QM · rank #17 · 2026-09-04
BAND
NASDAQ · $1.52B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +240.06% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +0.6% |
| Profit margin Net profit margin, trailing 12 months. | +0.3% |
| Market cap (USD) Size filter: > $500M required. | $1.52B |
| Anchor (recent) Close on 2026-08-05 | $45.67 |
| Anchor (far) Close on 2025-08-05 | $13.43 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Bandwidth (BAND) operates a cloud communications (CPaaS) platform on an owned global network, generating ~$900M in 2026 guided revenue from usage-based voice and programmable messaging services for enterprise customers.
Rationale
The momentum_12_1 signal of 2.40 is reinforced by concrete fundamental catalysts — 22% YoY revenue growth, record adjusted EBITDA margins, raised full-year guidance, and accelerating AI-driven usage — giving the price trend a durable earnings-revision tailwind consistent with quality_momentum logic.
Material risks
- 1Commoditization and in-house build risk is the primary thesis-breaker — hyperscalers or large enterprise customers replicating programmable communications capabilities internally would directly erode the usage-based revenue growth and pricing power underpinning both the momentum and quality signals.
- 2Messaging surcharge revenue (~$68M/quarter, ~31% of total) is exposed to carrier or regulatory repricing that could materially compress reported growth and margins without warning, distorting the quality metrics the model is rewarding.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.