저자: JimCramer · 외국인
요약 보기
Rezolve AI(RZLV)는 실적이 거의 없는(2024년 매출 약 18.8만 달러, 영업손실 1.38억 달러) 기업으로, 과도한 홍보성 보도자료, 형식적 파트너십 주장, 비트코인 재무전략, 잦은 지분 희석(사모 2억 달러 등)을 이유로 Cramer는 강하게 비우호적이다. 연말 ARR 1억 달러 목표 달성 가능성은 열어두지만 주가가 4개월간 450% 이상 오른 만큼 기대가 과도하며, 실적이 실망스러우면 하락 위험이 크다고 본다. 대신 실적이 있는 AI 관련주(Credo Technology)를 선호한다.
다듬은 글
Ignition. We have liftoff. Kramer's going for extra credit with his second homework assignment of the day. Stick around for his deep dive on Resolve AI. Next. Tonight, we're running a homework double header. After I got stumped with a couple of names in the lightning round last Thursday, just before the break, I covered Crito Technology Group, which makes connectivity equipment for the data center.
It's a red hot stock that's been pulling back and I think it's a buy or weakness. Next up, Brian in Rhode Island asked about Resolve AI and that's with a Z. But this is a very different kind of artificial intelligence play. Brian told us that Resolve had partnerships with Google, Microsoft, and the stable coin issuer Tether.
Sounded intriguing, but alas, I didn't know the company at all, and the stock has been straight up recently. So, I told Brian that we get back to him. I didn't know Resolve because the company essentially came out of nowhere over the past year or so. Resolve actually announced a deal to come public via a spa merger way back in December of 2021, but that deal didn't close for over two and a half years.
Finally, in August of last year, it did. But after the stock spiked to 12 bucks in the days after the deal closed, the thing then dropped like a rock, falling all the way down to $2 and change late last year before finally bottoming at a 07 this April. At that point, Resolve AI was too small for me to even mention on air.
By late August, though, it had rebounded to around $3. And over the past month or so, the stock has more than double. It's now sitting at nearly six bucks. And that's after pulling back hard from its highs a little over a week ago. So, what exactly does this company do? And is the stock worth buying now that it's cooled off, including a savage 10.8% decline today?
Okay. Resolve makes AI software for e-commerce, including chatbots, that act as personalized shopping assistants, listening to what the customer is looking for and steering them in the direction of what they like, as well as a one-click checkout solution that makes people more likely to complete their transactions.
I could go into more detail, but I'm going to stop right there because, well, I I don't like Resolve. Not one bit. Why? For starters, this is one of the most promotional companies I've ever seen. As promotional as I think you can get without, let's say, uh, getting too close to the law, those so-called partnerships with Microsoft and Google, they seem flimsy.
I went back and looked at the announcements, both of which came in the fourth quarter of last year, and basically Microsoft and Google are reselling resolve software tools through their cloud stores, while thousands thousands of products are available there. If that's a partnership, then anyone who sells things via the app store has a partnership with Apple.
Resolve also puts out tons and tons of press releases, often for trivial reasons. A few weeks ago, they published a press release just to point out that a couple other AI stocks are valued much more richly than theirs. Who the heck puts out a press release to announce that their stock is too cheap. That's a red flag to me, as is the fact that Resolve is pursuing a Bitcoin treasury strategy where they buy Bitcoin or some other cryptocurrency as investment.
Although the details on that effort are very vague, it's not even clear if they've started. If you've got a business that's worth investing in, why divert your money to crypto speculation? Here's what makes this even worse. Not only is Resolve hyper promotional, the company's also a serial seller of its own shares.
Just this week, in fact, the company announced that it raised $200 million in a private placement involving a number of existing investors. for that private placement. By the way, management priced the offering at $540, which was well below the stock's spot price of $7 and change at that time. So, they hyped their stock, hyped their own stock to attract home gamers, maybe like you.
Then they sell tons of shares on the cheap to big institutional investors. And this is just the latest example for perspective. that an SEC filing from August of last year, Resolve said it had 172 million shares outstanding. In that same filing from this August, it was 244 million shares. And at last count, in its filing early this month, the share categor 284 million shares, which doesn't include the 37 million shares just sold in last week's private placement.
This is a headscratcher. Then there's the financials, or should I say the lack thereof. Resolve essentially had no revenue last year. Specifically, they had roughly 188,000 in revenue. Not 188 million people, 188,000. As for earnings, they reported an operating loss of 138 million. And that's the last actual result we have from Resolve because this is a British company and he only needs to report earnings twice a year.
Now, Mattress says that they weren't trying to have revenue in 2024 and that this is the year where it should all come together for them. Resolve said repeatedly that they expect to reach $100 million in annual recurring revenue by the end of this year. They've been saying that since late last year, and to their credit, they haven't backed away from that target.
Over the summer, the company disclosed that it had reached 70 million in annual recurring revenue, and they've repeated that a few times. We'll know more when again they report October 1. I'm assuming they'll have decent revenue results, but I suspect that those will be paired with rather large losses.
Still, the company might say that the end of the year ARR target is now $125 million or something like that, and the stock could sore. Wouldn't shock me. Of course, given that the stocks more than doubled in a month, expectations should now also be pretty high. So, if the results don't live up to management's recent bluster, then look out below.
Honestly, I wouldn't try to game the quarter either way. But overall, when it comes to Resolve AI, I just can't find much reason to chase the stock's recent rally. The Resolve story has a lot of sizzle with a yet to be determined amount of stake. Given that the stock's up more than 450% from its April lows, I can't count this recommending this one, especially with all the red flags we've seen from management.
Look, I'd love to be proven wrong with this one. Maybe they'll report something incredible next week, but I got to go with my gut. And my gut says the risks outweigh the potential rewards. Here's the bottom line. If you want to play on artificial intelligence, I'm begging you to find one with actual earnings like that credo technology group that I just talked about and not a money loser like Resolve AI that seems best at promoting itself and then selling its own shares.
Usually, those aren't great qualities in an investment. Let's go to Kenny in New York, please. Kenny. A gym.
Comments 0