Revolutionizing Industries: Why Every Canadian Should Consider AI Stocks

Artificial intelligence stocks could be enormous in the next few months and years, but this one stands out after falling this year.

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Canadians are increasingly turning their attention to artificial intelligence (AI) stocks. AI stocks are not just the future, they’re the present. For Canadian investors looking to diversify their portfolios and tap into the thriving tech sector, investing in AI stocks is a compelling choice.

One such company that stands out is Docebo (TSX:DCBO), a leading provider of learning platforms rooted in AI and innovation. Docebo stock has recently announced a strategic partnership with Google Cloud, setting the stage for exciting developments in the world of AI-powered education.

AI stocks: The future is here

AI stocks are expected to explode over the next few decades and even years. According to a study by Next Move Strategy Consulting, the value of AI is expected to reach nearly US$2 trillion by 2030, up from US$100 billion currently.

AI covers everything from supply chains to marketing, creating products for use in research and analysis. Eventually, it’s likely to touch everything we do. As interest continues to grow, however, one of these AI stocks could grow subtantially.

The Docebo-Google cloud partnership

Docebo’s partnership with Google Cloud is a significant milestone in the integration of AI into learning technology solutions. This collaboration is poised to revolutionize the way enterprise workforces, customers, and external communities are trained. By leveraging Google Cloud’s generative AI services alongside their AI development roadmap, Docebo stock aims to commercialize innovative solutions that transform personalized learning at scale.

As part of this partnership, Docebo and Google Cloud will host a Generative AI Learning Technology Hackathon. This event will bring together teams of technical and use case experts to apply AI to learning technology solutions, fostering a collaborative environment for cutting-edge features and functionalities integration.

Microsoft Team’s integration

Docebo stock is also making significant strides in the integration of AI with widely adopted collaboration tools. The seamless blending of learning, communication, and collaboration is Docebo’s core objective, and the integration of Microsoft Teams into their platform is a game-changer.

By offering an app for Microsoft Teams, Docebo stock enhances learner focus and engagement. Learners can interact with various learning components without switching tools, increasing efficiency and engagement. The customizable dashboards within Microsoft Teams allow organizations to tailor the learning experience for internal and external audiences, such as onboarding, talent development, and customer training.

Strong earnings, but falling short

Docebo stock’s performance in the second quarter of 2023 reflects its growth and resilience. Revenue reached US$43.6 million, a 25% increase from the same period the previous year, with subscription revenue representing 94% of total revenue. The company also reported a gross profit of US$35.2 million, which is 81% of revenue.

However, earnings fell far short of estimates. This caused a drop in share price. That being said, shares are still up 40% in the last year alone! Therefore, it’s likely shares will easily recover to 52-week highs.

Despite macroeconomic challenges, Docebo stock continued to sign major enterprise accounts across multiple verticals, highlighting its ability to thrive in changing economic conditions. The acquisition of Edugo and Peerboard further solidified its leadership position, expanding AI and customer community learning capabilities. This supports competitive differentiation and multi-use case requirements.

Investing in Docebo stock is investing in AI stocks

Docebo stock’s recent developments and strong financial performance make it an attractive choice for Canadian investors seeking exposure to AI stocks. The company’s partnership with Google Cloud positions it at the forefront of AI-powered learning technology, a market with immense growth potential.

While Docebo missed earnings in the last quarter, its recent initiatives and partnerships suggest a promising future. Investors should consider the long-term potential of Docebo, especially given its commitment to innovation and capacity to adapt to market conditions. And with third-quarter results coming, now could be the time to buy.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe has positions in Alphabet. The Motley Fool recommends Alphabet, Docebo, and Microsoft. The Motley Fool has a disclosure policy.

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