C3.ai: AI Hangover Hasn't Crashed The Stock

Jul. 31, 2024 8:30 AM ETC3.ai, Inc. (AI) Stock, , , , , 9 Comments
(8min)

Summary

  • C3.ai investors have suffered from a Generative AI hangover as the market rotated to small caps.
  • Despite that, AI's bottom in April 2024 has remained robust, mitigating bearish sentiments.
  • Acceleration in revenue growth in FQ4 justifies its business model. Solid increased bookings and diversified pilots corroborate the bullish case.
  • Weak profitability remains a significant headwind, although pessimism is likely priced in.
  • I explain why C3 stock could reignite its rally as industry tailwinds and AI hype seem far from overdone. Read on.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »
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J Studios

C3: Software Stocks Under Pressure

C3.ai, Inc. (NYSE:AI) investors have endured a challenging few months, even as the enterprise AI company's stock recovered remarkably from its April 2024 lows. SaaS stocks came under pressure in May 2024 following

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

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He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NOW, IGV, CRM 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.

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