Summary: WATCH
Score: 7/20
MOS: 62%
Share Price: $171
Sticker Price: $452
Is Alteryx a good buy?
AI (Artificial Intelligence). Will it take over the world?
No. This isn’t Terminator.
In my 15 years of experience working in software engineering, I’ve created multiple AI platforms. Creating AI is much more simple than you think. In fact, it’s a non-glamorous process. I’ll use smoothies as an example.
Let’s say you want to create an AI robot (We’ll call her Sara) that teaches you how to make specific flavors of smoothies. This means, a Software Engineer or DBA (Database Administrator) needs to manually enter a large volume of questions that may be asked such as “How to make a Banana, Honeydew Almond, or Triple-Berry Blend Smoothie”. Then, on the flip side of those questions, you need to manually enter a large volume of answers. In the case of a Honeydew Almond Smoothie you would enter the following answer “Blend 2 cups chopped honeydew melon, 1 cup each almond milk and ice, and honey to taste.” Overall, you do this hundreds or thousands of times for the questions and the answers (boring!). This way, when you ask Sara how to make a specific smoothie, she will respond with the most likely answer.
But, if you ask Sara how to make the PERFECT gin and tonic (my beverage of choice), she won’t have any idea what you’re talking about. I’m sure you’ve run into this same issue with our friend, Alexa. Side note, ask Alexa if she has any pets. She has a fun response for you. 🙂
AI is very isolated. It’s not going to become “self-aware” like Skynet and take over the planet. It only understands what data you enter within the questions and the answers.
How does this relate to Alteryx? Alteryx is an enterprise BIG DATA SaaS. You know how I feel about enterprise SaaS, right? (Hint: Typically VERY GOOD investments). In other words, Alteryx helps collect and organize large sets of data for large companies that may be used as inputs to Artificial Intelligence. Altyeryx is one of the big data market leaders.
This is a “rule breaker” stock for me. As you can see the stock is classified as WATCH within Tykr but look at the Sticker price of $452 compared to the Share Price of $171. It’s classified as watch because the points are less than 10. FYI… I bought this stock at $60 back in 2018 because I know where big data is headed.
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