Published: March 5, 2024 at 1:23 pm ET
The technology sector was headed lower on Tuesday, taking with it a slew of hot stocks riding Wall Street’s enthusiasm for the artificial intelligence revolution.
But one small name stood out in a sea of mostly red: Shares of Airship AI Holdings Inc. were rocketing more than 85 percent in the afternoon AISP, after the sensor and data management company said it had An agreement has been reached. US Department of Justice.
The…
The technology sector was headed lower on Tuesday, taking with it a slew of hot stocks riding Wall Street’s enthusiasm for the artificial intelligence revolution.
But one small name stood out in a sea of mostly red: shares of Airship AI Holdings Inc.
AISP
More than 85 percent were rocketing in the afternoon, when the sensor and data management company said it had won a settlement with the U.S. Department of Justice.
The Redmond, Wash.-based company uses AI to help law enforcement, defense, and the public sector use customer data. Airship’s “major” contract with the DOJ agency is for the company’s “video and data management platform that supports evolving public safety and investigative needs,” according to a release.
Airship AI has a “robust pipeline” for the year, company president Paul Allen said in the release.
Airship AI is still a relatively small company, with a market capitalization of around $83 million if the current growth is anything to go by. The company went public in December through a merger with a special purpose vehicle.
A June 2023 presentation on Airship’s investor site says the company generated $14.5 million in revenue during 2022, including a 58% gross margin before interest, taxes, depreciation and amortization, or EBITDA, and a “positive “There was income.
Airship’s letter to shareholders this January highlighted the $10.9 million award from the U.S. Department of Homeland Security. At the time, the company said it had a backlog of about $11.8 million “to be delivered and invoiced in the first and second quarters of 2024”.
Other relatively small AI plays have also caught the attention of investors recently. A SoundHound AI Inc.
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It now has a market cap of $1.5 billion and was acquired by Nvidia Corp. earlier this year.
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listed the shares on its 13-F filing with the Securities and Exchange Commission. SoundHound generated nearly $17 million in revenue during its most recent quarter while posting an $18 million net loss.
Soundhound stock was down 12 percent in Tuesday’s session, while shares of C3.ai Inc.
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Which has a market cap of $3.9 billion, was down about 6 percent.