Fobi AI Inc. (FOBI:TSX) landed two new customers, a global beverage company and theme park ticketing provider, and will deliver different digital technology solutions to each. This Canadian tech solutions firm develops data-driven, real-time applications that leverage artificial intelligence (AI), automation, and analytics.
For new customer Asahi Canada, according to a news release, Fobi will deliver an automated data intelligence tool that provides real-time analytics, insights and forecasts, as outlined in a signed data license agreement. 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 give 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.
Technical Analyst Clive Maund wrote, "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."
For Fobi's other new partner, an unnamed provider of ticket sales and advertising services in the U.S., Fobi will create up to 1 million digital tickets for sale via the partner's various online and retail channels, as announced in a news release.
The technology behind this service features seamless digital ticketing and exclusive pass bundles.
Theme park operators benefit from a consolidated and streamlined ticketing process, which is attractive because many of them offer several types of tickets, like single-day, multi-day, and front-of-line access.
Also, operators can seamlessly incorporate an additional set of features, including a paid media channel, into the ticketing process. "This," the release explained, "not only unlocks valuable guest data but also establishes a fresh avenue for enhancing guest monetization strategies."
Fobi's technology also simplifies ticketing for park guests. They may put other pre-purchased offerings on their mobile wallet tickets, too, such as gift cards, food and beverage purchases, merchandise, and meet-and-greet opportunities. Then with one tap, their ticket gets put in their Apple or Google Wallet.
"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 February 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 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 interfaces, or API integrations, with point-of-sale systems and will 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 that 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.
Streetwise Ownership Overview*"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 the company, about 20% is held by insiders, including the CEO Anson, who has 4.35% personally and 15.45% through Fobisuite Technologies Inc. The rest is with retail.
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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Important Disclosures:
- Fobi AI Inc. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Fobi AI Inc.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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- Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed.
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Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
