Smith, known for his straightforward investing philosophy, quietly added shares of a small company enabled to artificial intelligence (IA) to your Fundsmith wallet. This move comes amid growing interest in AI-driven consumer technology and signals potential confidence in Oddity's prospects.
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Operating in the consumer technology sector within the beauty industry, Oddity Tech is proud of two digital brands: Il Makiage and SpoiledChild. Il Makiage's flagship product, the PowerMatch algorithm, uses AI to analyze skin tone and beauty needs through your phone's camera, promehaving superior product recommendations.
The brand has received widespread acclaim, with its Woke Up Like This foundation racking up more than 550.000 independent five-star reviews, indicating a strong consumer response to its innovative approach.
Despite suffering a 25% drop in share value since its IPO, the company has shown resilience and profitability unusual among new technology offerings. The company is poised for substantial growth, with a robust increase in revenue of 37% year-over-year in the third quarter, along with promising projections for 2023. Its healthy financial position, with no debt and significant cash reserves, further increases the investor confidence in its stability and expansion potential.
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Terry Smith's decision to include Oddity Tech in Fundsmith's portfolio sparked interest among investors, indicating a possible undervaluation of the shares. Notably, the Smithson Investment Trust, founded by Smith himself, participated in Oddity's IPO, highlighting broader confidence in the company's trajectory.
While market analysts remain cautious, citing slower growth projections amid a challenging consumer environment, the company's focus on the expanding global beauty industry presents a compelling long-term investment opportunity.
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