Consensus Cloud Solns Stock (NASDAQ: CCSI)

Consensus Cloud Solns Stock (NASDAQ:CCSI), Trade Ideas

Consensus Cloud Solns

Consensus Cloud Solutions

Consensus Cloud Solutions Inc is a provider of secure information delivery services with a scalable Software-as-a-Service SaaS platform. It is engaged in fax cloud business. Geographically, it derives a maximum revenue from the United States. The company's communication and digital signature solutions enable customers to securely and cooperatively access, exchange and use information across organizational, regional, and national boundaries.

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Consensus Cloud Solutions, Inc. - Common Stock

Consensus Cloud Solutions Inc

The 4 rating InvestorsObserver gives to Consensus Cloud Solutions Inc (CCSI)  stock puts it near the bottom of the Technology sector.In addition to scoring higher than 22 percent of stocks in the Technology sector, CCSIâ€&#x2122;s 4 overall rating means the stock scores better than 4 of all stocks. CCSI has an Overall Score of 4. F

Will Consensus Cloud Solutions Inc (CCSI) Trail the Rest of the Stocks in the Technology Sector?

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>In terms of technology investments, the hunt for the next game-changing entity similar to <strong>Nvidia</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/nvda-stock-quote/"><strong>NVDA</strong></a></span>) remains perpetual. Yet, within the sector, three formidable contenders have emerged that may disrupt the status quo and redefine growth. While diverse in their focus areas within the tech domain, these disruptive <a href="https://investorplace.com/industries/technology/">tech stocks</a> for growth share a common plinth of exponential profitability. </p>



<p>The first one delivers financial stability with a solid framework characterized by prudent debt management, steadfast revenue streams, and high free cash flow generation. Meanwhile, the second captivates the market with its meteoric rise in top-line growth. The growth is propelled by a surge in profitability and meticulous cost optimization strategies. In parallel, the third one solidifies its position with a focus on the operational edge. This can be observed in enhanced operating margins, segment profitability, and high EPS growth.</p>



<p>Beyond these metrics, adaptability and strategic acumen define the very essence of these tech titans. Explore these three disruptors that may catalyze a seismic shift in the tech investment space.</p>



<h2>Disruptive Tech Stocks for Growth: Consensus Cloud (CCSI)&nbsp;</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/11/saas-1600-300x169.jpg" alt="A concept image of a person holding a phone with various icons representing software-as-a-service companies."><div>Source: TierneyMJ / Shutterstock.com</div></div><p><strong>Consensus Cloud</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/ccsi-stock-quote/"><strong>CCSI</strong></a></span>), a SaaS company, reports strong free cash flow (<span>FCF</span>) generation and debt management, stable revenue base, and cost containment breed its value growth potential. </p>



<p>In Q4 2023, Consensus Cloud derived&nbsp;<a href="https://s22.q4cdn.com/277469214/files/doc_financials/2023/q4/Press-Release-Q4-2023-Final-1-docx.pdf" target="_blank">$47.2 million</a>&nbsp;in adjusted EBITDA with a margin of 53.8%, consistent with its forecasted range of 50%-55%. This indicates sharp cost management and revenue generation capabilities, which lead to positive cash flow generation.&nbsp;</p>



<p>Furthermore, throughout 2023, Consensus Cloud focused on debt reduction moves, utilizing its FCF for debt reduction. The company repurchased $71.4 million of bonds through January at an average price of 91% of par. This strategic debt reduction improves the company&rsquo;s flexibility but also reduces the interest burden. Hence, this may further solidify valuation growth potential.</p>



<p>Despite facing challenges in top-line growth, Consensus Cloud holds a stable revenue base throughout 2023 year-over-year (YOY), with revenues of&nbsp;<a href="https://s22.q4cdn.com/277469214/files/doc_financials/2023/q4/CCSI-USQ_Transcript_2024-02-21-1.pdf" target="_blank">$362.6 million</a>. This stability is vital considering the decline in revenues in Q4, indicating adaptability in managing market fluctuations. In Q4 2023, while consolidated revenues dropped by 2.7% YOY, the company strategically managed costs to hold profitability. </p>



<p>Additionally, the company eliminated inefficient marketing spending and optimized campaigns. As a result, Consensus Cloud improved EBITDA productivity and margin, minimizing the impact of revenue declines.</p>



<p>Moreover, CCSI&rsquo;s focus on the corporate business yielded positive results, with revenues hitting $49.4 million in Q4 2023. This represents a&nbsp;<a href="https://s22.q4cdn.com/277469214/files/doc_financials/2023/q4/CCSI-USQ_Transcript_2024-02-21-1.pdf" target="_blank">3.3% YOY increase,</a>&nbsp;which marks the edge of the company&rsquo;s strategic moves to drive growth in its revenue segments.&nbsp;</p>



<p>Finally, Consensus Cloud ended 2023 with $88.7 million in cash, suggesting high liquidity and stability. Overall, the company utilized its cash reserves for debt repurchases and strategic investments, which improved flexibility and reduced interest expenses.</p>



<h2>GigaCloud (GCT)&nbsp;</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/bnpl-ecommerce-fintech-300x169.png" alt="An image of a cellphone surrounded by money and shopping bags, a calendar and shopping cart on the screen; schedule payment"><div>Source: ArtemisDiana/Shutterstock</div></div><p><strong>GigaCloud</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/gct-stock-quote/"><strong>GCT</strong></a></span>), a B2B e-commerce solutions provider, has consistently delivered high top-line growth. The consolidated revenues increased by&nbsp;<a href="https://investors.gigacloudtech.com/node/7316/pdf" target="_blank">39.2% YOY,</a>&nbsp;hitting $178.2 million in Q3 2023. This considerable growth indicates the company&rsquo;s capability to capture market demand sharply and expand its top-line performance.</p>



<p>Fundamentally, the top-line growth was based on increased demand for large parcel merchandise. This results in higher GigaCloud Marketplace gross merchandise value (GMV), sales volume, and the number of sellers and buyers. The growth momentum suggests that GigaCloud is rapidly capitalizing on market demand and attracting a larger customer base to its platform.</p>



<p>One of the most striking aspects of GigaCloud&rsquo;s performance is the exponential surge in profitability. The net income soared by an astonishing&nbsp;<a href="https://seekingalpha.com/article/4656063-gigacloud-technology-inc-gct-q3-2023-earnings-call-transcript" target="_blank">3,357.1% YOY,</a>&nbsp;hitting $24.2 million in Q3. Such a massive boost in profitability suggests the company&rsquo;s operational edge, scalability, and capability to derive considerable earnings.</p>



<p>Towards the bottom line, GigaCloud has considerably improved its gross margin over the comparative period. The gross profit surged by 117.3% YOY, hitting $48.9 million in Q3 2023. The gross margin correspondingly increased from 17.6% to 27.4%. The expansion in gross margin is based on the continued return to normalization of ocean shipping rates from their all-time highs in H1 2022.&nbsp;</p>



<p>Finally, this indicates that GigaCloud effectively managed its cost of goods sold (COGS) and optimized pricing strategies, leading to higher profitability per unit sold. Another metric reflecting GigaCloud&rsquo;s performance is its adjusted EBITDA growth, which surged by&nbsp;<a href="https://seekingalpha.com/article/4656063-gigacloud-technology-inc-gct-q3-2023-earnings-call-transcript" target="_blank">150.4% YOY</a>&nbsp;to $29.8 million in Q3 2023. Hence, this indicates considerable operational efficiency improvements and effective cost controls.</p>



<h2>Celestica (CLS)&nbsp;</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/07/supply-chain-300x169.jpg" alt="image of supply chain."><div>Source: Shutterstock</div></div><p><strong>Celestica</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/cls-stock-quote/"><strong>CLS</strong></a></span>), a supply chain solutions provider, has a solid bottom line that supports its valuation expansion. For instance, Celestica&rsquo;s non-IFRS operating margin reached&nbsp;<a href="https://corporate.celestica.com/static-files/dd38c10b-77b9-44ce-9511-b667daf56007" target="_blank">6.0% in Q4 2023</a>, an increase from 5.3% in Q4 2022. This improvement indicates Celestica&rsquo;s lead in controlling costs and optimizing operational processes.</p>



<p>In Q4, the Communication Solutions (<span>CCS</span>) segment margin expanded to 6.7% (5.9% in Q4 2022), indicating boosted segment profitability. Similarly, the Advanced Technology Solutions (<span>ATS</span>) segment margin increased to 4.7% in Q4 (4.4% last year), signaling enhanced efficiency despite a revenue decline.</p>



<p>Additionally, in Q4, Celestica delivered non-IFRS-adjusted&nbsp;<a href="https://finance.yahoo.com/news/celestica-inc-nyse-cls-q4-131153918.html" target="_blank">EPS of 76 cents</a>, a considerable increase from 56 cents in Q4 2022. This growth in EPS marks Celestica&rsquo;s capability to derive higher EPS through an improved operational edge. Furthermore, Celestica&rsquo;s 2023 non-IFRS adjusted EPS was $2.43, representing a notable 28% increase YOY. This considerable growth signifies Celestica&rsquo;s constant performance and its capacity to derive value over the long term.</p>



<p>Moreover, the increase in adjusted EPS is based on multiple factors. These include higher non-IFRS operating earnings, lower interest costs, a more favorable non-IFRS adjusted tax rate, and a lower outstanding share base. Hence, these factors reflect Celestica&rsquo;s efforts to enrich profitability and optimize its capital structure to uplift EPS.</p>



<p>Finally, the high return on invested capital (<span>ROIC</span>) reflects Celestica&rsquo;s high edge in deriving returns from its invested capital. In Q4, Celestica delivered an adjusted&nbsp;<a href="https://finance.yahoo.com/news/celestica-inc-nyse-cls-q4-131153918.html" target="_blank">ROIC of 23.3%</a>, reflecting a considerable YOY improvement (20.7% in Q4 2022). Therefore, this increase in ROIC reflects Celestica&rsquo;s capability to derive higher returns on the capital deployed in its operations and breed higher valuations.</p>



<p><em>On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.</em></p>
<div><p>Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/03/the-next-nvidia-3-disruptive-tech-stocks-poised-for-explosive-growth/">The Next Nvidia? 3 Disruptive Tech Stocks Poised for Explosive Growth</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

The Next Nvidia? 3 Disruptive Tech Stocks Poised for Explosive Growth

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>In terms of technology investments, the hunt for the next game-changing entity similar to <strong>Nvidia</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/nvda-stock-quote/"><strong>NVDA</strong></a></span>) remains perpetual. Yet, within the sector, three formidable contenders have emerged that may disrupt the status quo and redefine growth. While diverse in their focus areas within the tech domain, these disruptive <a href="https://investorplace.com/industries/technology/">tech stocks</a> for growth share a common plinth of exponential profitability. </p>



<p>The first one delivers financial stability with a solid framework characterized by prudent debt management, steadfast revenue streams, and high free cash flow generation. Meanwhile, the second captivates the market with its meteoric rise in top-line growth. The growth is propelled by a surge in profitability and meticulous cost optimization strategies. In parallel, the third one solidifies its position with a focus on the operational edge. This can be observed in enhanced operating margins, segment profitability, and high EPS growth.</p>



<p>Beyond these metrics, adaptability and strategic acumen define the very essence of these tech titans. Explore these three disruptors that may catalyze a seismic shift in the tech investment space.</p>



<h2>Disruptive Tech Stocks for Growth: Consensus Cloud (CCSI)&nbsp;</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/11/saas-1600-300x169.jpg" alt="A concept image of a person holding a phone with various icons representing software-as-a-service companies."><div>Source: TierneyMJ / Shutterstock.com</div></div><p><strong>Consensus Cloud</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/ccsi-stock-quote/"><strong>CCSI</strong></a></span>), a SaaS company, reports strong free cash flow (<span>FCF</span>) generation and debt management, stable revenue base, and cost containment breed its value growth potential. </p>



<p>In Q4 2023, Consensus Cloud derived&nbsp;<a href="https://s22.q4cdn.com/277469214/files/doc_financials/2023/q4/Press-Release-Q4-2023-Final-1-docx.pdf" target="_blank">$47.2 million</a>&nbsp;in adjusted EBITDA with a margin of 53.8%, consistent with its forecasted range of 50%-55%. This indicates sharp cost management and revenue generation capabilities, which lead to positive cash flow generation.&nbsp;</p>



<p>Furthermore, throughout 2023, Consensus Cloud focused on debt reduction moves, utilizing its FCF for debt reduction. The company repurchased $71.4 million of bonds through January at an average price of 91% of par. This strategic debt reduction improves the company&rsquo;s flexibility but also reduces the interest burden. Hence, this may further solidify valuation growth potential.</p>



<p>Despite facing challenges in top-line growth, Consensus Cloud holds a stable revenue base throughout 2023 year-over-year (YOY), with revenues of&nbsp;<a href="https://s22.q4cdn.com/277469214/files/doc_financials/2023/q4/CCSI-USQ_Transcript_2024-02-21-1.pdf" target="_blank">$362.6 million</a>. This stability is vital considering the decline in revenues in Q4, indicating adaptability in managing market fluctuations. In Q4 2023, while consolidated revenues dropped by 2.7% YOY, the company strategically managed costs to hold profitability. </p>



<p>Additionally, the company eliminated inefficient marketing spending and optimized campaigns. As a result, Consensus Cloud improved EBITDA productivity and margin, minimizing the impact of revenue declines.</p>



<p>Moreover, CCSI&rsquo;s focus on the corporate business yielded positive results, with revenues hitting $49.4 million in Q4 2023. This represents a&nbsp;<a href="https://s22.q4cdn.com/277469214/files/doc_financials/2023/q4/CCSI-USQ_Transcript_2024-02-21-1.pdf" target="_blank">3.3% YOY increase,</a>&nbsp;which marks the edge of the company&rsquo;s strategic moves to drive growth in its revenue segments.&nbsp;</p>



<p>Finally, Consensus Cloud ended 2023 with $88.7 million in cash, suggesting high liquidity and stability. Overall, the company utilized its cash reserves for debt repurchases and strategic investments, which improved flexibility and reduced interest expenses.</p>



<h2>GigaCloud (GCT)&nbsp;</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/bnpl-ecommerce-fintech-300x169.png" alt="An image of a cellphone surrounded by money and shopping bags, a calendar and shopping cart on the screen; schedule payment"><div>Source: ArtemisDiana/Shutterstock</div></div><p><strong>GigaCloud</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/gct-stock-quote/"><strong>GCT</strong></a></span>), a B2B e-commerce solutions provider, has consistently delivered high top-line growth. The consolidated revenues increased by&nbsp;<a href="https://investors.gigacloudtech.com/node/7316/pdf" target="_blank">39.2% YOY,</a>&nbsp;hitting $178.2 million in Q3 2023. This considerable growth indicates the company&rsquo;s capability to capture market demand sharply and expand its top-line performance.</p>



<p>Fundamentally, the top-line growth was based on increased demand for large parcel merchandise. This results in higher GigaCloud Marketplace gross merchandise value (GMV), sales volume, and the number of sellers and buyers. The growth momentum suggests that GigaCloud is rapidly capitalizing on market demand and attracting a larger customer base to its platform.</p>



<p>One of the most striking aspects of GigaCloud&rsquo;s performance is the exponential surge in profitability. The net income soared by an astonishing&nbsp;<a href="https://seekingalpha.com/article/4656063-gigacloud-technology-inc-gct-q3-2023-earnings-call-transcript" target="_blank">3,357.1% YOY,</a>&nbsp;hitting $24.2 million in Q3. Such a massive boost in profitability suggests the company&rsquo;s operational edge, scalability, and capability to derive considerable earnings.</p>



<p>Towards the bottom line, GigaCloud has considerably improved its gross margin over the comparative period. The gross profit surged by 117.3% YOY, hitting $48.9 million in Q3 2023. The gross margin correspondingly increased from 17.6% to 27.4%. The expansion in gross margin is based on the continued return to normalization of ocean shipping rates from their all-time highs in H1 2022.&nbsp;</p>



<p>Finally, this indicates that GigaCloud effectively managed its cost of goods sold (COGS) and optimized pricing strategies, leading to higher profitability per unit sold. Another metric reflecting GigaCloud&rsquo;s performance is its adjusted EBITDA growth, which surged by&nbsp;<a href="https://seekingalpha.com/article/4656063-gigacloud-technology-inc-gct-q3-2023-earnings-call-transcript" target="_blank">150.4% YOY</a>&nbsp;to $29.8 million in Q3 2023. Hence, this indicates considerable operational efficiency improvements and effective cost controls.</p>



<h2>Celestica (CLS)&nbsp;</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/07/supply-chain-300x169.jpg" alt="image of supply chain."><div>Source: Shutterstock</div></div><p><strong>Celestica</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/cls-stock-quote/"><strong>CLS</strong></a></span>), a supply chain solutions provider, has a solid bottom line that supports its valuation expansion. For instance, Celestica&rsquo;s non-IFRS operating margin reached&nbsp;<a href="https://corporate.celestica.com/static-files/dd38c10b-77b9-44ce-9511-b667daf56007" target="_blank">6.0% in Q4 2023</a>, an increase from 5.3% in Q4 2022. This improvement indicates Celestica&rsquo;s lead in controlling costs and optimizing operational processes.</p>



<p>In Q4, the Communication Solutions (<span>CCS</span>) segment margin expanded to 6.7% (5.9% in Q4 2022), indicating boosted segment profitability. Similarly, the Advanced Technology Solutions (<span>ATS</span>) segment margin increased to 4.7% in Q4 (4.4% last year), signaling enhanced efficiency despite a revenue decline.</p>



<p>Additionally, in Q4, Celestica delivered non-IFRS-adjusted&nbsp;<a href="https://finance.yahoo.com/news/celestica-inc-nyse-cls-q4-131153918.html" target="_blank">EPS of 76 cents</a>, a considerable increase from 56 cents in Q4 2022. This growth in EPS marks Celestica&rsquo;s capability to derive higher EPS through an improved operational edge. Furthermore, Celestica&rsquo;s 2023 non-IFRS adjusted EPS was $2.43, representing a notable 28% increase YOY. This considerable growth signifies Celestica&rsquo;s constant performance and its capacity to derive value over the long term.</p>



<p>Moreover, the increase in adjusted EPS is based on multiple factors. These include higher non-IFRS operating earnings, lower interest costs, a more favorable non-IFRS adjusted tax rate, and a lower outstanding share base. Hence, these factors reflect Celestica&rsquo;s efforts to enrich profitability and optimize its capital structure to uplift EPS.</p>



<p>Finally, the high return on invested capital (<span>ROIC</span>) reflects Celestica&rsquo;s high edge in deriving returns from its invested capital. In Q4, Celestica delivered an adjusted&nbsp;<a href="https://finance.yahoo.com/news/celestica-inc-nyse-cls-q4-131153918.html" target="_blank">ROIC of 23.3%</a>, reflecting a considerable YOY improvement (20.7% in Q4 2022). Therefore, this increase in ROIC reflects Celestica&rsquo;s capability to derive higher returns on the capital deployed in its operations and breed higher valuations.</p>



<p><em>On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.</em></p>
<div><p>Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/03/the-next-nvidia-3-disruptive-tech-stocks-poised-for-explosive-growth/">The Next Nvidia? 3 Disruptive Tech Stocks Poised for Explosive Growth</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Warning: CCSI is at high risk of performing badly

Consensus Cloud Solutions Inc (CCSI) stock is down -57.80% over the last 12 months, and the average rating from Wall Street analysts is a Hold. InvestorsObserver's proprietary ranking system, gives CCSI stock a score of  32 out of a possible 100. That rank is primarily influenced by a long-term technical score of 2. CCSI's

Is Consensus Cloud Solutions Inc (CCSI) Stock a Good Value?

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Investors have made a ton of money in cloud computing stocks over the past 15 years. The transformation from on-premise to off-premise software, data storage, and security has been truly revolutionary for the technology industry.</p>



<p>But at some point, a concept may get played out. And it seems like we&rsquo;re reaching that point with cloud computing. The concept is hardly novel at this point, and a great deal of software-as-a-service (SaaS) vendors have already fully adopted cloud solutions into their product ecosystems.</p>



<p>In other words, while cloud computing was a megatrend that delivered huge profits for early adopters, there are no guarantees that newer firms will be able to find similar success in coming years. These are three cloud computing stocks to avoid that don&rsquo;t seem like they have found the recipe for long-term success in the industry.</p>



<h2>Hub Cyber Security (HUBC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/03/stocks-red-down-bearish-hands-1600-300x169.jpg" alt="Grayish photo of investor's hands hovering over laptop with red stock graph showing downward arrow overlayed on top of the image. falling stocks"><div>Source: shutterstock.com/Leonid Sorokin</div></div><p><strong>Hub Cyber Security </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/hubc-stock-quote/"><strong>HUBC</strong></a></span>) is a small Israeli company focused on cybersecurity and quality and reliability systems. It operates the following segments: Consulting, software, training, and software testing and outsourcing.</p>



<p>The company was flying under the radar until October 2023. On October 9th, 2023 shares <a href="https://investorplace.com/2023/10/hubc-stock-israeli-firm-hub-cyber-security-spikes-165-on-cyber-attack-threat/">more than doubled</a> in a single day following the Hamas attacks in Israel. Traders seemingly concluded that Hub Cyber Security would see an influx of new business as the Israeli government and businesses responded to the geopolitical unrest.</p>



<p>Since then, however, HUBC shares have lost most of their value. In fact, the stock is now down 95% over the past year. It has also replaced its CFO and <a href="https://seekingalpha.com/news/4042982-hub-cyber-security-appoints-noah-hershcoviz-as-new-ceo-shares-fall">CEO in short order</a>. The company is also enacted <a href="https://finance.yahoo.com/news/hub-announces-reverse-share-split-154200674.html">a reverse stock split</a> to get back in-line with <strong>Nasdaq</strong> listing compliance late last year. But with the stock already back in penny stock territory, HUBC stock may have to take more actions to get its share price back above a dollar.</p>



<p>All this looks like a typical SPAC deal gone bad; a fledging cloud technology company with a small revenue base and sizable operating losses that will struggle to stick around for the long haul.</p>



<h2>Rekor Systems (REKR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/01/rekr1600-300x169.png" alt="Security Video Camera Vehicle number identification system. Rekor Systems &#x2A;REKR) makes vehicle identification, artificial intelligence."><div>Source: Al Serov / Shutterstock.com</div></div><p><strong>Rekor Systems</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/rekr-stock-quote/"><strong>REKR</strong></a>) is a small business that has been involved in a <a href="https://seekingalpha.com/article/4384024-rekor-systems-sum-of-parts-analysis-implies-58-percent-downside-red-flags-on-corporate">variety of different undertakings</a> in recent years. The company at one point was involved in crisis management, consulting, traffic solutions, secure education, and strategic back office services among others. There was a push for AI-driven machine learning at another point.</p>



<p>Not surprisingly, REKR stock attracted trader interest as an AI penny stock in 2023. However, Rekor Systems was unable to convert the visibility into any lasting momentum in the business&rsquo; operations or share price.</p>



<p>Rekor&rsquo;s most recent earnings report once again <a href="https://investorplace.com/earning-results/2024/03/rekr-stock-earnings-rekor-systems-for-q4-of-2023/">fell short of expectations</a>. Despite all the mergers and acquisitions and numerous press releases, Rekor has struggled to demonstrate much progress. </p>



<p>As such, it&rsquo;s hard to imagine the company will still be in business a decade from now unless its products find much more commercial traction in the market.</p>



<h2>Consensus Cloud Solutions (CCSI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/stocks-to-sell-300x169.jpg" alt="A white clock indicates it's time to sell."><div>Source: Shutterstock</div></div><p><strong>Consensus Cloud Solutions</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/ccsi-stock-quote/"><strong>CCSI</strong></a></span>) provides digital cloud fax technology. This allows companies, particularly in the healthcare space, to secure their digital communications.</p>



<p>While faxes (digital or otherwise) are hardly the latest communications technology, there is still some demand here, at least for the time being. In certain fields, clients opt for the traditional secure and proven communications channel rather than a newer and more flexible but potentially more vulnerable option.</p>



<p>That said, Consensus Cloud is not firing on all cylinders right now. Revenues were up only marginally year-over-year, and other metrics such as total client figures were around flat as well. It&rsquo;s tough to gain much growth in what seems like a structurally declining industry. As the company&rsquo;s <a href="https://s22.q4cdn.com/277469214/files/doc_financials/2023/q4/CCSI-2023-Q4-IR-PPT-VFFF.pdf">risk factors</a> disclosure notes, there is risk of: &ldquo;Reduced use of fax services due to increased use of email, scanning or widespread adoption of digital signatures or otherwise.&rdquo;</p>



<p>Over the next decade, that seems likely to be the case, in fact. CCSI stock seems cheap on an earnings basis. But the company has debt, and a <a href="https://finviz.com/quote.ashx?t=CCSI&amp;ty=c&amp;p=d&amp;b=1">negative book value</a> per share figure. It&rsquo;s far from certain this business will still be around in 2034, at least as an independent public entity.</p>



<p><em>On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.</em></p>
<div><p>Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/03/gray-skies-ahead-3-cloud-stocks-that-will-be-gone-in-10-years/">Gray Skies Ahead? 3 Cloud Stocks That Will Be Gone in 10 Years</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Gray Skies Ahead? 3 Cloud Stocks That Will Be Gone in 10 Years

HUBC

REKR

Press Releases

Consensus Cloud Solutions Achieves HITRUST Risk-based, 2-year Re-Certification Sustaining the Highest Level of Information Protection Assurance

Consensus Cloud Solutions to Participate at the 42nd Annual J.P. Morgan Healthcare Conference in January 2024

Consensus Cloud Solutions Appoints Accomplished Industry Leader, Johnny Hecker, as Chief Revenue Officer

Consensus Cloud Solutions to Host Q4 and 2023 Year End Investor Call on February 21, 2024

Consensus Cloud Solutions to Showcase AI-Powered Solutions for Advanced Data Transformation at ViVE 2024

Compex Legal Services Partners with Consensus Cloud Solutions to Provide an e-Signature Solution for Law Firms

Consensus Cloud Solutions, Inc. Provides Fourth Quarter and Full Year 2023 Results (Preliminary and Unaudited); Releases Q1 and Full Year 2024 Guidance

Super Micro Computer and Deckers Outdoor Set to Join S&P 500; Others to Join S&P 100, S&P MidCap 400 and S&P SmallCap 600

Consensus Cloud Solutions to Reimagine Secure Faxing and AI for Healthcare at HIMSS 2024