Hot Penny Stock Pick: Why Nauticus Robotics Could Go From Unknown to Must-Own

Stock Market

If you think you’ve already discovered every artificial intelligence stock, think again. Many investors haven’t even heard of Nauticus Robotics (NASDAQ:KITT), but they’re missing out on an interesting opportunity. After conducting your full due diligence, you just might decide to add a few Nauticus Robotics stock shares to your portfolio.

As you can probably surmise, Nauticus Robotics is a robotics company. It uses sensors, AI and algorithms to develop autonomous robots for oceans.

That’s an AI angle you might never have thought of before. There could be an undiscovered AI niche market gold mine here, and Nauticus Robotics will only cost you pennies per share. So, hold your breath as we take a deep dive into the fascinating world of Nauticus Robotics.

Nauticus Robotics: ‘From Promise to Product’

“We’ve gone from promise to product,” declared Nauticus Robotics President and CEO John W. Gibson, Jr. His statement referred to Nauticus Robotics’ flagship ocean-robotics vehicle, the AUV Aquanaut Mark 2.

Nauticus Robotics successfully tested the AUV Aquanaut Mark 2 in the Gulf of Mexico for “launch and recovery, emergency procedures, and maneuverability.” Consequently, Nauticus Robotics is confident that this vehicle will be “capable of generating daily revenue in Q3 2024 from existing contracts.”

It’s hard to estimate an exact figure for how much revenue that means. Depending on a range of factors, Nauticus Robotics envisions day rates for the Aquanaut vehicle and services related to it to fall between $25,000 and $70,000.

Perhaps the full deployment of the AUV Aquanaut Mark 2 will enable Nauticus Robotics to garner more public-sector revenue. The company already fulfilled defense-sector contracts in 2023 and in 2024’s first quarter.

Nauticus Robotics’ Financials: Good and Bad News

Turning to the financial side of the equation, Nauticus Robotics delivered a mix of positive and negative news for the first quarter of 2024. Starting with the good news, Nauticus Robotics reported net income of $0.4 million, or a penny per share.

That’s a notable improvement when compared to the company’s net loss of $39.5 million in the prior quarter and the $14.1 million net loss from the year-earlier quarter. So, at least Nauticus Robotics flipped to profitability from that standpoint.

On the other hand, Nauticus Robotics sustained an adjusted net loss of $7.4 million in Q1 of 2024. This is a reason investors shouldn’t over-invest in Nauticus Robotics stock.

There’s another piece of good news, though. In 2024’s first quarter, Nauticus “recognized revenue from commercial sources” for the first time. That’s important because it means Nauticus Robotics isn’t entirely dependent on defense-sector revenue.

Nauticus Robotics Stock: A Secret AI Pick for 2024

Nauticus Robotics’ financials aren’t perfect in every way. On an adjusted basis, the company is unprofitable. So, investors should keep tabs on Nauticus Robotics’ quarterly reports and look for improvement in this area.

Still, we noted some positive points in Nauticus Robotics’ recent financial results. Nauticus Robotics appears to be making good progress with its AUV Aquanaut Mark 2 vehicle. Therefore, if you can handle some risk, feel free to buy a few shares of Nauticus Robotics stock, a secret AI stock pick for 2024.

On the date of publication, David Moadel 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 Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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