AITX stock price continued its bearish momentum this month as worries about the penny stock continued. The shares traded at $0.0026 as of this writing, 53% below its position a year ago. Furthermore, it is 49% below its YTD highs of $0.0051 set on January 2nd. The stock has been on the downward trajectory since the beggining of 2024, even as AI stocks thrived. This does not look well on the company.
While the company has advertised a number of innovative AI-driven products, it simply has not caught the imagination of many investors so far this year. In a period where AMD, SMCI have ans Sondhound have set tongues waggling with record profits, AITX has struggled to stay affloat, with its stock price well below the 200 day-SMA as of this writing.
What is AITX?
Artificial Intelligence Technology Solutions (AITX) was founded on March 25, 2010, by John B. Crawford. Today, the company is headquartered in Ferndale, Michigan. Today, the company engages in providing artificial intelligence (AI) solutions. Its focus is on Ai-driven technologies capable of being paired with multi-use hardware and can easily integrate with custom software and cloud services. In addition, they are also involved in the automation and integration of security, concierge, and operational tasks.
The AITX company boasts several subsidiaries, including Robotic Assistance Devices (RAD), Robotic Assistance Devices Group, Robotic Assistance Devices Mobile, On the Move Experience, and OMV Transports. One of the main products that the company is involved in is the security robots such as ROAMEO.
Where To Buy AITX Stock?
Unlike other big AI names, AITX stock is not listed on any major exchange. The reason is that it is not a publicly listed company. Nevertheless, the stock can still be traded in the OTC (Over-The-Counter) markets. Several online brokers also offer the services to invest in AITX.
The most popular platforms in this regard are WeBull, Fidelity, Robinhood, and TD Ameritrade. Depending on your jurisdiction and portfolio size, you can open an account with any of these online brokers.
AITX news
According to the latest AITX news, its subsidiary Robotic Assistance Devices (RAD) has caught the attention of Hollywood. The company’s RADDOG product appeared in hit television series CSI: Las Vegas in March, and captivated audiences with its uniques capabilities in solving crime. Also, in late March, the company announced that it would offer its SelectBlur product to law enforcement agencies at zero cost. The move aims at showcasing the company’s capabilities in the $25 billion US security and guarding services industry.
SelectBlur is a Windows-based application operable on a desktop. It enables the selective blurring of images of people in video footage, hence enabling law enforcement officers to narrow down their focus on their targets without compromising the privacy of third parties. The app is typically licenced at $299 per user per month, signalling the company’s strategic move by making it free.
As per the recently released Q3 financial results, the quarter-over-quarter revenue of the company has increased by 50%. During this period, the gross margin increased from 50% to 57%. The company has also projected recurring revenue of $800,000 by February 2024. This would also make the company’s cash flow positive.
AITX’s RADDOG, the Robotoic Dog
AITX announced on March 21st that it had begun working on a pilot production of its next generation robotic dogs RADDOG LE Gen2. First announced in January 2024, the commencement of production is good news for the company as it seeks to leverage the success of its RADDOG LE 1, the first generation units that saw RAD sign a $35,000 yearly subscription contract with the City of Taylor’s police department. The RADDOG LE Gen2 project will commence with the production of 100 units with a value of $3.5 million in annual reccuring revenue. This underlines the company’s focus on security and law enforcement industry as a key growth area.
Meanwhile, CEO of AITX and RAD, Steve Reinharz, has recently announced cost-saving measures which could end up saving $200,000 per month. In his latest town hall meeting, AITX chief revealed that the company was already saving over $100,000 a month from a variety of methods that included the elimination of non-core projects, enhancing operational efficiency, and making teams more efficient.
AITX Recent Financial Reports
AITX has not had the best financial growth for the past few years. In the financial year 2020, the company recorded a net income of negative $5.9 million. This loss was an improvement from 2019 numbers, where the company recorded a net loss of $6.21 million.
Looking at the 2021 quarterly numbers, the company recorded a net loss of $35.9 million in the first quarter. This was followed by another net loss of $4.8 million in the second quarter and a net loss of $7 million in the third quarter. The company also did not have the best quarterly figures when it came to revenue. In the first quarter of 2021, the company recorded a revenue of $560,000. For the second and third quarters, the company recorded a revenue of $141,000 and $373,000, respectively.
In October 2022, AITX published strong financial results. Its subscription revenue rose by 85% to over $228k in Q3. It also increased its gross profit margin to 87%. Notably, it continued diluting shareholders through stock issuance. However, in its latest financials released in January 2024, the company reported a 383% rise in its Solutions-as-a-Service (SaaS) segment Year-over-Year, and a 476% growth in recurring monthly revenue.This points to a potential turning point for the company in 2024.
AITX Stock vs FED Rate Hikes
The era of quantitative tightening is upon us, and most US equities are trading much lower than their 2021 highs. The constant rate hikes by the US Federal Reserve have increased the cost of borrowing. This high-interest rate environment is detrimental to innovative startups like Artificial Intelligence Solutions (OTCMKTS: AITX).
High-interest rates are not going to affect the growth of the company but will also put selling pressure on AITX stock price. Since the US Federal Reserve is expected to keep the rates high for the foreseeable future, it will be tough for AITX to achieve its 2023 targets.
If you actively trade US stocks and cryptocurrencies, you must keep a close eye on major shifts in the US Fed’s policies. I regularly post these updates in my free Telegram group, which you are welcome to join.
AITX Major Stakeholders
As a penny stock, AITX does not have the heavyweight investors that hold other companies like Blackrock and Vanguard. According to Yahoo Finance, the biggest institutional shareholders in the company are Baxter Brothers, MAI Capital Management, and Williams Jones Wealth Management. It is also estimated that Steven Reinharz, the company’s CEO, has a major stake in the company.
It is significant to note here that the ongoing rally in AI stocks already appears to be overextended. Apart from the tremendous success of ChatGPT, the breakthrough AI applications still seem to be a few years away. Recently, a ChatGPT rival was revealed by Google, which incorrectly responded to a query during its demo.
The alphabet stock tanked hard in the following days due to a half-baked launch Bard AI bot. The move was also criticized by many Google insiders and top executives.
AITX Fundamentals
AITX is a holding company that owns three firms, including Robotic Assistance Devices (RAD), Robotic Assistance Mobile Devices (RAD.M), and Robotic Assistance Devices Group (RAD-G). These companies manufacture products that are used to maintain stationary workflow automation solutions. It is a business-facing company that targets firms in the manufacturing sector.
The last few months have seen AITX make significant market moves that will position it as an AI-hardware solutions provider in the markets. Among these moves is the announcement that its subsidiary, Robotic Assistance Devices Inc (RAD), had signed Prudential Alarm as a new authorized dealer. The company also indicated that it had received an order for multiple security robots through this collaboration. This will see the company increase its sales in the coming years.
Robotics Assistance Devices (RAD) Expands In US
The company has also received orders from Texas Dealer Pro Security Group. The orders were for ROSA autonomous security robots and were requested through their RAD subsidiary. The company also recently announced that it was bringing the RAD light my way, an integrated facility and campus safety application to the market. These moves will see the company continue to gain traction and increase sales. Its RAD subsidiary has also reported being interested in Red Hawk Casino, where they would work together, with RAD providing the ROAMEO mobile security robot.
AITX Stock Forecast 2024
On a daily timeframe, the AITX stock chart appears to have become a pump-and-dump stock. Over the past year, the price has seen significant volatility spikes, with a notable steady decline between June and November 2023. Furthermore, it has lost almost half its value within the first 3 months of the year. Considering this price action, this penny stock appears to be a high-risk bet. There can be a lot of better plays in the market. My outlook on AITX stock price will remain bearish as long as the price stays below the 200-day moving average.
AITX Chart Technical Analysis
The latest analysis shows that OTCMKTS: AITX might be one of the most manipulated stocks. The following chart depicts massive spikes in both directions. It is highly risky to invest in such a hype-driven stock. Technical analysis shows that the price has failed to reclaim the 200 MA despite multiple attempts in the past few months.
The 200-day moving average acts as a line in the sand for many investors. Therefore, my AITX stock price forecast will remain bearish as long as the price remains below 200 MA, which currently lies at $0.0041. It’s better to wait for a clear reversal signal than catch a falling knife.
AITX Stock Forecast 2025
My AITX stock forecast for 2025 is prices will be trading above $0.1. This will be an average of 41 percent growth between 2023 and 2025. Although this figure is conservative due to recent price action history that has shown that AITX stock prices can rise at such a rate within less than a week, I expect the prices of the stock between 2023 to 2025 to grow at a relatively stable rate. However, there is still a possibility that AITX stock could be trading as high as $0.5 to $1.00 by 2025.
AITX Stock Forecast 2030
My AITX stock forecast for 2030 expects the stock to have crossed the $1 mark and trading between $5 to $10. This is a conservative prediction, and there is a likelihood that the prices could be as high as $20 by 2030.
Is AITX a Good Investment?
AITX is a perfect investment for long-term investors. The stocks have shown their volatility in the past, where prices can rise up to 94 percent within three days. However, as stated above, it remains a risky bet as long as it trades below its 200-MA. Therefore, I am for a cautious approach, with en entry into the market once the price returns above 200-MA.