Machine-Learning: The New Master of Financial Mark
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NetworkNewsWire Editorial Coverage: The rise of artificial intelligence is fast disrupting the financial universe and establishing new paradigms of understanding and action. Computers now drive market velocity, and because the volume of available financial information has expanded exponentially over the last few decades, machines have become indispensable to deciphering these mountains of megabytes in order to create clear-cut actionable intelligence. Given the large data sets and quantitative nature of the modern-day financial services sector, artificial intelligence (AI) has innumerable applications that are poised to revolutionize the industry over the next few years. AI saves companies time and money through the use of algorithms to generate insights, improve customer service and make calculated performance predictions. Because of the ability to foresee market trends and deliver analysis and insights far better than humans, information behemoths and financial titans such as S&P Global Inc. (NYSE: SPGI), Euronext NV (OTC: EUXTF), The Blackstone Group, L.P. (NYSE: BX) and Thomson Reuters Corp (NYSE: TRI) are integrating and increasingly acquiring machine-learning, artificial intelligence technologies such as those provided by AnalytixInsight Inc. (TSX.V: ALY) (OTCQB: ATIXF) (ATIXF Profile), which offers investors a compelling opportunity to participate in this industry shift.
With broad, game-changing impact, it’s little wonder that AI has become the playground of venture capitalists, financial goliaths and tech giants. Just three years ago the world’s largest asset manager, Blackrock, acquired FutureAdvisor — which only provides digital financial advice-based algorithms — for $152 million. Purchased at a whopping 50 times FutureAdvisor’s $3 million in revenues, Blackrock plans to integrate the technology platform into its commercial offerings. At another eye-popping premium, the financial sector recently registered the largest AI acquisition ever recorded when S&P Global purchased data analytics company Kensho for $550 million. For the most part, individual investors have only been able to watch from the sidelines during this AI bonanza since these private machine-learning start-ups have relied on private venture financing during their growth stages, prior to take out.
Publicly Traded AI
One of the few existing publicly traded, growth-stage, artificial intelligence companies is AnalytixInsight, Inc. (TSX.V:ALY) (OTCQB: ATIXF), a machine-learning pioneer that has developed and globally deployed state-of-the-art proprietary artificial intelligence solutions. AnalytixInsight has established partnerships, business relationships and joint undertakings with some of the world’s leading companies in finance, technology and information management. The company has strong strategic relationships with global financial heavyweights, has quadrupled revenues from 2016 to 2017, owns 49 percent of MarketWall (http://nnw.fm/34Xco) and trades at a compelling valuation.
AnalytixInsight’s artificial intelligence technology uncovers meaning in seemingly random numbers and discordant data, transforms unintelligible information into plain English, and delivers it as actionable insights. The technology is scalable and applicable to virtually any data-driven industry, such as finance, communications, healthcare, insurance or government. AnalytixInsight has already achieved significant strategic inroads in fintech, information management and workflow analytics, offering AI solutions in three strategic initiatives: CapitalCube.com, MarketWall and Euclides Technologies.
Financial Portal with Impact
AnalytixInsight’s flagship product, CapitalCube.com, is a breakthrough artificial intelligence financial portal that provides comprehensive machine-driven research and insights by performing billions of computations and comprehensive analysis on every listed stock in the world every day. Within seconds, SAAS-based platform CapitalCube.com delivers on-demand fundamental research, portfolio evaluation and screening tools on any of 50,000-plus global equities and North American ETFs. CapitalCube supplies individual investors with the power of algorithms and analytics previously enjoyed only by major Wall Street institutions. Stock analysis is delivered with every conceivable metric, which is immediately scored against peers for safety and analysis. An investor no longer needs to parse through reams of financials because CapitalCube instantly displays important key financial ratios such as working capital and year-over-year revenue growth.
CapitalCube puts powerful information at the fingertips of individuals by providing in-depth analysis on a company’s financial fundamentals, or its reported earnings. Peer group comparisons are also used to provide a fundamental rating score for each company, as well as a dividend quality score to quickly identify the potential strength and consistency of a company’s performance when compared to its peers. The platform also provides predictive projections using AI-derived information to project the likelihood of potential corporate actions, such as a cut to company’s dividend payout or the initiation of a share buyback program.
CapitalCube offers direct users free access to basic financial information. Expanded access and detailed reports on companies are available for reasonable monthly or annual fees. CapitalCube’s natural language generation engine also publishes thousands of articles daily for content partners such as The Wall Street Journal, Thomson Reuters and Yahoo Finance. The financial portal also dispenses historical guidance in tandem with the impact of real-time, predictive information directly to end users.
Applications That Deliver
AnalytixInsight will also use its platform to deliver AI solutions for other industries beyond financial. The company has already taken strides into analyzing the data collected within the field service management industry and is eyeing other big-data industries, such as healthcare and sports. AnalytixInsight’s subsidiary Euclides Technologies is an expert systems integrator for workforce management solutions for large global corporations and services, and has touch points to more than 100,000 field service personnel across multiple industries. Through Euclides, AnalytixInsight facilitates solutions that save utilities, telcos and other field services companies time and money. These solutions sift through the vast amounts of data collected when service workers are in the field to discover insights and trends that allow a corporation to streamline efficiencies within its field service operations.
MarketWall is AnalytixInsight’s fintech subsidiary that develops and deploys integrated software solutions for stock trading and banking. Together with Italy’s largest retail bank Intesa Sanpaolo, AnalytixInsight has joint ownership of MarketWall, and has announced that it will deploy its real-time stock trading and mobile banking app to Intesa Sanpaolo’s 12.6 million customers in Europe later this year. As a Samsung Global Partner, the MarketWall app is already preloaded on certain Samsung devices in select areas across Europe. MarketWall already has partnerships in place with some of the world’s largest players in the financial, technology and information management industries, including Morningstar, Bats Global Markets, NetRange, dpa-AFX and Miia.
Known by the Company They Keep
AnalytixInsight has teamed up with Euronext NV (EUXTF: US), a major European stock exchange, to offer CapitalCube’s cloud-based financial analytics platform for Euronext’s recently launched stock trading app. Formed in 2000 and now merged with the NYSE, Euronext is one of the largest stock exchange networks in the world, with 1,300 issuers representing a €3 trillion market capitalization. The Euronext partnership with AnalytixInsight exemplifies the direction the financial sector is headed. Since artificial intelligence reduces costs, enhances customer experiences and generates new revenues, it would come as no surprise to see multiple other exchanges create s similar — or even greater magnitude — partnerships.
AnalytixInsight maintains high-profile content partners such as The Wall Street Journal, Yahoo Finance and Thomson Reuters Corp. (NYSE: TRI). Recently, the relationship between AnalytixInsight and Thomson Reuters took on new import with the announcement of a distribution agreement between the companies. Thomson Reuters, which has provided news and information for professional markets worldwide for more than 100 years, will now distribute financial research reports created by AnalytixInsight’s artificial intelligence platform for customers on its most popular financial desktop applications, Eikon and Thomson One. CapitalCube.com will provide Thomson Reuters access to a unique AI-based machine learning platform and increased content coverage.
In January, a group led by The Blackstone Group, L.P. (NYSE: BX) agreed to buy a majority stake in Thomson Reuter’s financial and risk unit in a deal valued at $20 billion (http://nnw.fm/nj4wT). Notably, the Thompson Reuters unit being acquired provides data, analytics and trading to Wall Street and financial professionals around the world. This is a staggering transaction not only for its size but also for its portent. Blackstone is one of the world’s leading investment firms, with more than $430 billion in assets under management. A private equity foray into the financial information business in such a big way is an indication of where smart money is headed. Private equity is noted for prescient investments and creating success by exacting business efficiencies. AnalytixInsight operates directly in that wheelhouse.
Follow Smart Money to Make Money
If the breathtaking Blackstone deal isn’t enough evidence of where smart money is headed, look just a little further toward the world’s largest ratings agency. In the largest artificial intelligence acquisition to date, S&P Global Inc. (NYSE: SPGI) established a new benchmark by purchasing AI upstart, Kensho for $550 million (http://nnw.fm/aC4Zc). In business before the Civil War, S&P Global is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. Only five years old, Kensho provides analytics, artificial intelligence, machine learning and data visualization systems to Wall Street’s global banks and investment institutions. The largest AI transaction on record emanating from Wall Street and not Silicon Valley is a clear indication of just how much the future of the financial ecosystem is tied to artificial intelligence.
Ranked as one of the TSX Venture’s top 10 technology companies (http://nnw.fm/LTCl0), AnalytixInsight begs comparison with others connected to the space. Last April, venture capital firm DST Global, best known for early investments in Facebook and Twitter, led a financing for mobile trading app Robinhood (http://nnw.fm/u8Jzt). Robinhood doesn’t provide comprehensive or predictive analysis like true AI companies, only news, instruction, and zero fees on trades. Its primary revenue stream is a $10 per month service that allows users to make trades instantly and trade on margin. This month it was announced the company had raised $363 million in a Series D round led by DST Global along with new participants including Sequoia Capital and Capital G (the venture capital arm of Google parent Alphabet), valuing the company at a staggering $5.6 billion, a four-fold increase over last year’s $1.3 billion valuation.
AnalytixInsight is a fully integrated machine learning, artificial intelligence company, which also jointly owns Marketwall — a Robinhood-like mobile trading app, yet it trades at a modest $20 million valuation. Somewhere between $20 million and $1.3 billion in valuation a potential opportunity for the individual investor watching from the sidelines as venture capital eagerly flows into this industry.
For more information about AnalytixInsight, Inc., please visit AnalytixInsight, Inc. (TSX.V: ALY) (OTCQB: ATIXF).
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