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Way back in 2002, there was a small party for Google shortly before the company held its
IPO. A journalist badgered Google co-founder – and future CEO – Larry Page with questions,
wondering how the company could possibly stand out among the dozens of search engines
in the world.
Page’s answer was short, and to the point: “Oh, actually we’re building artificial intelligence.”
Now my team and I would like to introduce you to a Canadian company that’s also building
artificial technology.
While artificial intelligence (or AI) has long seemed like a technology more fit for science fiction
than investing – today it’s suddenly become a breakthrough technology. At The Motley Fool
Canada, we firmly believe AI will be as transformative as the birth of the Internet itself.
In The Final Piece of the Puzzle: The Canadian Investor’s Guide to the Artificial Intelligence
Revolution, you’ll find access to our top artificial intelligence recommendation – OpenText
(TSX: OTEX). Bear in mind, this report contains exclusive research only available to subscribers,
so we ask that you keep it to yourself. Simply read on to get the full story now.
And thank you for joining Stock Advisor Canada!
Jordan DiPietro
General Manager, Motley Fool Canada
A wave of digitization continues to envelop companies around the world, HQ: Waterloo, Ontario
and OpenText’s vision of a “digital-first world” is ready to take investors
Website: www.opentext.com
along for the ride.
Industry Application Software
WHY BUY: Volatility Medium-High
• As processing information increases in importance, OpenText’s
Enterprise Information Management (EIM) will be the funnel that Market Cap CAD $11,290
helps organizations derive actionable insights. And, it’s Magellan Cash / Debt C$561.8/ C$3,256.1
AI-powered analytics platform will be a big reason why.
Revenue (TTM) C$2,902.9
• The nature of OpenText’s business results in a customer’s reluc-
Earnings (TTM) C$1,299.6
tance to switch; more than 70% of OpenText’s revenue is consid-
ered recurring. Total Inside Ownership 2.1%
• A rapidly expanding playbill of cloud customers — including Coca-Cola Recent Price C$42.73
and Nestle — resulting in 25.6% revenue growth in Fiscal Year 2017. Yield 1.2%
$50
Dollar amounts in millions except recent price.
$40 TTM = Trailing 12 Months
As of August 7, 2017
$30
$20
$10
$0
Aug 15 Aug 16 Aug 17
“15 years ago, you could be Amazoned, today you could Surprisingly, the vast majority of companies still remain
be Ubered, which is a reflection of digitalization.” – Mark unprepared to process the huge amount of data that swirls
Barrenechea, OpenText (TSX:OTEX)(Nasdaq:OTEX) around their enterprises. OpenText realizes this and has
President & CEO placed itself directly in the chauffer seat on the road to
digital transformation, making Artificial Intelligence it’s
That quote stuck out to me in one of the first OpenText latest driver.
earnings conference calls I tuned into back in late 2014.
In one concise statement, he compared Amazon – a mon- The Company
ster long-term stock and one of the top recommendations in OpenText graduated from the University of Waterloo after
Motley Fool history – to Uber, a then-startup now valued completing its “thesis” — that is, after it digitized all 60
more highly than just about every TSX-listed company. million words of the Oxford Dictionary. With this newly
invented search engine technology in tow (the first of its
What do Amazon and Uber have in common? Both utilized kind), it crossed the stage as a university research project
digitalization to disrupt long-standing paradigms in how and emerged as a fully incorporated entity in the summer
commerce and transportation were “supposed” to operate. of 1991.
That’s the promise of technology. No company, or industry Soon after, Open Text found itself employed by the likes
for that matter, appears to be safe due to the broad swaths of of Yahoo! in the early stages of the 1990s Internet boom.
information readily available to those who want to harness Since these humble beginnings, however, its penchant for
its power. That power is a better understanding of customers, innovation has helped build OpenText into a company that
logistics, markets, or, more simply, the enterprise. today generates close to $2.3 billion in annual revenues.
Disclosure: All figures as of 8/7/2017 unless otherwise noted. All dollar amounts are represented in Canadian Dollars, unless otherwise noted.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. David Gardner owns shares of Alphabet (A
shares), Alphabet (C shares), and Amazon. Tom Gardner owns shares of Alphabet (A shares) and Alphabet (C shares). The Motley Fool owns
shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, eBay, Open Text, and PayPal Holdings. Jordan DiPietro owns
shares of Alphabet, Amazon and PayPal. Taylor Muckerman owns shares of Alphabet, Amazon and PayPal.. This report is: (a) for general
information purposes only and not intended as investing advice; and (b) not to be used or construed as an offer to sell, a solicitation of an
offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by the Motley Fool Canada, ULC, its employees
and affiliates (collectively, “TMF”). This report represents the opinion of the individual author and does not attempt to give you professional
financial advice or advice that relates to your personal circumstances. © 2017 The Motley Fool Canada, ULC. All rights reserved. The Motley
Fool, Fool and the jester logo are registered trademarks of The Motley Fool Holdings, Inc. Published by: THE MOTLEY FOOL CANADA,
ULC 1959 UPPER WATER STREET P.O. BOX 997 HALIFAX , NOVA SCOTIA B3J 3N2 This publication is for general information purposes
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