These days, even the slightest mention of AI (Artificial Intelligence) can do wonders for a company’s stock. This is true for WeTrade Group (NASDAQ:WETG), a China-based technology company offering technical support and digital transformation tools. WETG stock jumped after the company launched a large-scale language processing model to strengthen its technical reserves in the AI space. However, investors should take caution and look for better alternatives to playing the AI rally.
WETG stock closed 70.73% higher on June 14. Further, its shares are up more than 4% in after-hours trade following the announcement.
The company said that the new language generation and processing function could produce news content abstracts and help in handling article tag excerpts, text error correction, short text similarity filtering, etc. It added that the language mode was in the trial stage.
Is WeTrade Group a Buy?
While the move will help strengthen its product applications, the company is grappling with regulatory challenges. It’s worth highlighting that WeTrade Group received a non-compliance notification from NASDAQ in May for its failure to file the quarterly report on time.
Furthermore, it announced a 1-for-185 reverse stock split to regain compliance and achieve a minimum bid price of $1 per share to avoid delisting from NASDAQ.
Investors should take caution before investing in WETG in the absence of up-to-date financials and regulatory filings, and find better alternatives to ride the AI wave.
For instance, investors can rely on well-established tech players like Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), and Microsoft (NASDAQ:MSFT) to benefit from the growing adoption and application of AI.
NVDA, GOOGL, and MSFT stocks sport a Strong Buy consensus rating on TipRanks.
