Key insights
- The author highlights SimilarWeb's potential due to partnerships with Anthropic and OpenAI, enabling AI clients to access their data. This creates a new revenue stream. The stock is undervalued based on sales, gross margins, and free cash flow, making it an attractive investment with potential acquisition appeal. This could positively influence market sentiment towards AI-driven data analytics companies.
I’ve posted on SMWB several times but this price action is worth noting. Both Anthropic and OpenAI have written MCP (model context protocols) attaching SMWB data - so clients of Anthropic and OpenAi can access the data (via subscription) to perform their own proprietary analyses. This creates a highly profitable new channel for SMWB. The stock is still trading at only 1x this year’s sales with 80% gross margins, free cash positive, and 2/3 revenues under long term contracts. They are a beneficiary of AI - and even a conservative free cash DCF gets you a value 3X higher. Easily could be acquired but even if not a great risk/reward.