Fobi (TSXV:FOBI) surged 650% in a year! A Canadian AI stock to buy?

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 Fobi (TSXV:FOBI) surged 650% in a year! A Canadian AI stock to buy?
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Highlights

  • Fobi AI Inc (TSXV:FOBI) stocks jumped by more than two per cent on Friday, October 1.
  • The spike in the Canadian artificial intelligence (AI) company’s stock price came following a couple of corporate announcements.
  • Stocks of this AI firm have surged by more than 48 per cent in the year-to-date (YTD) period.

Fobi AI Inc (TSXV:FOBI) stocks jumped by more than two per cent on Friday, October 1, collecting a trading volume of 1.16 million.

The spike in the Canadian artificial intelligence (AI) company’s stock price came following a couple of corporate announcements.

Last week, on September 29, Fobi said has partnered with omnichannel cannabis company Kiaro Holdings Corp (TSXV:KO) to help it develop its data warehouse and real-time data analytics strategy.

Last Monday, the AI firm announced its plans to acquire some assets and liabilities of online coupon platform Qples Inc for a total price of about C$ 3.2 million along with up to another C$ 1 million earn-out.

Image description: Fobi AI is acquiring online coupon platform Qples Inc

Fobi AI focuses on boosting the operational efficiencies and profitability of its clients via its real-time data analytics using artificial intelligence.

Let’s take a closer look at how Fobi AI stocks have been doing lately.

Also read: 5 Canadian artificial intelligence stocks to buy

Fobi AI Inc (TSXV:FOBI) stock performance

Stocks of this AI firm have surged by more than 48 per cent in the year-to-date (YTD) period. The stock is also up by a whopping 650 per cent year-over-year (YoY).

 Fobi scored a one-year high stock price of C$ 3.93 on September 21, closing about 23 per cent below this level on Friday at C$ 3.04.

The AI scrip rocketed by more than 108 per cent in past six months, and currently holds a 10-day trading volume of over 2.45 million on an average.

Fobi’s return on equity (ROE), as of Friday, stood at 381.55 per cent, while its price-to-cash flow was 2.4.

Previously known as Loop Insights Inc, the data intelligence company changed its name to Fobi AI Inc earlier this year, following which the Toronto Stock Exchange Venture allowed it to change its ticker from ‘MTRX’ to ‘FOBI’ on June 4.

Also read: Top 5 Canadian penny tech stocks to buy

Bottom line

The acquisition of Qples could be a helpful addition to Fobi’s portfolio as the platform is known to connect with some of the top Consumer Packaged Good (CPG) brands and retailers in the world. Hence, this deal could help Fobi stretch its reach in primary verticals like grocery and convenience.

The AI company’s senior vice president of Corporate Strategy and Corporate Development Richard Lee said that this purchase is bringing in “additional capabilities” and strengthening its position to “connect the CPG and retail industry”.

While Fobi is a newer and smaller company compared to some other AI players in the industry, it could be one to monitor closely as it appears to be expanding its operations.

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