To The Moon

With the year 2025 fast approaching, technology has evolved so much that consumer preferences have changed a lot too.From smart shopping assistants to contactless payments, the way people select, evaluate and buy things is much different than it used to be.

AI has driven a lot of personalized experiences, right, and young people are now getting more comfortable with using AI to decide where to shop and what to buy.Those algorithms that utilize massive amounts of consumer data can tailor recommendations to each individual.So companies that can provide this personalized experience are definitely reaping the benefits of this trend.

Technology has made business activities and supply chains and whatnot more transparent, and consumers are increasingly attracted to brands that are sustainable and ethical.Many technologies provide real-time sustainability scores, and ESG reports for large companies are now commonplace.

On the other hand, payment technology, digital wallets, contactless payments, and all of these, have made shopping easier and faster as well as safer, completely changing the pace of transactions.

As such, there are three stocks to recommend that are broadly benefiting from the AI tech-driven consumer trend:

1. $Twilio(TWLO)$ This is a leader in the information technology space, giving businesses a communications platform that can integrate a variety of tools into applications.It's put a lot of effort into artificial intelligence and machine learning, and recently partnered with OpenAI to launch real-time APIs that allow customers to build awesome virtual conversational assistants.Revenue grew 10% year-over-year in Q3, beating expectations, and EBITDA grew 51%, with improved margins.Wall Street is also bullish on it, with shares up 74% in the last three months and 28% in a year.And it's got a good valuation, too, with a price-to-book ratio of 2x, which is 41% below the industry median for those who want to invest in personalized customer interactions.

   

2. $Gap, Inc(GAP)$ A globally recognized apparel retailer with many brands.It has a strong focus on sustainability, with four consecutive quarters of net sales growth and seven quarters of market share gains, as well as omni-channel sales through technology.Profitability is also strong, with an ROE of 29% and a net margin of 5.4%, both above the industry median.There have been 17 earnings estimate upgrades and no downgrades in the last 90 days.The valuation is also attractive, with an overall rating of "A", like a non-GAAP P/E ratio of only 0.25 and a TTM P/E ratio of 11.1x, which is much lower than the industry, making it a solid investment choice.

   

3. $Block(SQ)$ Formerly known as Square, it is an awesome player in the financial sector.Started as a payments business, now a diversified fintech company with Square payments platform and Cash App digital wallet.Gross profit for the third quarter was $2.25 billion, up 19 percent year-over-year, a significant improvement in profitability.Its bitcoin investment and mining strategy may also add to profits.While the rising stock price has made the valuation less attractive, it's still a 52% discount relative to the industry, making it a good choice for investors who are bullish on the tech-driven consumer trend.

   

   In short, the consumer market has been changing rapidly as a result of technological advances, and those companies that can capitalize on good technology to meet new consumer preferences will be able to capitalize on the opportunity and even lead the way.