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C3 AI INC. CL.A DL -,001C3 AI INC. CL.A DL -,001C3 AI INC. CL.A DL -,001

C3 AI INC. CL.A DL -,001

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C3.ai 30% Gain in the next 11 daysOK Traders. Look at the Timed Cycles on the top of my chart and the trading pattern that AI has undergone since early February. I for one am not going to let this pass me by again. Likely by Wednesday I will take a large Position as the potential for a 30% gain within 11 days is very real. I firmly believe it's worth the risk for less than 2 weeks time. The Stochastic RSI appears to be confirming this as well with the same repeating pattern. This stock is Highly Manipulated so make sure you have set Trailing Stops on your positions. As well you can see where the potential top will be so be prepared to Short near the top if you are so inclined with your trading strategy.
NYSE:AI
by grahammk
4
AIAI has found its self at the lower support of the trend. 20.42. Starting o look like a flat bottom support. This is a bearish setup. We were long a while back and we took profits in the 32s but Ai has now shown a breakout and bearish fakeout. Back at the same support. Bulls are buying this support up but in my veiw it’s on the verge of a large breakdown. For me I’m shortinf at 21 put. Loading up any pop to 20.66 area. This trade will be taken down towards 18.50 area where I’ll take some profits overall tarhet is 10$ but there will be bounces. I’m looking for a break to 18$ is next week or so. Mabey today. Looking for a bounce there back to retest 20.42 where if that happens and we reject again I’ll re add at that rejextion and bring it lower. It’s considlating at the low now looking to breakdown here in my opinion. Be ready it is a Friday so it may not happen today but I am very short
NYSE:AIShort
by Erictaylor
7
$AI Holding Support?I’ve taken a small position in NYSE:AI here as it seems to have put in a support level. In addition, the selling volume has declined quite a bit suggesting to me that sellers are pretty much done. If we have a pocket pivot in the next few days / weeks, I will bring it up to a full position size. I am using the support area as my stop guideline. If it fails, then it proves that was not a supported area. For my trading style I like the risk reward ratio here. Thanks for looking. Ideas, not investment / trading advice.
NYSE:AILong
by jaxdog
3
AI, Reversal to the UPSIDE in order..AI is consolidating at 20-22 price levels -- a strong order block support which has been tested quite a few times already. Net buying / accumulation has been spotted at the current levels forming 4H higher lows. Expect a reversal to the upside from this price point. Spotted at 22.0 TAYOR. ----------------- LAST QTR results Jan 2023 for reference: Jan 2023EPS beat by 72.57% EPS (USD) Expected -0.22 Reported -0.06 Surprise 72.57% Revenue (USD) Expected 64.25M Reported 66.67M Surprise 3.77%
NYSE:AILong
by JSAL
AI, 10d+/-77.49%falling cycle -77.49% more than 10 days. ================================================================================================================================================================== This data is analyzed by robots. Analyze historical trends based on The Adam Theory of Markets (20 moving averages/60 moving averages/120 moving averages/240 moving averages) and estimate the trend in the next 10 days. The white line is the robot's expected price, and the upper and lower horizontal line stop loss and stop profit prices have no financial basis. The results are for reference only.
NYSE:AIShort
by Tonyder
The AI bubble hasn't even started yetHello friends. We think that AI is the next big bubble, and we expect this bubble to expand into the euphoria phase through the rest of this year even as the rest of the stock market is flat to down and big names start to topple over. We think the best play for this bubble is the ticker AI since retail traders seem to love trading this ticker, which implies that it will be more volatile than the other AI names. The inspiration for my idea came (as it often does) while looking through some Wallstreetbets ideas for a monkey to fade. I saw not one, but several WSB traders who had purchased put options on AI and were posting their unrealized gains following the recent crash. This was very interesting because usually, you would expect that for a bubble like this to form, the apes would surely be long on this stock, and not buying puts or shorting. That really was not the case though. There is widespread criticism and skepticism of the AI stock bubble, and there are not many traders who are hopping on board with the trend. Fear is even being spread for this particular ticker AI in the form of reports that the company has fabricated 'misleading accounting reports'. The reaction to this "breaking news" was a sharp drop, which means that many of the panic-prone retail paper hand longs have already been killed and will no longer be around to hammer the bid, a good sign for the longs. Further evidence that traders are skeptical of this bubble comes in the form of the short interest, which is rather high at 27.5%. How can such skepticism and fear be commonplace during the peak stage of a bubble, which usually requires extreme euphoria? In terms of price and time structure, this bubble does not look like a typical complete bubble. It looks like the early phase to me. This is because, rather than seeing one massive and jarring jolt to the upside that cleans out most shorts and gets most retail traders to panic buy, we have seen a relatively slow and methodical grind upwards which has included several retracements. For us, this is a sign of a healthy meme stock bubble. Here is an example of the opposite kind of bubble, on Buzzfeed stock. As you can see, it goes STRAIGHT up, which signals that euphoria has set in and the bubble is about to burst. The trade here would be to wait for the crash to begin and then short with a stop above the high and hold onto the short for the long ride down, which would have been successful. Now, the AI ticker probably isn't a good investment. We think of it as a 'meme' stock. So of course you do not want to be holding the bag at the end of the game, which requires some risk management and means you can't average down forever. Make no mistake, this will end in tears. AI will probably trade for pennies or even be bankrupt in a few years if it follows the same path that other meme stocks have. The company is growing rapidly, but it's also burning through cash and diluting shareholders to fund that burn. We think this stock is a great play for the coming months, and we expect there to be a 'sudden massive spike' where call options print really well. Despite that, we do not want to buy calls, because the implied volatility is absurdly high which makes buying options less attractive to us. Instead, our plan is to be selling puts over the course of the next month. As we sell these puts, we will harvest a hefty premium as well as get the chance to buy some of these juicy shares at a discount. If we end up being assigned, we will sell calls to the apes and hope our shares get called away during a big spike. We highly suspect that the price will decide to sweep through these local lows and tap into the 19-handle. If this happens, we will sell a lot of puts there and build out our position. In terms of our risk management strategy, we would want to get the hell out of this name if the momentum really starts to fade on the higher time frames and not just in a short-term panic kind of way. This way, there is no potential for us to hold this stock to zero.
NYSE:AILong
by bowtrix
1
Market Manipulation? Kerrisdale's Actions Against C3.aiC3.ai's CEO Tom Siebel called out short seller Kerrisdale Capital for stock price manipulation in a recent Bloomberg interview. The C3.ai stock has been caught in a whirlwind of controversy, with Kerrisdale Capital's short position, a critical report, and a letter accusing the company of accounting fraud at the center of it all. Let's examine the inconsistencies, contradictions, and potential misleading information in Kerrisdale's report and letter, exploring whether these actions could constitute market manipulation under the existing legal framework. Disclaimer: Please remember that none of this constitutes legal or financial advice. Market manipulation is defined as "intentional conduct designed to deceive investors by controlling or artificially affecting the market for a security." The term encompasses a wide range of activities, including spreading false or misleading information, engaging in fraudulent or manipulative practices, and cornering the market. In the United States, market manipulation is prohibited under the Securities Exchange Act of 1934 (Section 9(a)(2)) and the Commodity Exchange Act (Section 6(c)(1)). To learn more about the specific laws and regulations governing market manipulation, readers can refer to the following resources: Securities Exchange Act of 1934: www.law.cornell.edu Commodity Exchange Act: www.law.cornell.edu SEC Guidelines: www.sec.gov Market Manipulation in the US Explained: www.rahmanravelli.co.uk A BIT OF BACKGROUND C3.ai, a leading enterprise artificial intelligence (AI) software provider, has been at the center of a heated controversy involving Kerrisdale Capital, a prominent investment management firm. C3.ai aims to help businesses unlock the potential of AI and data analytics to drive growth and efficiency. Kerrisdale Capital entered the scene by taking a short position in C3.ai's stock, effectively betting against the company's success. In March 2023, Kerrisdale then released a scathing report that cast doubt on C3.ai's prospects, criticizing its growth rates, competitive positioning, and management. This report led to an initial decline in C3.ai's stock price of over 20%. However, the company's stock rebounded and even reached new heights in early April, posing a significant threat to Kerrisdale's short position. In an attempt to reinforce their bearish stance, Kerrisdale published a follow-up letter in April 2023, addressed to C3.ai's auditor, Deloitte, and CC'd to the Securities and Exchange Commission (SEC). In this letter, Kerrisdale leveled serious allegations of accounting fraud against C3.ai. The publication of the letter sent shockwaves through the market, causing C3.ai's stock price to plummet by nearly 40%. EXPOSING KERRISDALE'S DECEPTIVE TACTICS IN THEIR C3.AI ASSAULT Let's dive into the inconsistencies and misleading information found in Kerrisdale's report and letter about C3.ai. By comparing these documents with C3's financial statements and relevant laws and regulations, let's investigate if Kerrisdale's allegations are unfounded and possibly manipulative. Contradictory Revenue Growth Claims: Kerrisdale's report acknowledges C3.ai's revenue growth (page 2), but the letter contradicts this by questioning the veracity of the growth figures (paragraph 2 of the letter). It is important to note that C3.ai's financial statements are prepared in accordance with US GAAP, which is subject to strict guidelines and external audits. Unbilled Receivables Misrepresentation: The report mentions the long product life cycle on page 13, which could contribute to the rise in unbilled receivables. However, in the letter, Kerrisdale questions the rise in unbilled receivables (paragraph 3 of the letter), seemingly disregarding the fact that they themselves acknowledged the long life cycle. According to ASC 606 (Revenue from Contracts with Customers) in the US GAAP guidelines, the recognition of unbilled receivables is appropriate based on the specific circumstances of a contract. On page 2 of their letter, Sahm Adrangi writes, "With the company unable to invoice 30% of its reported revenue, which just so happens to come from a related party, how exactly are you as its auditor signing off on these financial statements?" This statement demonstrates either a lack of understanding or an attempt at manipulation by Kerrisdale. Unbilled receivables do not imply that the company is unable to invoice the revenue. Instead, they represent amounts recognized under the terms of a contract but not yet billed to the customer. As per the US GAAP guidelines, specifically ASC 606 (Revenue from Contracts with Customers), companies may recognize revenue over time, even if invoices have not been issued. This scenario is common when long-term contracts or projects are involved, and the unbilled amounts are expected to be invoiced in the future as the work progresses or upon meeting certain milestones. By making such a statement, Kerrisdale misrepresents the concept of unbilled receivables and creates confusion among readers, potentially leading them to believe that C3.ai has questionable accounting practices. This misrepresentation supports the argument that Kerrisdale may have intended to manipulate the market perception of C3.ai negatively, ultimately benefiting their short position. Flawed Competitor Comparison: In the report (page 7), Kerrisdale compares C3.ai AI to Palantir and Snowflake, asserting that C3.ai's growth rates and valuation multiples are inferior. However, these companies operate in different niches within the AI and data analytics market, with varying business models and target customers. This misleading comparison fails to provide a fair assessment of C3.ai's market position. C3.ai, Palantir, and Snowflake each operate within the broader artificial intelligence (AI) and data analytics market but target different niches and offer distinct solutions. When doing a simple Google search for Palantir and its competitors, C3.ai is, in fact, nowhere to be found. Here are some short summaries of the three companies. C3.ai: Niche: Enterprise AI and IoT applications C3.ai focuses on providing AI-based software solutions for enterprise clients, with an emphasis on IoT (Internet of Things) applications. Their platform, C3 AI Suite, enables organizations to develop, deploy, and manage large-scale AI applications for a wide range of industries, including energy, healthcare, manufacturing, and financial services. C3.ai aims to help businesses accelerate their digital transformation and improve decision-making processes using AI and machine learning. Palantir: Niche: Data integration and analytics for government and commercial organizations Palantir specializes in data integration, analytics, and visualization software for government agencies and large commercial organizations. Their two primary products, Palantir Gotham and Palantir Foundry, are designed to help organizations integrate, manage, and analyze vast amounts of data from disparate sources. Palantir's solutions are particularly popular in sectors like defense, intelligence, law enforcement, and cybersecurity, where the company has a strong track record. Snowflake: Niche: Cloud-based data warehousing and analytics Snowflake offers a cloud-based data warehousing platform that enables organizations to store, manage, and analyze structured and semi-structured data. Snowflake's unique architecture allows for easy scalability, high performance, and seamless integration with various data sources and third-party services. The platform is particularly well-suited for businesses looking to transition their data infrastructure to the cloud and take advantage of modern data analytics tools. In summary, while all three companies operate within the AI and data analytics market, they target different niches and offer distinct solutions. C3.ai focuses on enterprise AI and IoT applications, Palantir specializes in data integration and analytics for government and commercial organizations, and Snowflake provides a cloud-based data warehousing and analytics platform. MISLEASING MARKET PENETRATION ASSERTION: On page 11 of their report, Kerrisdale directly mentions C3.ai company's age when referring to their alleged sub-par customer base: "...after being in business for over twelve years." This statement could be construed as manipulative or misleading. Kerrisdale's focus on C3.ai's age and customer count in comparison to Palantir and Snowflake, while intentionally not mentioning that Palantir has been in business for 20 years and Snowflake for a comparable 12 years, might give readers a false impression that C3.ai has underperformed relative to its competitors. The actual differences in customer counts are not as substantial as the comparison suggests, considering the age of the companies. By not providing a complete context, Kerrisdale may intentionally mislead readers into forming a negative perception of C3.ai's performance and growth potential, which can be seen as manipulative. The aforementioned inconsistencies and misleading information, when combined, paint a picture of either incompetence or deliberate manipulation on Kerrisdale's part. By misrepresenting facts, Kerrisdale may have intended to influence market perception of C3.ai negatively, thus benefiting their short position. Market manipulation is illegal under the Securities Exchange Act of 1934 (Section 9) and related SEC rules. Specifically, Rule 10b-5 states that it is unlawful to make untrue statements or omissions of material facts in connection with the purchase or sale of any security. A CLOSER LOOK AT INTENT Let's analyze the intent behind Kerrisdale's actions when they published the report and letter about C3.ai. Unsupported Allegations and Cherry-Picking: The letter contains allegations of accounting fraud without providing concrete evidence or a thorough analysis. Instead, it selectively highlights specific data points and aspects, potentially ignoring or downplaying counterarguments or positive aspects of C3.ai's financials. The Use of Strong Language and Rhetoric: The language used in the letter, such as terms like "accounting fraud," might be interpreted as an attempt to evoke strong emotions and reactions from readers, potentially causing them to sell their shares and further drive down C3.ai's stock price. Timing and Market Impact: Kerrisdale published the letter to C3.ai's auditor, Deloitte, CC'ing the SEC, shortly after C3.ai's stock had regained its value following the initial report. The stock lost over 20% after the release of the report on March 6th but quickly regained value and was reaching new heights (and therefore endangering Kerrisdale's short position in the stock) when Kerrisdale published the letter. This publication led to an almost 40% drop in the stock's value, significantly benefiting Kerrisdale's short position. The timing of these publications hints at a calculated effort to manipulate the market and profit from the resulting panic. Misrepresentation of Competitors and Customer Growth: Kerrisdale's misleading comparison between C3.ai, Palantir, and Snowflake can be seen as an attempt to create a false impression of C3.ai's performance. By emphasizing the differences in customer counts without providing proper context or acknowledging the distinct niches of each company, Kerrisdale intentionally leads readers to form a negative perception of C3.ai's growth potential. These companies have different focuses within the AI and data analytics market, making the comparison potentially misleading. This manipulative tactic could be intended to drive down the stock price and benefit their short position. Inconsistencies in Understanding and Presenting Financial Data: Kerrisdale's misinterpretation of unbilled receivables, and their contradictory statements in the report and letter, can be perceived as either incompetence or a deliberate attempt to mislead readers. Raising concerns about unbilled receivables in the letter while providing a possible explanation in their own report, might be interpreted as an attempt to manipulate and mislead readers. This could be seen as incompetence or a deliberate effort to confuse readers who may not be familiar with US GAAP, leading them to believe that something unusual is happening with C3.ai's financials. CONCLUSION The inconsistencies, errors, and misinformation found in their publications, coupled with the timing and market impact, make it certainly not seem impossible that Kerrisdale's intent in publishing the report and letter about C3.ai may have been to manipulate the market, capitalizing on the resulting stock price fluctuations and protecting their short position. Sources: C3 Financial Data: ir.c3.ai ir.c3.ai ir.c3.ai ir.c3.ai Kerrisdale Capital's report and letter: www.kerrisdalecap.com www.kerrisdalecap.com
NYSE:AILong
by Donfelice
2
C3.AI - Ready for the next wave upHello everyone, The letter from the Kerrisdale Capital made C3.AI plummet by 40% on possible allegations that C3.AI used agressive accounting tactics to boost it's quarterly results and improve margins on paper. Even if that is true, revenue is still revenue and each and every company uses all the possible legal ways to improve it's finances. Still, this does not immediately mean that C3 should be 40% cheaper than 3 days before. The company was way overbought and needed some cool-down, but -40% is brutal for such allegations. The $20 has been a fantastic support a few times in the past and I think that this time is no different. I am expecting heavy buying and the first TP would be $25 and then $30. After hitting $30, it all depends on the allegations being cleared as well as the overall market sentiment, so nothing can be certain past that point. If there is a heavy break below $18, $15 is next and then $10. Still, I don't think that C3 is over just yet and this is all a show to drop the company. Good luck to all!
NYSE:AILong
by donaitelo
C3.ai Stock - Quick Technical OverviewC3.ai Quick Overview The stock of the C3.ai Inc (NYSE: AI) company has been hitting the wires lately. It is a U.S. artificial intelligence enterprise, providing software-as-a-service application that enables deployment of enterprise-scale AI applications. Because of the recent increased popularity of Chat GPT, artificial intelligence became the hot topic among investors. This gave C3.ai stock a good boost, tripling the share price from the level where it was at the start of 2023. Although the performance is good, there are concerns that this recent rally might not be sustainable, as the company is still struggling to become profitable. Despite the attempts from the management to boost confidence among existing and potential investors, for now, the company is only expected to become profitable somewhere at the end of 2024. Another major issue for the company is constantly increasing competition from other tech giants such as Alphabet Inc. (GOOUSD on easyMarkets platform) and Microsoft Corp. (MSFUSD on easyMarkets platform). Microsoft is invested in the OpenAI company, which has the rights to Chat GPT, and Alphabet is set to launch its own version of A.I.-powered search engine. This makes C3.ai stock look attractive for now, however, there is doubt it may withstand the competition. From the technical perspective, the stock soared in the beginning of this week and until yesterday it was above the 30-dollar mark. Yesterday, the share price fell sharply, however managed to remain above all the EMAs on our daily chart. The price structure is still of higher highs and higher lows. If the broader stock market reverses its course to the downside, the stock might suffer greater losses. For stock trading, check out easyMarkets free guaranteed stop-loss and take-profit options. Disclaimer: easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
NYSE:AI
by easyMarkets
Debunking Kerrisdale Capital's Bearish Take on C3.aiI'm long on C3 - so I'm as biased as Kerrisdale here, but apparently, that doesn't keep people from taking their word for granted, either. I have a degree in Finance, worked at a big-four accounting firm, in the financial industry (upper management), and am now a business owner (that was too lazy to create a new account for posting this - that's why you'll find me posting all kinds of UE5 stuff, otherwise. My dirty hobby...) But I'm a hopelessly logical investor, meaning I couldn't figure out why Kerrisdale's letter to Deloitte yesterday moved the markets at all. So I needed to understand the whole situation better and digged deeper. I went through C3's financials and Kerrisdale's report and looked at their letter to the Auditor, and here are my two cents on their March 6th report and their letter to Deloitte. Apologies for the lengthy post, but it's a complex topic. It is worth questioning whether Kerrisdale's attempt to undermine C3 serves to manipulate market perceptions, particularly when considering the firm's history of short-selling and ongoing legal scrutiny. Let's start by shortly going over Kerrisdale's report from March 6th. Kerrisdale's report conveniently overlooks C3's unique value proposition and casts doubt on the company's competitive advantage. However, this dismissal seems disingenuous, given the distinct position C3 occupies in the AI software market. Contrary to the report's implications, C3's industry-specific AI solutions set it apart from the likes of IBM, Google, and Amazon. The company's focus on sectors such as energy, manufacturing, and financial services demonstrates its commitment to providing tailored solutions that address the unique challenges faced by these industries. The report also paints a bleak picture of C3's growth rates, suggesting that they are unsustainable. However, the data and industry trends tell a different story. AI adoption is in its early stages across a variety of industries, with tremendous potential for growth. The ongoing digitization of industries and the increasing demand for AI-driven solutions are good for C3's prospects. C3's ability to secure long-term contracts with major clients demonstrates the trust and satisfaction customers have in its products and services. This contradicts Kerrisdale's pessimistic outlook and raises suspicions about the firm's motives. They basically take one of C3's strengths (their ability to build long-term partnerships and client relations) and give it a negative spin. Kerrisdale's report attempts to pigeonhole C3 as a company reliant on the energy sector, potentially to create uncertainty and fear in the market. But this claim conveniently omits the company's broader diversification strategy. C3 has made significant strides in expanding into healthcare, manufacturing, and financial services, proving its ability to penetrate new markets and adapt to different industry needs. This diversification not only mitigates the risks associated with dependence on a single sector but also showcases C3's resilience and growth potential. The report also casts doubt on C3's future competitiveness by highlighting declining R&D spending. This interpretation, however, seems deliberately misleading when considering the broader context of the company's strategy and expertise. Streamlining R&D spending could be a strategic move by C3 to optimize resources and concentrate on the most promising projects. It is important to recognize that R&D spending is not always directly proportional to innovation or product development success. Moreover, C3's existing technological expertise and intellectual property provide a strong foundation for future growth. The report's attempt to misrepresent the company's R&D spending is... questionable. All in all, I'd say that C3's unique competitive advantage, growth potential, diversification strategy, and technological expertise paint a more optimistic outlook for the company's future prospects than Kerrisdale's report suggests. As AI continues to transform industries, C3's targeted offerings are well-positioned to capitalize on these opportunities, in my opinion. Of note to me is their ESG product - ESG will be a really, really big thing in the near future, especially here in the EU, in the near future. My opinion: investors and market participants should be mindful of the potential for market manipulation and misinformation, especially when considering reports from firms with questionable motives and legal standing. Let's finally move on to what caused yesterday's market movements. Kerrisdale's letter to the auditor, Deloitte. Keep in mind that this is just my take on it. But I think that my opinion is not entirely unqualified. TL;DR: Deloitte is the biggest accounting firm in the US, and it basically comes down to this: you either trust a short-seller publishing an open letter going hand-in-hand with a well-timed media campaign at a conspicuously opportune moment (C3 was about to really take off and obliterate their short position), or you trust that C3's financials, on which Deloitte signed off on, are correct. Your call. Slightly longer version: Kerrisdale Capital sent a letter to C3's auditor, raising concerns about the company's accounting and disclosure practices. The letter questions the company's revenue recognition methods, particularly for long-term contracts, and the impact on financial results. C3 has consistently provided transparent financial results, as evidenced by their fiscal Q1, Q2, and Q3 2023 reports. The company has experienced steady revenue growth and diversified its client base, showcasing a strong business model. C3's financial reports adhere to US Generally Accepted Accounting Principles (US GAAP), ensuring that revenue recognition and other financial practices are in line with industry standards. As per US GAAP guidelines, companies recognize revenue when the performance obligations under a contract are satisfied. C3's long-term contracts are structured to deliver AI software solutions and services over time, and the company recognizes revenue accordingly. It is essential to emphasize that C3's revenue recognition practices are compliant with the accounting standards and have been consistently applied across all financial reporting periods. In their own March 6th report (page 13), Kerrisdale calls out C3 for their long product cycle (6-18 months). Considering C3 is a rapidly growing company that closed bookings of about $650 million in Q3 FY 23, it's hardly surprising that "the company’s accounts receivable have ballooned", according to their letter to the auditor. With C3.ai's strong bookings performance in Q3, it is reasonable to expect a corresponding increase in unbilled receivables. This growth in receivables is a natural consequence of the company's expanding business and long-term contracts, reflecting the ongoing demand for its AI solutions. On page 13 of their report, Kerrisdale acknowledges that C3 has a long product cycle, ranging from 6 to 18 months. This admission, coupled with the growth in unbilled receivables, suggests that Kerrisdale's claims are inconsistent and contradictory. The long product cycle means that C3's revenue recognition is spread across multiple reporting periods, which naturally leads to a growth in unbilled receivables. This growth aligns with US GAAP guidelines. The contradictory nature of Kerrisdale's claims raises questions about their understanding of US GAAP or their willingness to misrepresent financial information intentionally. It is essential to consider the possibility of malicious intent, particularly in light of the firm's ongoing legal scrutiny and history of short-selling. The US Department of Justice and the SEC are currently investigating dozens of firms, including Kerrisdale Capital, for potential market manipulation through short-selling schemes. I found relatively little information on this, but little or unsubstantiated information apparently suffices. I quoted one of several articles earlier in this post. Given this backdrop, Kerrisdale's claims regarding C3's accounting and disclosure practices might be an attempt to manipulate market sentiment and cast doubt on the company's financial integrity. In light of the transparent financial results provided by C3 and the company's adherence to US GAAP guidelines, Kerrisdale's claims regarding accounting and disclosure issues appear to be unfounded. In conclusion, C3.ai's growth in unbilled receivables is a plausible outcome of its strong Q3 bookings performance and long product cycle. Kerrisdale's contradictory claims and potential misunderstanding or manipulation of US GAAP guidelines warrant skepticism and caution, IMO. I expect Deloitte to back up C3 in their FY 23 audit opinion, voiding Kerrisdale's claims. I think the whole thing is a well-executed publicity stunt by a short-seller that was facing serious trouble from the stock being about to take off. I would have done it the same way. Even including the SEC, which is/was investigating Kerrisdale, in their letter is a bold move, but implying regulatory action/fraud, is exactly what Kerrisdale needed to "cover their ass" here and get the much-needed market reaction. Hats off to them, textbook execution. So that's it. Thanks for reading, if you even made it this far. Make of it what you want, as I'm as biased as Kerrisdale on this.
Editors' picks
NYSE:AILong
by Donfelice
29