An AI Technology Stock Focusing on Healthcare
Every article we write here at Nanalyze assumes the reader has no prior knowledge of technology or investing. Every article starts at ground zero, then makes its way upwards while introducing terms and concepts anyone can easily understand. While researching various companies, there are some common themes we observe. For example, disruptive technologies usually achieve rapid sales growth as they “disrupt” a particular space. However, companies won’t last too long if they’re subsidizing that growth, so then we like to look at margins as a proxy for present and future profitability. Once we’ve identified a high-growth, high-margin business, the next question is what threats might exist as other companies realize there’s money to be made in whatever niche that might be. Our recent article on iRhythm was a good example of a disruptive business that’s high-margin, high-growth.
A while ago we took a look at Nuance Communications (NUAN), a company that – at the time – seemed to be all about selling voice transcription software for a variety of use cases without having any particular focus or strategy. Revenue growth was slowing, loads of cash were being burnt, and the product seemed less than impressive when we tried to use it to write an article. Fast forward to today and things have changed for the company which now has a new leader at the helm and a clearly defined strategy that merits a second look.
