Mitek seems to be the biggest beneficiary of Ai and Digitalisation.

With the monumental rise of Ai comes the rise of Ai fraud. Recent data suggests that in the last 6 months alone financial fraud, using Ai, has increased 4 fold. Yet things are only just getting warmed up.

Almost every software name in existence is getting pummelled and every defence name slaughtered, yet MITK which Is BOTH just wants higher. All dips bought, daily and weekly lined for an ATH breakout.

It's clear that this is the name people want when it comes to Ai fraud prevention, deepfake detection and Ai security automation.

99% of all checks in the USA are processed via Mitek, over 7,000 organisations use their software. Now most people still see Mitek for this tech alone, a boring 1980s company thats the backbone of processing an old payment method.

However it means Mitek is already within those 7,000 Banks, Credit Unions, Consumer Finance, Fintech, and Identify Verification businesses. Its software is used within nearly every top US bank already. This makes their newer offerings far easier to be added, they already have 40 years of trust and service to these businesses.

With the rise of Ai the TAM for this sector has exploded, so I'd expect to see huge growth in coming quarters as Fraud dramatically ramps up due to deepfakes and other Ai created fraud. Think about it, almost every companies, not just finsical institutions, are going to NEED a way to filter out fake applications, fake users and fake claims.

The insurance industry is in for a huge headache, small claims which are usually settled with minimal evidence from the claimant will now become ripe for fraud. They will need a system, some software, that’s able to at the very least categorically list potential scams.

Their deepfake spotter won't just be for verifying customers but identifying what's real and what's not in all walks of life.

People are all excited about the "digitalisation of everything", what company stands to benefit greatly from that? Mitek. Many countries are implementing a digital I.D, then digitalising everything from oil contracts to car permits. Somebody will be required to process these applications in an Ai era where most other software is outdated. They're already beginning to expand their offerings and whilst banks struggle to keep up with Ai, Mitek remains right alongside.

So we currently have a $600m market cap 45 year old company with incredible margins at 78%, close to $50/QR $200m In cash and serving Fortune 500 companies. Who is on the cusp and frontline of a huge TAM that will explode its current revenue numbers.

In my opinion this is an asymmetrical bet. My crystal ball idea is this thing heads for a triple within the next 12 months.