CS Disco Inc. (NYSE:LAW) is one of the best performing new tech stocks to buy now. On January 5, Jefferies analyst Brent Thill increased the price target for CS Disco to $8, which was brought up from $6, while maintaining a Hold rating. In a broader software sector note, Thill suggested that while 2026 will see continued incremental AI monetization, the company needs faster growth to calm investor fears regarding AI disruption. He noted that while software value should eventually rise, current historical valuations mean investors will likely need to remain patient.
In Q3 2025, CS Disco Inc. (NYSE:LAW) highlighted a 13% year-over-year increase in total revenue to $40.9 million and a 17% jump in software revenue. A major driver of this growth was the rapid adoption of the company’s GenAI tool, called Cecilia AI, which saw its customer base more than triple compared to the previous year. Furthermore, the company successfully beat the high end of its revenue guidance and adjusted EBITDA.
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Despite these gains, the company continues to navigate financial challenges as it prioritizes long-term innovation over immediate profits. Adjusted EBITDA remained slightly negative at $297,000 due to strategic investments in market expansion. The company is intentionally spending on product development to capture market share, which includes a focus on high-value areas like IP litigation and maximizing the impact of the AI-integrated platform.
CS Disco Inc. (NYSE:LAW) provides cloud-native and AI-powered legal products for legal hold, legal request, ediscovery, legal document review, and case management in the US and internationally.
While we acknowledge the potential of LAW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
