I asked ChatGPT for a FTSE stock that could help me quit the 9-to-5. It said…
The FTSE 350 is made up of the largest 350 firms listed on the London Stock Exchange. Hidden within all that choice, there will inevitably be a few stocks that will make investors a small fortune over the next few years. Especially if we extend our search to the whole market.
However, there are too many options for a small team to wade through, never mind just one person. So I turned to popular AI bot ChatGPT to help me out.
I asked it to name me a UK stock that could surge and help me quit the 9-to-5 job. Here’s what it said.
A fallen angel
The stock ChatGPT gave me was…drumroll…ASOS (LSE:ASC). This is the online fashion company from the FTSE All-Share Index that has 17m active customers in over 150 markets.
My algorithm amigo said “online fashion is still booming globally, especially among younger demographics. ASOS has a loyal following and can scale internationally“.
It’s certainly true that e-commerce is still booming. In 2026, revenue from online transactions is projected to reach $6.88trn, a 7.2% increase from 2025, according to Shopify. And global e-commerce sales are set to grow to $7.89trn by 2028!
However, I’m not convinced ASOS has such a loyal following. In its last financial year, covering the 52 weeks to 31 August, the firm reported that active customers fell from 19.7m to 17m.
For context, the active customer base was 26.4m in mid-2021!
Worryingly, like-for-like sales in the US (-22%) and Europe (-17%) fell much faster than in the UK (-9%) last year. This strongly suggests that ASOS is struggling to maintain its brand appeal abroad against bigger rivals like Shein and Temu.
Now, management would argue some of this customer loss is a deliberate choice, as it’s doing far less discounting on its platform. It’s charging more full prices to help rebuild profitability and margins.
Still, I don’t see any evidence that ASOS is set to “scale internationally” anytime soon. It faces immense competition from dozens of rival fashion apps.
Given this alarming decline in customers (and profitability), I can see why the stock has crashed 95% since early 2021. It was even relegated from the FTSE 250 last year.
Turnaround candidate?
What about the future? Well, ChatGPT also said that if “management keeps improving margins and controlling inventory, it could be a cash machine“.
ASOS has made progress here, getting stock levels down to £400m from £1.1bn in FY22. This means customers “see fresh styles and the latest trends every time they shop“.
The net loss is also shrinking, from £339m in FY24 to an expected loss of £19.9m in FY27. If ASOS can swing back to profits, the stock could surge from under 300p today. But I wouldn’t expect it to ever become a “cash machine” given the wafer-thin margins in this industry.
One thing I do like here is that ASOS is trying some innovative things to drive sales. For example, it’s using AI to suggest complete outfits to customers after a personal stylist pilot programme significantly increased conversion rates.
Weighing things up though, I won’t be buying this stock in the hope of quitting the 9-to-5. The loss of customers and falling sales worries me. I see better opportunities in other UK shares.
The post I asked ChatGPT for a FTSE stock that could help me quit the 9-to-5. It said⦠appeared first on The Motley Fool UK.
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Ben McPoland has positions in Shopify. The Motley Fool UK has recommended Shopify. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
