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Knightscope - AI Stock Analysis

Analysis generated January 2, 2025

Knightscope, Inc. is an American security technology company known for designing and deploying autonomous security robots (ASRs). Their robotic offerings are designed to improve safety and security through advanced technology, with AI-driven surveillance solutions as a prime focus. The company's primary target market includes malls, hospitals, and corporate campuses, among other public areas. However, as with all technology companies, Knightscope faces significant challenges in market adoption, customer retention, and financial sustainability.

Fundamental Analysis

Knightscope’s revenue for the last quarter was $2.5 million. This represents a decrease of 20.86% compared to the previous quarter, suggesting a declining trend in the company's sales performance. Even more concerning is the 23.74% drop compared to the same quarter last year, indicating systemic challenges in revenue growth.

The net income for the last quarter stood at -$11 million, marking a 73.88% decrease compared to the quarter before it. Year-over-year, the net income fell by 30.71%. These figures suggest that Knightscope isn't just facing a revenue problem but is also battling severe profitability issues that have worsened significantly recently.

EBITDA for the last quarter was -$7.7 million. This is a decrease of 14.67% compared to the previous quarter and a decline of 20.74% compared to the same quarter last year. The negative EBITDA indicates that Knightscope is struggling to maintain positive operational cash flow, a crucial aspect for any company aiming to sustain long-term growth.

Technical Analysis

The current stock price of Knightscope is $12.38, representing a 27.18% decrease compared to a month ago. More alarmingly, the stock price has plummeted by 58.57% year-over-year, signaling significant bearish sentiment among investors.

Further technical indicators show a downward trend. The SMA10 has decreased to 13.50 from the previous 13.59, indicating potential sustained downward movement. With the Relative Strength Index (RSI) at 25.8, the stock could be considered oversold, which might present a potential buying opportunity in the short term; however, this needs to be balanced against other bearish signals.

Alternative Data Analysis

Starting with job postings and employee sentiment, Knightscope currently has only one open position, down by 67% in the last couple of months. This sharp reduction indicates cost-cutting measures and could point towards financial struggles or a strategic shift in optimizing margins.

Employee sentiment about the business outlook remains neutral, offering no significant optimism or pessimism.

Knightscope has seen a decline in web traffic, with an estimate of 13,000 visitors to their web page, down by 35% over the last couple of months. Customer engagement metrics also show weaknesses, with the number of Instagram followers down by 1% and Twitter followers by 2%. These reductions suggest a waning interest in the company, which could affect customer acquisition and retention negatively.

AltIndex's AI score for Knightscope stands at 16, indicating a strong sell signal. This AI score is derived from combining fundamental, technical, and alternative data analysis, reinforcing the notion that Knightscope's challenges are multi-faceted and significant.

Conclusion

The combined analysis of Knightscope’s fundamentals, technical metrics, and alternative data paints a concerning picture. Revenue, net income, and EBITDA have all shown significant declines. The technical indicators point towards a bearish trend, with the stock price falling substantially both in the short and long term. Alternative data, including job postings, web traffic, and social media engagement, further suggest difficulties in maintaining market interest and operational stability.

Given these data points, Knightscope appears to be in a precarious position. Potential investors should exercise caution and consider these factors carefully before making any investment decisions. Given the current analysis, Knightscope's stock would be best approached with a strong sell or, at minimum, a hold recommendation, depending on individual risk tolerance.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.