No. 2 in terms of the number of wallets it has developed," Technical Analyst Clive Maund wrote in a Feb. 20 report. "At No. 3, it is in a position to grab a huge slice of the pie. These wallets look set to be the future and to be introduced rapidly."
Worldwide, Fobi has issued more than 100,000,000 wallet passes, the company said, and its mobile first solutions are used in at least 150 countries.
Other brands are in Fobi's portfolio are Tap2Win, a solution for digitizing and improving customer giveaways; Pulse, a data-driven and mobile approach to investor relations communications offering a suite of custom managed and contract services; and Qples, a SaaS digital coupon management platform.
Well-Positioned in Hot Sectors
The global AI market is experiencing a growth spurt that is expected to continue through 2030 at the least, according to Grand View Research. By the end of this decade, the market will reach US$1.81 trillion in value, up from US$196.63 billion (US$196.63B) in 2023. This reflects a compound annual growth rate during this period of 38.1%. In 2022 alone, the value of the market increased by US$60B.
"The essential fact accelerating the rate of innovation in AI is accessibility to historical data sets," noted the report.
According to Omdia, the global AI software market is projected to reach US$94.41B in 2024 and US$126B in 2025, up from US$70.94B last year, Exploding Topics reported.
As for the global mobile wallet sector, Precedence Research forecasts it will expand at a 27.2% CAGR by 2033, in large part due to the increasing adoption of contactless payments. Estimates put the sector value at US$88.36B by then, having risen from US$8B last year.
The Catalyst: More Growth
Fobi has its sights set on continued growth and plans to achieve it in three ways, the company said.
It will continue leveraging third party application programming interface, or API, integrations with point-of-sale systems and continue forming partnerships with technology companies "to efficiently enhance, expand and implement its products." Further, Fobi will keep monetizing data through the Fobi Data Exchange, and it will continue transacting value-creating mergers and acquisitions.
"Wall Street analysts project forward growth of around 11%" for Fobi, noted MacDonald. "If this company can achieve much greater growth (which certainly could be the case), there's plenty of upside potential for this little-known AI stock."
Technical Analyst Maund expressed the same sentiment. "The upside for this stock is viewed as MASSIVE, especially in percentage terms and especially given that the fundamental outlook for both the AI sector, generally, and Fobi, in particular, is way better than before Fobi did its earlier massive double spike in 2020 and 2021."
Maund also pointed out the stock price in February did not reflect the company's status as being No. 3 in digital wallets. Today, Fobi is trading at about the same price it was then. However, Maund asserted a breakout should happen soon.
"There is a battery of technical evidence suggesting that it has run its course and that a reversal to the upside is imminent," he wrote.
The analyst recommended Fobi as a Strong Buy for all time frames.
Fobi AI is a growing but undervalued company in burgeoning sectors and offering substantial upside, experts said. Thus, it warrants a good look by investors.
Ownership and Share Structure
According to Reuters, seven strategic entities own 20.62%, or 36.67 million (36.67M) shares, of Fobi AI. Of this group the investor with the largest holding is Fobisuite Technologies Inc., a private company, with 14.94% or 26.57M shares.
The other six are individual insider investors. Listed from most to least percentage and shares owned, they are Chief Executive Officer and Chairman Robert Anson with 4.34% or 7.71M shares, Chief Operating Officer Gavin Lee with 0.61% or 1.08M shares, Director Peter Green with 0.5% or 0.88M shares, Director Jeffrey Hyman with 0.2% or 0.36M shares, Colby McKenzie 0.02% or 0.04M shares and Annie Chan with 0.01% or 0.03M shares.
As for institutional investors, there is only one: Palos Management Inc. It owns 0.84% or 1.5M shares.
Retail investors hold the remaining 78.54% of Fobi AI.
As for share structure, the company has 177.85M outstanding shares and 141.17M free float traded shares.
Fobi's market cap is CA$10.51 million and its 52-week trading range is CA$0.07−0.46 per share.
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