Veritone (VERI): Evaluating Valuation After Major AI Contracts and Surging Bookings

Veritone (VERI) has just revealed a wave of new contracts for its Data Refinery platform, in partnership with large hyperscalers and model developers. As its bookings have doubled in a short period of time, attention is now shifting to Veritone’s growing role in AI infrastructure.

Check out our latest analysis for Veritone.

VERI stock has been on fire, with a share price return of 52.4% over the past month and a mind-blowing 176.6% return over the past quarter. This rally was sparked by major contract wins, optimistic preliminary revenues and growing enthusiasm about Veritone’s AI infrastructure role. Yet over the past year, total shareholder return stands at 47.1%, a reminder that despite the recent rise, volatility and strategic pivots have dominated this story.

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The recent rally raises a crucial question: Is Veritone’s breakthrough just the start of a transformation, or have recent victories and the future potential of AI already been fully reflected in the stock price?

Most popular story: 39% undervalued

At $6.25 per share, Veritone is trading well below the fair value of the most widely followed narrative of $10.25. While bullish momentum is already driving the price higher, this narrative signals even greater upside potential. This paves the way for a detailed examination of its key drivers.

“Growing demand for AI-driven analytics solutions, particularly for processing and transforming unstructured data streams such as audio, video and text, is fueling the rapid adoption of Veritone’s aiWARE and VDR platforms. This demand is supported by expanding commercial and public sector pipelines, including with hyperscalers and US federal agencies, which are expected to drive growth substantial increase in turnover. “

Read the full story.

Curious about what assumptions determine the gap between price and fair narrative value? Rapid growth prospects, profit margins and a sharply rising future earnings multiple support this valuation. Which one is more crucial to unlocking gains? Discover the financial projections that fuel the target before the next big move happens.

Result: Fair value of $10.25 (UNDERVALUED)

Read the full story and understand what’s behind the predictions.

However, persistent net losses and a heavy reliance on a handful of major customers could put Veritone’s growth under pressure if conditions change.

Discover the main risks associated with this Veritone story.

Another View: Multiples Tell a Different Story

Looking at Veritone through the prism of its price-to-sales ratio, investors might see more risk than the bullish narrative suggests. VERI trades at 4.8 times sales, which is well above its peer group’s average (2.5x), but almost in line with that of the U.S. software industry (5x). Interestingly, the fair ratio indicates a level closer to 5.2x, which suggests that there is less margin of safety than it might appear at first glance. Could this premium make the stock vulnerable in the event of a slowdown in growth?

Find out what the numbers say about this price – find out in our review breakdown.

Build your own Veritone story

If you want to test the story or take a different angle, you can dive into the numbers and shape your own perspective in just a few minutes with Do it your way.

A great place to start for your Veritone research is our analysis highlighting 1 key award and 3 important warning signs that could impact your investment decision.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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