Company Overview: Serve Robotics Inc. (NASDAQ: SERV) sounds like an interesting company with a forward-thinking focus on autonomous, low-emission delivery robots. Verint Systems Inc. (NASDAQ: VRNT) is a company that provides customer engagement solutions, aimed at helping brands close the gap between customer expectations and the resources needed to fulfill those expectations. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these stocks.

Financial Update: The company recently announced its financial results for the quarter ending September 30, 2024 (3QFY24).

• For the third quarter, the company reported revenue of $0.22 million, which included $0.04 million in software service revenue from its agreement with Magna. As of September 30, 2024, the Company held $50.9 million in cash and cash equivalents and had 39.6 million shares of common stock outstanding.
• In the third quarter of 2024, SERV deployed 59 daily active robots, marking a 23% increase from the prior quarter and a 97% rise compared to the same period last year. These robots collectively logged an average of 465 daily supply hours, representing a 21% quarter-over-quarter growth and a 108% year-over-year increase.

SERV’s Technical Analysis:

On the daily chart, SERV prices are trading above the falling trendline support zone. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~64.58 level. Further, the prices are trading above the trend-following indicator 21-period SMA, which may act as a support level. An important support level for the stock is placed at USD 11.60, while the key resistance level is placed at USD 14.60. 

Daily  Technical Chart – SERV

Considering the stock’s current trading volume surging, and momentum oscillator analysis, a “Speculative Buy” recommendation is given on the stock. The stock was analysed as per the closing price of USD 13.08 per share as on 13 December 2024, up by 15.34%.

Financial Update: The company recently announced its financial results for the quarter ending October 31, 2024 (3QFY25).

• During the quarter, revenue increased by 3% year-over-year as reported, and by approximately 5% when adjusted for the divestiture. Gross margin improved by around 70 basis points compared to the previous year. Bundled SaaS revenue rose by 19% year-over-year, while SaaS Annual Recurring Revenue (ARR) saw an 11% year-over-year growth.
• In Q3, strong demand for AI-driven business outcomes led to a 19% year-over-year growth in bundled SaaS revenue. Customers increasingly adopted the company’s hybrid cloud model, focusing more on AI projects than cloud conversions. New SaaS ACV bookings for new deals, excluding cloud conversions, grew by 37% year-over-year. This growth is driven by VRNT's ongoing AI innovation, including the introduction of its latest AI-powered bot on the Verint platform.
• For the year ending January 31, 2025, the company’s non-GAAP outlook includes projected revenue of $933 million, plus or minus 2%, reflecting a 5% year-over-year growth (adjusted for the previously mentioned divestiture). Diluted EPS is expected to be $2.90 at the midpoint of its revenue guidance, representing a 6% year-over-year increase.

VRNT’s Technical Analysis:

On the daily chart, VRNT prices are trading below the downward sloping trendline resistance zone. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~61.02 level. However, the prices are trading above the trend-following indicator 50-period SMA, which may act as a support level. An important support level for the stock is placed at USD 25.40, while the key resistance level is placed at USD 32.60. 

Daily Technical Chart – VRNT

Considering the stock’s current trading below the falling trendline, and momentum oscillator analysis, a “Watch” recommendation is given on the stock. The stock was analysed as per the closing price of USD 29.01 per share as on 13 December 2024, down by 4.23%.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest, taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is December 13, 2024 . The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.