The Bear Cave Issues Report On TaskUs: What To Know

TaskUs, Inc. TASK shares are trading lower Thursday after The Bear Cave newsletter issued a report on the company. 

The Details: The report titled, "Problems At TaskUs (TASK)" claims many of the services provided by TaskUs, including customer service, fraud prevention, content moderation and image labeling, can and will be automated by artificial intelligence. 

Benzinga reached out to TaskUs for comment before publication, but did not receive an immediate response. 

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The Bear Cave report pointed to increased spending on AI for content moderation at Meta Platforms, Inc. META, TaskUs' largest customer, and reduced spending by Facebook on TaskUs' services. TaskUs said on its last earnings call revenue for its "Artificial Intelligence Services" segment declined by 24% because "our largest overall client and our largest autonomous vehicle client" reduced spending, according to The Bear Cave report.  

The report also alleges TaskUs management have presented a "variety of excuses" including "certain client cost optimization initiatives" to cover the risk of AI to the future of its business.  

According to Benzinga Pro, TaskUs is set to report its second-quarter results on Aug. 8 after the closing bell. The company has beat analysts' earnings and revenue expectations in each of the last 10 quarters. 

Is TASK A Good Stock To Buy?

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For example, for TaskUs, you'll notice that earnings in its last quarter grew 3.45% source. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, TaskUs's price-to-earnings ratio — a measure of how much an investor pays for the company's — is projected to compress 61.14% in the current quarter when compared with last year.

That places it above similar businesses Broadridge Financial Soln, SS&C Techs Hldgs, Genpact in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on TaskUs's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

TASK Price Action: According to Benzinga Pro, TaskUs shares are down 2.16% at $16.15 at the time of publication Thursday.

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