C3.ai: Trough Quarter
Update - Apr. 4, 2023
The short attack is here with Kerrisdale Capital attacking the accounting of C3.ai right after the stock soars into the quarter end. The stock already wasn't as appealing back above $30. The accounting questions appear a stretch, but the company has regularly replaced the CFO in the last 4 years.
- C3.ai (NYSE:AI) fell 12% after Kerrisdale Capital, which released a short report on the company last month, wrote a letter to the company's auditor outlining its concerns.
- Kerrisdale, run by Sahm Adrangi, sent a letter to Deloitte & Touche, highlighting its concerns with alleged accounting issues at C3.Ai.
Update - Apr. 2, 2023
C3.ai had a huge rally to end March likely due to fund managers piling into the stock to report a position at quarter end. The move appears silly but the stock is officially in breakout mode above $30 here. Even SoundHound Ai (SOUN) rallied 40% on Friday.
- C3.ai (NYSE:AI) shares surged by more than 21% Friday as investors poured into the artificial intelligence stock on the last day of the first quarter of the year.
- More than 61M shares of C3.ai (AI) had been exchanged by the time U.S. stock markets closed--more than three times the 19.2M shares that trade hands on an average day.
Original article posted on March 3.
- C3.ai, Inc. reported a solid earnings beat, though revenues dipped 5% from last year.
- The enterprise AI software company made great progress in shifting to the consumption-based pricing model, with strong growth in customers and pilot programs.
- The stock is still relatively cheap at a forward EV/S multiple below 6x, but investors shouldn't chase C3.ai higher on hype.
C3.ai, Inc. (NYSE:AI) just reported a quarter where revenues fell YoY, yet the stock is soaring. The enterprise AI software company has jumped with all of the generative AI chat hype, but C3.ai reported a trough revenue quarter, likely sending the stock higher. My investment thesis remains Bullish on the stock, though I am not too excited about chasing the enterprise AI software business higher.
Read the full article on Seeking Alpha.
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