When your clients are 70% of Fortune 500 companies, you know you are on to something special.
Tech hedge fund manager Palihapitiya says Box is his favorite A.I. stock idea
Technology investor Chamath Palihapitiya is very bullish on tech companies that can capitalize on the rise of artificial intelligence, and I agree with the latest talk I saw of him. He went on to explain how internet companies become mobile companies and now AI is the next platform where in a sense AI-as-a-service takes place that will mean the rise of new kinds of companies.
Box CEO Aaron Levie may have aged prematurely the last few years, but he has proved all the skeptics wrong with Box. It’s also due to AI, on a trajectory to become a very important company.
Founded in 2005, Box is a Cloud Content Management company, and in the era of video and AI, it’s about to make it big.
In the Fall of 2017, Box introduced Box Skills, which lets app developers apply artificial intelligence from Microsoft, Google, and IBM to their cloud files. Box empowers enterprise clients to connect better with their customers via apps, information and doing it all in a secure way.
Box has 44 million users, but 82,000 paying companies, with 4 Billion monthly content interactions as of March 2018.
Box CEO Aaron Levie says that AI could be as big a shift in our technical lives as the PC revolution was — letting machines do more for us as our digital lives sprawl out.
Chamath Palihapitiya, speaking at the The Sohn Investment Conference in New York this week, said:
Box “sits on top of an enormous amount of R&D.”
“We’re finally at a point where computers can do things on our behalf,” says Levie.
If Box continues to evolve as a leading content platform for enterprise level companies, and as it adds value in the AI-space, it’s well positioned to become a platform in its own right for the AI-driven web.
The Third Wave of Computing; Box can be a Winner
The investor said over the next 10 to 20 years most enterprise software will need to get remade to incorporate artificial intelligence. He said Box is in a great position to win in this “third wave” of computing.
At $22.91 Box is also perhaps a good stock investment. How can such a company not do well if we are really in the midst of a transition from the mobile web to the AI-wave of computing?
Sohn is the most widely anticipated hedge fund event of the year, and so Box is now entering a more mainstream position as being a company well positioned for how content is rapidly evolving.
Chamath Palihapitiya argued that Box is a “really interesting disruptive company,” calling the stock “incredibly cheap and undervalued.” His presentation was incredibly lucid, and how he brought up Box as a company well suited to the third wave of computing was especially intriguing.
How Levie and Smith came up with the idea of Box is also fascinating. In a backyard hot tub at that, haha where startups are born in Seattle it seems. Early on they had to differentiate from the likes of Dropbox and GoDaddy, and now it seems they have their future niche. Box is moving beyond traditional cloud storage and into the realm of cloud content management through a whole host of value added services like Box Skills (AI application for business processes), Box Zones (workflow platform), etc…
This concept of Box skills and AI apps along with Box Zones makes for the kind of value that enterprises cannot pass up upon. Palihapitiya has been outspoken on new technologies and investment opportunities such as artificial intelligence and blockchain. Since he spoke up about Facebook, he has a legion of fans that would not have necessarily known before who he was.
Palihapitiya insisted that investors take a long-term view of artificial intelligence stocks in general. People don’t seem to realize that there’s a lot of saturation now in Silicon Business models and a company such as Box can cater to the future of both content and AI-as-a-service for big enterprise clients.
Box was worth $1.7 Billion in a 2015 IPO and has raised more than half a $ Bn. A lot has changed since the company’s inaugural user conference in 2011. There is the recognition now in 2018 that we are entering a post mobile Internet of Everything with smart speakers and personal assistants that are beginning to become emotionally intelligent (Huawei) or inter-family communication systems (Tencent’s Tingting) or business tools themselves (Alexa for Business), or mobile systems in the smart home (Amazon Robot).
Box is also making some interesting acquisitions along the way. Box also has strategic penetration in Europe, as well as offices in Japan and Australia.
In 2018 where’s in an era at the intersection of AI and the cloud, and Box has proven in recently times it’s more than simply cloud storage company and it’s this pivot to AI-as-a-service value added features that as a futurist, gets me excited.