Marpai (NASDAQ: MRAI) stock was up 90% Thursday. It's difficult to see exactly why this is as there's not much news around and that there is doesn't seem all that interesting. But it does have AI in the corporate name and as we know there's something of an excitement about this new technology. We assume, in the absence of other evidence, that this is what is causing the excitement. Whether that is therefore justified, well, that's a matter for the reader, obviously.
Other reasons for Marpai's jump are difficult to find. The most recent corporate announcement was of the annual general meeting and the re-election of the directors. No, that's not the sort of news which doubles a stock price. Well, it doesn't normally at least. Before that there was the annual results and while the purchase of Maestro Health is expanding the client base and revenues it doesn't seem to be doing all that much for the bottom line. Losses for the full year 2022 rose to $51.3 million from the previous year's $30.1 million. This is also not the sort of thing that doubles share prices and anyway that announcement was back on March 29th.
Marpai stock price from NASDAQOur assumption is therefore that this is all about the “AI” part of the corporate name. Or, as MRAI itself puts it: “The Most Advanced AI Transforming Self-Funded Employer Healthcare”.
Just to remind, Americans tend to get their healthcare through their employer. The majority of this is done with an insurance or other company managing the plan but the employer carrying all of the financial costs and risks. Thus the health of the workforce is a considerable risk for the employer. Adding AI into this to manage that general health and thereby reduce costs and risks sounds like a perfectly sensible idea.
We're deeply unsure this is worth a near doubling of a stock price in the one day though. Our assumption is therefore that this MRAI 90% rise is a bit of speculative froth. Investors are trading that fashion for AI rather than the particular and actual prospects of Marpai itself.