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HubSpot Acquires Frame AI Intelligence Platform: Stock to Gain?

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HubSpot, Inc. (HUBS - Free Report) recently announced that it has entered into a definite agreement to acquire Frame AI for an undisclosed amount. This acquisition of this AI-powered conversation intelligence platform highlights HubSpot’s ongoing efforts to combine powerful AI with an intuitive, scalable platform that can support businesses to better anticipate and respond to customer needs. 

Founded in 2016, Frame AI has developed deep expertise in natural language processing and machine learning. With the acquisition, Frame AI will become a wholly owned subsidiary of HubSpot and its technology will be integrated into HubSpot’s broader customer platform, allowing businesses to gain a deeper understanding of customer sentiment, behavior and intent. 

Structured data has long been central to HubSpot’s Customer Relationship Management systems, while the potential of unstructured data, particularly conversations, has remained largely untapped. By leveraging Frame AI’s capabilities, HubSpot aims to bring these insights directly into its customer platform, enabling businesses to better anticipate customer needs and deliver personalized experiences. 

Marketing teams can craft hyper-personalized campaigns that speak to customers’ unique needs. Sales teams will gain deeper context from customer conversations, allowing them to prioritize high-value opportunities. Customer service teams will be able to identify at-risk customers through real-time sentiment analysis, helping to prevent churn before it happens.

Does HUBS Stock Stand to Gain From the Acquisition?

With a strong presence in more than 135 countries, the acquisition underscores the software-as-a-servicevendor’s commitment to advancing AI-powered solutions for businesses, bringing cutting-edge technology to an accessible and scalable platform. This will likely help HubSpot attract more customers, leading to higher revenues in the upcoming quarters. Improving financial performance is likely to propel the stock upward. 

HUBS’ Stock Price Performance

Shares of HubSpot have gained 47.8% over the past year compared with the industry’s growth of 51.8%.

Zacks Investment Research
Image Source: Zacks Investment Research

HUBS’ Zacks Rank and Other Key Picks

HubSpot currently carries a Zacks Rank #2 (Buy). 

Some other top-ranked stocks in the broader industry have been discussed below.

Celestica Inc. (CLS - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 10.64%. You can see the complete list of today’s Zacks #1 Rank stocks here.


The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers. 

InterDigital, Inc. (IDCC - Free Report) sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. 

Ubiquiti Inc. (UI - Free Report) sports a Zacks Rank #1 at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. 


 


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