Out Fox The $treet

Update - Apr. 9, 2026 Palantir investors that didn't sell the stock at $200 face a precarious cliff at $130 here. The stock still trades at 40x forward sales and not much support down until $50.  Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Original article posted on Feb. 16 Palantir Technologies has already fallen substantially due to enterprise AI software stocks factoring in AI risk. PLTR reported impressive 70% growth in Q4, but the stock traded at over 100x sales at the peak. Claude Code from Anthropic is suddenly an AI threat due to coding skills, while the company is now bigger than Palantir. The stock still trades at 43x forward sales, while premium software stocks in IGV trade at less than 10x forward sales. Not long ago,  Palantir Technologies, Inc.  ( PLTR ) appeared invincible. The stock soared to nearly $210, and investors appeared unconcerned about val...

Update - Sept. 4, 2025 C3.ai still hasn't explained the reason for so much sales to just disappear during FQ1 while the FQ2 guidance for $72-$80M is only a small bounce back. The enterprise AI software company did announce a promising new CEO is a sign this could be the bottom.  -FQ1 Non-GAAP EPS of -$0.37 misses by $0.16. -Revenue of $70.26M (-19.4% Y/Y) Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Original article posted on July 1 C3.ai is experiencing strong overall growth, especially in professional services, but subscription revenue growth remains muted and needs improvement for stronger investor confidence. The company’s partnership with Microsoft Azure and a major U.S. Air Force contract expansion highlight significant future growth catalysts and validation of its AI solutions. Despite persistent operating losses, C3.ai’s robust $743 million cash balance and low EV/Sal...

Update - May 28, 2025 C3.ai reported a FQ4 beat, but subscription revenues only grew 9% with all of the growth coming from prioritized professional services.  -Q4 Non-GAAP EPS of -$0.16 beats by $0.04. -Revenue of $108.72M (+25.5% Y/Y) beats by $1.02M. FY26 guidance is a very wide range with the suggestion the low end is due to geopolitical risks, though those risks have disappeared of late. The guidance suggests revenues of $464 million versus consensus estimates around $466 million for growth of 20%.  Original article posted on May 21 C3.ai, Inc. trades back at yearly lows despite reporting strong growth in the last year. The enterprise AI software company has a ramping set of pilot deals and a surge in potential new agreements due to an AI partnership with Microsoft Azure. Despite current losses, C3.ai maintains a robust cash position and is prioritizing customer acquisition over immediate profitability to capture the generative AI opportunity. AI stock is cheap, trading at...

Update - Dec. 19, 2023 C3.ai appears set for another breakout. The stock gets expensive really quick.    Original article posted on Dec. 7 C3.ai, Inc. announces quarterly results that miss consensus estimates, marking three consecutive quarters without growth. The enterprise AI software company is focused on building its pipeline and increasing customer engagements, but the market remains skeptical due to the shift in its business model. C3.ai stock is inching towards the buy range at 8x EV/S targets. After the close,   C3.ai, Inc.  ( NYSE: AI ) announced  quarterly results  that missed consensus estimates. The AI enterprise software company hasn't reported growth in the last 3 quarters after shifting the business model towards consumption. My  investment thesis  is more Neutral on the stock with the additional dip in after-hours trading and the building momentum in the pipeline. Read the full article on Seeking Alpha.  Disclosure: No positi...

Updated - July 11, 2023 Investors should use this opportunity to exit C3.ai at the highs on AI hype.  Original article posted on June 28 C3.ai, Inc. disappointed the market with lack of long-term financial projections at 2023 Investor Day. The enterprise AI software company is only forecasting around 15% revenue growth this FY despite all the AI momentum. The stock already trades at 12x FY24 revenue targets, suggesting downside risk on C3.ai failing to ramp up growth. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   As discussed previously,  C3.ai, Inc.  ( NYSE: AI ) hasn't delivered on the artificial intelligence, or AI, hype while the stock has soared this year. The enterprise AI software company hosted  2023 Investor Day  last week and provided  limited financial detail to support the recent AI hype rally. My  investment thesis  remains Neutral on the stock after...

This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Update - June 23, 2023 C3.ai has fallen back to earth after the Investor Day meeting. The Deutsche Bank analyst call on the meeting suggests the company still isn't ready to produce actual numbers from the generative AI demand.  C3.ai ( NYSE: AI ) shares  fell more than 8%  on Friday after investment firm Deutsche Bank reiterated its sell rating on the enterprise software company after it held its investor meeting. Analyst Brad Zelnick said the event "left a lot to be desired" as there were  no details on financials, "limited" updates on the company's operations and investors did not really attend the event, despite it being positioned as for them. "While we appreciate the vast opportunity presented by AI, the event did nothing to ease our skepticism on the true differentiation of the company's platform, its traction with custome...

Update - Mar. 2 C3.ai didn't report a great quarter in the sense the quarterly revenues were down, but the AI company did guide to a rebound in revenues.  Q3 Non-GAAP EPS of -$0.06  beats by $0.16 . Revenue of $66.66M (-4.5% Y/Y)   beats by $2.41M . Subscription Revenue: Subscription revenue for the quarter was $57.0 million, constituting 85.6% of revenue. Q4 Outlook: Total revenue $70M-$72M vs. consensus of $69.85M, Non-GAAP loss from operations ($24) - ($28)M. Original article posted on Feb. 14 C3.ai soared on the hype surrounding any business related to AI. The enterprise AI software company traded down to irrational levels to end 2022 due to weak short-term results from a switch in the pricing model. Even after the big rally, the stock only trades at just 4.5x EV/FY24 sales targets. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   The stock of  C3.ai  ( NYSE: AI ) was dumped b...

Jive Software easily beat Q1'15 analyst forecasts. The business collaboration software firm is finally starting to gain traction with customers via new apps with lower prices points. The stock is on the verge of breaking a long three-year downtrend. When Jive Software (NASDAQ: JIVE ) went public back at the end of 2011, the company was proclaimed as the social platform for the business community. Jive though failed to gain critical mass and still today hasn't reached 1,000 customers. Read the full article on Seeking Alpha. Disclosure: Long JIVE. Please review the disclaimer page for more details.