2 Beaten-Down Artificial Intelligence (AI) Stocks for Contrarian Investors to Consider Buying
Yahoo Finance ·
One way to capitalize on the artificial intelligence (AI) industry is to invest in companies that could benefit from the technology, have lost significant market value in recent years, and could bounce back to deliver solid returns over the long run. Do Recursion Pharmaceuticals ( RXRX +3.41% ) and Fiverr ( FVRR 4.11% ) belong to that group? Both companies are facing headwinds that have sent their stock prices down significantly, but if they can recover, buying their shares on the dip may be an excellent move. Let's find out what's going on with Recursion Pharmaceuticals and Fiverr and why contrarian investors may want to keep an eye on them. Recursion Pharmaceuticals is an AI-focused biotech company looking to revolutionize how we develop drugs. It's arguably long overdue. Despite technological advances, the cost and time required to develop novel medicines have increased, a phenomenon known as Eroom's law. Perhaps AI will finally help change that. Recursion Pharmaceuticals uses an AI-powered algorithm that continuously runs virtual experiments to select which candidates to send to clinical trials. Most new compounds that enter the clinic never make it to market, but the biotech hopes to improve its success rate in this area compared to the industry average, thanks to its differentiated approach. If it can, the company will launch drugs much faster than its peers while generating stronger margins and profits. However, despite Recursion Pharmaceuticals' ambitious goals, the company has yet to produce much tangible evidence that its strategy can work. It has no approved products, and none in late-stage studies either.
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