C3.ai: Time To Take A Chance

Jul. 15, 2022 6:53 PM ETC3.ai, Inc. (AI) StockAI4 Comments
Gary Alexander
31.2K Followers

Summary

  • After falling more than 40% this year, C3.ai has seen its enterprise value fall to just $1 billion.
  • This is a massive decline for what used to be one of the tech sector's hottest trades.
  • Wall Street is primarily concerned about large losses as well as the expectation of a growth slowdown in FY23.
  • While these are certainly valid risks, the stock's cheap ~3x forward revenue valuation is too enticing to ignore.

C3.ai

hapabapa

I can't stress this enough: it's time to put your chips on the tech sector again. We've seen a sharp reversal from buying everything in the tech sector without regard to fundamentals and valuation in 2020 and 2021, to indiscriminately selling

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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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