The YouTuber suggests Schrodinger as a riskier but potentially high-reward AI drug discovery play. While it has negative revenue growth and deeper losses than Recursion, its software licensing revenue helps minimize cash burn. The low price-to-sales valuation compared to peers suggests that much of the bad news may already be priced in, offering significant upside if good news emerges.
“The reason I'm including shrodinger in our list beyond that strong interest in AI drug discovery that could make this a 10 bagger stock still is that much of the bad news could already be priced in with a price to sales valuation of just 7.4 times.”