C3.ai: The Pullback Is An Opportunity, Accounting Allegations Appear A Stretch
- C3.ai has seen a major pullback providing an opportunity to own a compelling AI story.
- The enterprise AI software company was accused of misleading accounting reports by Kerrisdale Capital Management.
- The firm short the stock sent a letter to Deloitte & Touche LLP demanding the accounting firm confirm the accounting issues or resign from the FY23 audit.
- The stock is compelling at ~5x forward EV/S targets, though C3.ai has extra risk with these accounting irregularities allegations.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »