NICE Ltd.: Why I Choose To Skip A High-Quality Business At A Low Valuation
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Louis Liu, Esq569 FollowersFollow5ShareSavePlay(15min)CommentsSummaryNICE Ltd. trades at a steep discount despite solid profitability and sticky enterprise software revenue.AI disruption poses a pivotal risk: it could either enhance NICE's value proposition or erode its core relevance.Recent margin compression and the Cognigy acquisition reflect strategic investment in AI, but market skepticism remains high.I assign NICE a Hold/Neutral rating, given balanced risk-reward and lack of visibility into its long-term AI positioning.Investing is about taking advantage of one's knowledge to find mispriced opportunities and knowing when one lacks such an advantage.yee_yanne/iStock via Getty Images Overall Thesis I came across NICE Ltd. (NICE), a profitable enterprise software company whose stock price has fallen sharply over the past two years, while reading Barron's July 2025 roundtable pro stock picksThis article was written byLouis Liu, Esq569 FollowersFollowI run my own boutique law firm full-time, focusing on investment transactions and disputes. Trained at top U.S. law schools (Berkeley and NYU) and at leading Wall Street law firms, I write here primarily to sharpen my own thinking and to engage with my followers. My goal is to identify potential 5–10 baggers at the small- and mid-cap stage through careful fundamental analysis of businesses, financials, and valuations. I focus on early-commercial-stage life sciences companies, insurers, homebuilders, and select consumer-facing businesses. I avoid any investment opportunities I cannot analyze intelligently. If I cannot explain my investment thesis to an intelligent 8th grader willing to listen, I will likely skip the opportunity.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.