C3.ai: I Can't Think Of A Better Buy The Dip Play

Apr. 05, 2022 1:10 PM ETC3.ai, Inc. (AI) StockAI28 Comments
Gary Alexander
31.2K Followers

Summary

  • Shares of C3.ai have seen their value drop by 85% since its IPO early last year.
  • Meanwhile, fundamentals have not deteriorated. The company continues to showcase strong ~40% y/y growth.
  • Perhaps more important, C3.ai's customer base has significantly expanded since its IPO (when it had only 50 customers), eliminating diversification risk.
  • The stock's ~5x forward revenue multiple severely undervalues a company of this growth and technology profile.

C3.ai

hapabapa/iStock Editorial via Getty Images

The tech correction that has picked up steam over the past few months was certainly driven by a need for valuation correction, but in some cases, the severe reaction we've seen has gone too far. Such is

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This article was written by

31.2K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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