We recently published a list of 7 Best Marketing Stocks to Buy According to Hedge Funds. In this article, we’ll take a look at where Hubspot, Inc. (NYSE: HUBS) stacks up against other best marketing stocks to buy.
Artificial intelligence has infiltrated almost every industry. AI in marketing is not a new concept and has been around for some time, however, it is constantly evolving and innovating. AI in marketing not only covers planning, execution, and optimization, but it now also has strong generative capabilities. Marketers are now focusing more on developing comprehensive AI marketing strategies rather than traditional marketing plans.
Some of the Most Revolutionary AI Marketing Companies
Zoomd’s Albert AI, Cognitiv, and Singulate are among the most innovative AI marketing companies. These companies possess technological prowess and marketing expertise that meets even the smallest needs of marketers and advertisers. Let’s take a look at their offerings.
Albert AI by Zoomd is one of the most revolutionary AI marketing companies. The marketing company is one of the few completely autonomous, self-optimizing, holistic, agile and fast platforms. The platform can create plans or ads, group keywords, create campaigns, group ads, identify customers, budget, plan, create offers, develop detailed reports and provide crucial information. Most businesses plan and execute manually, and let AI take care of campaign measurement and execution. Albert AI, on the other hand, takes care of everything from planning to execution and measurement.
Cognitiv is another artificial intelligence marketing company specializing in adaptive algorithmic advertising. Its products include its Demand-Side Platform (DSP), Curation Solution, and Context GPT. DSP is an AI platform that delivers custom deep learning algorithms, cross-device graphs, deep learning CTV, dynamic user profiles, advanced context understanding, and KPIs focused on business outcomes . Its Curation solution focuses on eliminating static lookalike audiences and Context GPT, on the other hand, allows users to develop personalized prompts relevant to their brand and is designed to offer real-time contextual information for advertising.
Singulate is a leading generative AI platform used by over 850 marketers. The company is working to solve a major problem affecting the marketing industry. Marketers tend to have large amounts of data, but don’t know what to do with it. Singulate bridges the gap by allowing marketers to segment audiences and personalize content at scale. Marketing messages crafted by Singulate receive a 5-10x increase in response rates. On October 8, the company announced that it had raised $2.3 million in a seed funding round from angel investors and venture capital firms.
While startups are establishing themselves as revolutionary names in marketing, some companies enjoy a historical position that puts them ahead of others.
Our methodology
For this article, we sifted through ETFs, Yahoo Finance Stock Screener, Finviz Stock Screener, our rankings and similar rankings across the internet. We then looked at Q2 2024 hedge fund sentiment for each stock and selected the most popular ones. The best marketing stocks to buy according to hedge funds are ranked in ascending order of the number of hedge fund holders, as of Q2 2024.
Why are we interested in stocks that hedge funds are piling into? The reason is simple: our research has shown that we can outperform the market by imitating the stocks selected by the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of software developers gathered around a monitor to discuss a new CRM platform.
Hubspot, Inc. (NYSE:HUBS)
Number of hedge fund holders: 80
Hubspot, Inc. (NYSE: HUBS) ranks first on our list of the best marketing stocks to buy now. The marketing company develops and delivers software products for inbound marketing, customer service, SEO and sales, for businesses of all sizes.
Hubspot, Inc. (NYSE: HUBS) serves more than 228,000 customers in more than 135 countries. In the second quarter of 2024, the company increased its number of customers by 23% and its revenue by 20%. The company focuses on providing premium marketing and CRM services to small and medium-sized businesses. Hubspot has strived to provide a full suite of products to customers rather than standalone products, and it wouldn’t be an exaggeration to say that it has been quite successful in achieving this.
The company now hosts multiple product suites, including the Marketing Hub, Sales Hub, Services Hub, Content Hub, Operations Hub, and Commerce Hub. Hubspot, Inc. (NYSE: HUBS) was one of the first companies to integrate artificial intelligence into its product offerings. The marketing giant has been quick to release new AI tools, and in September, Hubspot, Inc. (NYSE: HUBS) added another name to its family. On September 18, the company launched Breeze, a new embedded tool focused on data enrichment.
Overall, Hubspot, Inc. (NYSE: HUBS) was one of the first companies to provide a comprehensive suite of marketing solutions to its clients and one of the first companies in the industry to invest capital in AI . This gives the company an edge, explaining why 80 hedge funds were bullish on the stock at the close of the second quarter of 2024.
Artisan Partners Artisan Mid Cap Fund stated the following regarding HubSpot, Inc. (NYSE: HUBS) in its Q3 2024 report. investor letter:
“With Dexcom and Celsius, a notable decline during the quarter was HubSpot, Inc. (NYSE: HUBS). HubSpot is a leading provider of cloud-based customer relationship management software for small and medium-sized businesses. The stock was one of the best performers in 2023 as it significantly improved its profitability after several years of heavy investments. However, as we mentioned earlier in this letter, the environment for cloud software providers has been challenging in 2024 as macroeconomic pressures have impacted customer spending. Our long-term conviction remains intact, but we have reduced the position due to near-term uncertainty. In the meantime, we are encouraged by the company’s efforts to leverage advances in AI to help internally (e.g., more efficient software development) and externally (e.g., new applications based on agents to help customers get more value from its products).
Overall, HUBS ranks 1st on our list of the best marketing stocks to buy according to hedge funds. While we recognize the potential of marketing companies, our conviction lies in the belief that AI stocks hold more promise in terms of higher returns in a shorter time frame. If you’re looking for an AI stock that’s more promising than HUBS but is trading at less than 5x earnings, check out our report on cheapest AI stock.
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Disclosure: None. This article was originally published on Initiated monkey.
