Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
NEW YORK - Rezolve Ai (NASDAQ:RZLV) announced Friday that institutional ownership in the company has surpassed 10% of its capital structure, with several major investment firms including Citadel, BlackRock, Vanguard, Jane Street, Northern Trust, Man Group, and State Street taking positions. The increased institutional interest comes amid remarkable market performance, with InvestingPro data showing the stock has surged 59% in the past week and 283% over the last six months.
The AI-powered commerce solutions provider, which partners with Microsoft and Google, attributed the increased institutional interest partly to its recent inclusion in the Russell 2000 and 3000 indices.
"Institutional support is a powerful validation of our progress," said Daniel M. Wagner, Founder, Chairman and CEO of Rezolve Ai, according to the press release.
The company’s Brain Commerce platform incorporates Visual Search and Conversational Commerce capabilities, which the firm says powers search, personalization, and one-tap checkout functionalities.
Rezolve expects to exceed $100 million in annual recurring revenue (ARR) in 2025. With a current market capitalization of approximately $1.7 billion, the company states it trades at roughly 17 times ARR, which it claims is lower than valuation multiples seen at other AI companies. InvestingPro analysis indicates the stock is currently overvalued, despite maintaining impressive gross profit margins of 81.87%. Subscribers to InvestingPro can access 12 additional key insights about RZLV’s financial health and market position.
The company cited in its announcement that Anthropic is valued at $183 billion on a reported $5 billion ARR, representing a multiple of approximately 36.6 times revenue, while Sierra AI is valued at $10 billion as it approaches $100 million ARR, or about 100 times revenue.
Rezolve Ai’s statement indicates it believes this comparison highlights a valuation gap despite what it describes as similar revenue trajectories to peers in the sector.
In other recent news, Rezolve Ai reported achieving $70 million in annual recurring revenue for 2025, supported by contracts with over 50 enterprise customers, including a significant $9.8 million annual deal with Liverpool, Mexico’s third-largest retailer. The company also highlighted a valuation gap compared to its AI sector peers, trading at approximately 13 times annual recurring revenue, whereas companies like Anthropic and Sierra AI have much higher valuation multiples. Rezolve Ai has further expanded its global footprint by opening its Asia Pacific regional headquarters in Singapore, backed by a multi-million-dollar investment from the Government of Singapore. This expansion follows a $50 million equity round led by Citadel, enhancing its presence in Southeast Asia.
Additionally, Rezolve Ai secured a $50 million strategic investment from institutional investors, including Citadel Global Equities, indicating strong institutional confidence in its business model. The investment reflects a long-term commitment without any warrants or contingent rights. The company also announced a private placement funding agreement with two institutional investors, expected to close soon, with A.G.P./Alliance Global Partners and H.C. Wainwright & Co. serving as lead agents for the transaction. These developments underscore Rezolve Ai’s strategic growth and financial strengthening efforts in the competitive AI industry.
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