While AI competition is a valid concern, it may not be as disruptive as initially anticipated. The stock rebounded yesterday following the news, and I’ve initiated a position by acquiring one-third of my intended allocation.
Would be interested to hear your perspective on CSU’s outlook. Thanks.
Insider buying is a good sign, but not infallible. AI can create opportunities as well as threats. The call last week (outlined in our blog) was a good summary. Software could be 'stickier' than many think and companies are not going to simply swap out mission critical software with AI-generated options. They may, over time, but they will not bet their company on new tech right away. CSU can also adapt, and is. It could also make acquisitions in the AI space (though valuations are higher). Each CSU company runs independently. Some may see weakness, but others might thrive. Consensus estimates still calls for 20%+ growth next year. Valuation after the decline, of course, is more attractive now. Acquisitions continue (one was announced this week).