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C3.ai: Unwarranted Reaction

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  • C3.ai's revenue growth returned to 21%, with 71 new agreements and 51 pilot deals, indicating strong future growth despite market dissatisfaction.
  • Despite slightly missing Wall St. estimates, C3.ai's FQ2 guidance still shows 24% YoY growth, with a strong history of beating targets.
  • The stock now trades below the low-end price target range, offering up a Strong Buy signal.
AI software companies already have wild reactions to earnings reports, and C3.ai, Inc. (NYSE:AI) didn't help their case with guidance slightly below targets. The AI software company is actually reporting accelerating growth and the fastest growth rates since switching the business model to consumption-based, but the stock market isn't happy. My investment thesis is back to ultra-Bullish on the stock following the negative reaction to earnings.

Read the full article on Seeking Alpha. 

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

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