AI could boost these stocks with customer support needs, Barclays says

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AI could boost these stocks with customer support needs, Barclays says

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Cloud Platform, Sandler pointed out. Lyft stands to be the biggest beneficiary of AI automating customer support requests, assuming that it can move just over a third of its Level 2 and 3 human-based customer service requests to AI. Barclays estimates that AI could drive EBITDA growth up by around 8% for the ride-sharing company, which has significantly high customer service request volumes. The stock, which is up roughly 18% so far this year and more than 100% over the past 12 months, could decline about 10% from current levels, according to analysts surveyed by FactSet. Internet domain registry GoDaddy could see about 4% EBITDA growth by using AI automation in operations and support, meanwhile, according to Barclays. At its investor day on March 6, GoDaddy said it expects between 6% to 8% annual revenue growth between 2024 to 2026, fueled by acceleration in its applications and commerce business. Shares are up about 10% year to date, and analysts polled by FactSet see upside of 9%. Finally, online gaming platform Roblox also stands to benefit from the technology as it runs high frequency micro-transactions, Sandler noted. Analysts’ consensus price target implies the stock could gain more than 20%, per FactSet. Roblox’s fourth-quarter results came in better than what the Street had hoped for in February. Quarterly bookings hit $1.13 billion, its highest ever. Shares are down more than 10% in 2024, however. To be sure, it’s still early days for companies that could benefit from deploying AI as part of their customer support, Barclays found. Most of these companies are likely only using AI for a small percentage of Level 1 requests, Sandler noted, adding that many Level 2 and 3 requests are complicated and may not satisfy customers, which are expected to churn. “We’ve witnessed productivity increases across software development teams in consumer internet, but this kind of soft improvement is ******* to quantify in terms of direct P+L benefit,” Sandler said.

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Breaking News: Markets,GoDaddy Inc,Roblox Corp,Instacart (Maplebear Inc),Lyft Inc,Stock markets,Investment strategy,Markets,business news
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