IB Net Payout Yields Model

C3.ai: The Pullback Is An Opportunity, Accounting Allegations Appear A Stretch

Update - Apr. 24, 2023
This negative call doesn't add up. Enterprises are looking to spend more on AI and pull back in other areas. The stock appears headed straight to $14 now. 

-C3.ai (NYSE:AI) stock fell more than 5% on Monday as investment firm Wolfe Research downgraded the enterprise software company, citing concerns about spending.

-Analyst Joshua Tilton lowered his rating on C3.ai (AI) to underperform from peer perform, while setting a per-share price target of $14, noting that there are "significant risks" to fiscal 2024 revenue growth, as spending budgets are likely to be impacted by a "negative macro outlook."

-Additionally, Tilton noted that companies are continuing to consolidate their spending on software, "which in our view, threatens the uptake of C3.ai’s newly introduced consumption model."
Finviz Chart

Original article posted on Apr. 6
  • 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 » 
After surging to recent highs above $30 at the close of the first quarter, C3.ai (NYSE:AI) has dropped due to serious accounting allegations from an investment firm short the stock. Naturally, the stock plunged on the alleged accounting

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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