Q: this company seems to be winning awards and new business , but very volatile.
does the future look brighter ?
does the future look brighter ?
5i Research Answer:
CVO offers 'AI-powered e-commerce search and discovery'. Shares are down 38% this year. It has $167M cash; market cap $585M. It continues to lose money, but cash flow has turned positive. Revenue rose 5% in the recent quarter and its loss was slightly less than expected. Its guidance was in line with estimates. It is in a sexy sector, but we would have expected more than 5% revenue growth. Analysts call for about 15% growth in 2025. We would consider it OK, but not hugely exciting. After the better-than-expected results and the fact that the fourth quarter is typically good for tech stocks, we would be OK holding for a while longer.