A Stock Idea Amidst Increasing Difficulties In Data Analysis
The world of data is moving fast and is poised to continue accelerating in growth as more and more instruments and sensors continue to capture more and more data points.
This is only becoming compounded by the onboarding of artificial intelligence and the explosion of new interconnected devices that a 5G network is expected to unleash.
Simply put, there are many tasks that AI can perform faster and more efficiently than humans. It is estimated that we produce 2.5 quintillion bytes of data per day. While individual businesses only produce a tiny fraction of that total, there is no denying that trying to analyze data points drawn from diverse areas such as logistics, marketing and corporate software programs is becoming increasingly difficult.
This is where AI enters the picture. Machine learning allows AI to analyze data points at much greater speed than a person ever could, while also eliminating the risk of data entry errors that so often occur during manual work.
One company that I have been following with intrigue is a very small-cap name focused on a niche sector of data analysis called data fusion. The company is named Red Violet Inc. (RDVT).
Red Violet Inc. (RDVT) - $13.82/sh
Mkt cap - $142 mil
While I will not go into the back story of why the company is intriguing beneath the surface of its current operation, I do want to throw out the name as I will probably talk more about it in the future.
What is important is this. Data fusion is a subsector of big data analysis which can take disparate and unstructured data sources in order to form patterns and make connections that would not be obtainable without piecing the parts together as a whole.
I only put this out there as it is very difficult to find pure-play companies that specialize in this. Likewise, this particular kind of data analysis is likely to grow in light of the vast amounts of incoming data that will become increasingly difficult to make sense of with ease.