Stitch Fix Is in a Bind, and AI Probably Can't Save It. 3 Things Investors Should Know.
Investors have warmed to artificial intelligence (AI) stocks in recent months, and the trend has even helped a struggling company like Stitch Fix (NASDAQ: SFIX). The AI-driven styling and clothing company impressed Wall Street for a time by assisting customers in determining their personal styles with the help of AI and then selling clothing based on that assessment.
However, mounting losses and other challenges took their toll on Stitch Fix over the last two years. And even with a partial recovery, investors should keep three things in mind as the company makes its long-shot attempt at a comeback.
Admittedly, with all of the AI-driven hype, it's understandable that investors may turn to Stitch Fix stock. Also, since Stitch Fix incorporates a human element, customers can get the best of both worlds when assessing their style. That gives the company a unique competitive advantage over other clothing retailers.
Source Fool.com
