The past year has been an eye-opener in terms of the potential applications of artificial intelligence (AI), but we've only scratched the surface. The ability to automate certain tasks is expected to create a productivity tsunami of a kind rarely seen before.
“The development of AI is as fundamental as the creation of the microprocessor, the personal computer, the Internet, and the mobile phone,” the authors write. microsoft Co-founder and former CEO Bill Gates. “Entire industries will pivot around it, and companies will differentiate themselves by how well they use it.” AI is no exaggeration, it's the future of technology.
Among the companies poised to benefit from this long-term tailwind are: symbolic (SYM 4.74%). Stocks have been on a wild ride over the past year, but that could be just the beginning.
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tomorrow's warehouse
Symbotic isn't a household name, but it might be the most important company you've never heard of. We provide AI-powered supply chain automation solutions that revolutionize logistics. Even as e-commerce adoption continues to increase, consumers are demanding faster delivery times than ever before. Symbotic provides technology that solves this problem and carves a profitable niche in the AI ecosystem.
Symbotic has developed an AI-powered system that is protected by over 334 global patents. The system automates inventory processing, moving cases and pallets within warehouses and distribution centers, and loading and unloading trucks. Some of the world's most high-profile retailers are his Symbotic customers. walmart, the goal, albertsonsC&S Wholesale Grocers.
The company's automation system combines a comprehensive software architecture with a cadre of fully autonomous bots to create turnkey end-tools that remove the complexity of warehouse logistics, whether it's upstream distribution centers or downstream e-commerce fulfillment. Deliver end solutions.
Perhaps most importantly, the system uses AI to optimize both traffic and storage, squeezing as much as possible out of available real estate and pushing more inventory into the same amount of space. The result is significant cost savings, increased efficiency, reduced labor costs, and reduced transportation and operating costs. The system pays for itself in just a few years and saves users millions of dollars each year thereafter.
Vast and growing opportunity
More and more shoppers are turning to online retail, and this trend is expected to continue. According to eMarketer, global e-commerce sales are expected to reach $6.3 trillion in 2024 and $8 trillion by 2027. This trend is expected to accelerate with a surge in mobile sales, which are expected to grow 14% to $2.5 trillion this year.
As a result, the global warehouse automation market is expected to grow at a compound annual growth rate of 16% between now and 2023, with Symbotic leading the way.
The company is also expanding its footprint internationally, moving beyond its initial focus on general merchandise into new areas such as apparel, home improvement, and auto parts.
beyond sale Symbotic is a revolutionary warehouse automation system. Softbank So-called green box. The resulting company will install Symbotic systems in warehouses and offer a “warehouse-as-a-service” option to third-party customers, providing a new avenue for growth for the company.
blockbuster results
Symbotic's innovative solutions are highly praised by customers who are lining up to participate. The company's performance helps explain demand. Symbotic's first quarter of fiscal 2024 (ended December 30, 2023) saw revenue of $368 million, an increase of 79% year-over-year, resulting in the company's Adjusted Before Interest, Taxes, Depreciation, and Amortization Earnings after earnings (EBITDA) were positive for the second consecutive quarter. At the same time, the loss per share decreased to $0.02, an improvement of 75%. Management noted that as the number of systems deployed increases, the company's size and leverage will also increase, leading to increased profitability.
Management expects the company's impressive growth to continue. Symbotic expects second-quarter revenue to be $410 million at the midpoint of guidance. This represents a 54% year-over-year growth. Additionally, Symbotic has an order backlog of $23.2 billion, which shows that demand is steadily growing.
Symbotic is chasing a huge opportunity with a total addressable market (TAM) of $432 billion and an additional $500 billion in warehouse-as-a-service offerings.
attractive opportunity
Symbotic stock has been growing like wildfire, up 154% over the past year (as of this writing). Despite the meteoric rise, the company's stock still trades at less than double next year's sales, the very definition of an affordable stock.
Extremely reasonable pricing, strong and rising demand for its systems, and long-term tailwinds in both online retail and AI demonstrate why Symbotic is poised to ride the wave of this once-in-a-generation opportunity. I am.
