Samsara (IOT) Buy $32-$33 – Internet of Things, Cloud Platform for fleets, construction, and equipment tracking.
Strengths:
The largest pure play in the IoT tracking business.
Positioned as a cost saver and fast return on investment with higher safety, fuel savings, lower insurance premiums, and so on.
Only sells 3-5 year contracts as a subscription model for recurring revenue.
With top logistics companies and major local governments.
Now 52% of business is from large customers with over 100K in annual recurring revenues.
The stock is off about 25% from its all-time high of $41 – this should be a good entry point.
Weaknesses:
The usual, since it’s a growth story; is 2-3 years away from GAAP profitability but broke even on adjusted earnings and became cash-positive for the first time in 2023. Recent IPO – 2021, it has a long runway ahead, this is a fragmented market and even though it has large competitors like the fleet division of Verizon Communications, there aren’t any pure plays as a cloud platform with the ability to scale across verticals – not restricted to fleets.
Trade Alert – Bought Samsara (IOT) $32.50
Here is the full article on Seeking Alpha.
https://seekingalpha.com/article/4684950-samsara-the-best-bet-in-the-iot-cloud-platform-market