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- 1 AI Stock rallied 170.71% in six months and 233.95% YTD.
- 2 C3.ai Inc. stock needs help with customer base and revenue consistency.
As the buzz around Artificial Intelligence (AI) calmed down, C3.ai (NYSE: AI) reported a remarkable year, with AI Stock rallying 233.95% YTD. Headed and founded by Tom Seibel, the company faced scrutiny from tech analysts for multiple reasons. Yet, investors are bugged by the Fear Of Missing Out (FOMO) for investing in AI stocks, foreshadowing growth in the sector.
C3.ai Inc. (AI Stock): Financial Analysis
The enterprise software company offers solutions for data analysis, customer relationship management tools, etc. Previously called C3 Energy Management, C3 IoT is facing problems finding a working business model.
When oil prices were high, they ventured into the energy business. The buzz around Internet of Things (IoT) devices led them into the arena and the recent AI frenzy pulled them here.
The recent development in artificial intelligence and the buzz around it made AI Stock soar 107.22% in three months, 170.71% in six months, and 233.95% YTD. If the rally continues, C3.ai Inc. can have a spot at the big league players’ table of the artificial intelligence industry.
However, a significant concern for the company is its customer base and consistency in revenue growth. Data suggests that the subscription revenue remained relatively flat in the last quarters. Even though the profits were raised, they were subpar compared to industry standards for other related companies.
C3.ai Inc. (NYSE: AI): Technical Analysis
At press time, AI Stock is trading at $38.17 with a jump of 0.37%; previous close and open were at $38.03 and $38.50, respectively. The 52-week range is from $10.16 to $48.87, indicating that a strong push could create new highs. With an average volume of 24.79 Million, the market cap is $4.413 Billion.
The trailing twelve-month (TTM) earnings per share (EPS) is -$2.35. Analysts placed a price target at $24.55 with a downside of 35.7% and provided a 1.92 rating to reduce.
C3.ai reported its last earnings on May 31, 2023, where the reported revenue of $72.41 Million exceeded the expected value of $71.317 Million by 1.53% – compared to the previous quarter, the revenue swelled by 0.13%.
At the same time, the reported earnings of -$0.13 per share surpassed the estimated value of -$0.169 by 23.28%. Also, the EPS gained 38.10% when compared to the previous quarter.
Despite positive earnings, the AI share price fell 22.03% in the following sessions before bouncing back up. The subsequent earnings will be reported on August 31, 2023, where the earnings shall be -$0.173 per share, and revenue should be $71.565 Million.
The (TTM) revenue is $266.8 Million, and the year-over-year (YoY) quarterly revenue growth is a mere 0.10%.
The operating expenses grew 8.35% to $120.78 Million while operating margins fell by 108.88%. Net income decreased 11.19% to negative $64.69 Million, the net profit margin is down by 11.05% to -89.71, and the profit margin stumbled by 100.77%.
The total cash in hand at the end of the most recent quarter (MRQ) is 730.98 Million, while the total debt is $39.66 Million.
C3.ai Inc. (AI Stock): Candle Exploration
Since mid-May 2023, AI Share price has been in a relative uptrend after some downswings. However, the last significant fall was substantial as, despite two separate attempts, the price could not cross R1 at $42.68. The upward trajectory of EMA hints at a price jump, and an RSI of 50.71 indicates strength.
Experts argue that the price shall consolidate in the expected range for some time. A bullish momentum can be seen if the price crosses R2 at $48.50. At the same time, a downward momentum shall occur if the price falls below S2 at $25.07. However, a drop below S1 at 32.33 could reverse as well.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
