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Some growth stories build quietly over years. Others detonate. This one has surged 105% in just three months, and we believe the rally has further to run, because the single most powerful tailwind in technology today is pouring fuel directly onto its fire.
That’s why we’ve just recommended the one stock we think is best positioned to profit from the explosion in corporate data and the AI revolution feeding off it.
So, what makes this latest Share Advisor stock pick so exciting?
- The business runs a cloud-native platform that sits above every major cloud provider, enabling nearly 14,000 customers (including 813 of the Forbes Global 2000) to unlock and analyse their data wherever it lives, free from any single ecosystem’s lock-in.
- Its consumption-based model means revenue grows as customers use it more, and they do: a net revenue retention rate of 126% shows existing clients spent 26% more than they did a year ago, while sales growth recently re-accelerated to 34%, the fastest in over two years.
- It is tapping into a market it estimates at roughly $350bn, meaning that despite its scale, it has captured only about 1% of its opportunity – a runway that AI is widening by the day.
As our Senior Investment Analyst, Ian Pierce, puts it:
“If management can continue to expand the top line by 25%+ annually as expected by sell side analysts and the current investment binge slows as it matures then we think we’ll be left with a very large, very sticky, highly profitable SaaS business.”
Ian Pierce, Share Advisor
Of course, there is risk.
This is a punchy valuation, and the company remains loss-making due to heavy spending on stock-based compensation and aggressive hiring. Not to mention that deep-pocketed competitors could build rival platforms.
This is very much a high-conviction growth holding, and investors should be comfortable with heightened volatility in exchange for what we believe is a compelling long-term opportunity.
Of course, fast-growing stocks on rich valuations aren’t for everyone, and we respect that.
For some, the absence of profits and the prospect of sharp swings will always be a step too far. But for those who believe that the businesses powering the AI age, with sticky customers and enormous untapped markets, are where real long-term wealth is built, this company sits firmly on the right side of that argument.
Our Top Growth Stock Recommendation
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