2 Beaten-Down Artificial Intelligence (AI) Stocks for Contrarian Investors to Consider Buying
2 Beaten-Down Artificial Intelligence (AI) Stocks for Contrarian Investors to Consider Buying
Publish Date: 2026-06-26 00:50:00
Source Domain: www.theglobeandmail.com
Here’s a summary of the provided article using an unordered list of 6 key points:
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Opportunity in AI-driven Sectors: The article suggests that investing in companies benefiting from AI, which have lost market value but significant upside potential, could be a lucrative move in the long run.
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Recursion Pharmaceuticals:
- AI-focused biotech company aiming to revolutionize drug development via AI algorithms.
- Despite no FDA approved drugs yet and late-stage study absence, a promising candidate REC-4881 shows potential.
- Significant risk but potential for massive upside if clinical and regulatory progress is made.
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Fiverr:
- An online platform connecting freelancers with clients, pivoting from short $5 gigs to focusing on more complex projects starting at $1,000.
- Despite revenue decline, net income and EPS have improved; however, the platform still faces risks as AI threatens traditional freelance jobs.
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Contrarian Investing:
- Contrarian investors with a high tolerance for risk may consider small positions in a bounce back scenario, especially if new strategies show success.
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Market Skepticism:
- The Motley Fool Stock Advisor did not include Recursion Pharmaceuticals in its top 10 recommended stocks, citing historically tremendous past performance of its recommended stocks (e.g., Netflix, Nvidia).
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Final Recommendations:
- Investment decisions should weigh both the significant upside potential and the inherent risks, particularly given Recursion Pharmaceuticals’ yet-to-materialize tangible proof of its AI strategy efficacy and Fiverr’s ongoing challenges within a changing freelance landscape influenced by AI.
