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C3.AI INC-AC3.AI INC-AC3.AI INC-A

C3.AI INC-A

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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
Bias more on upside for C3.ai1st April 2023 Bias more on upside till Resistance area. ($42-$52) Huge jump up last Friday with 21% increased. Thanks to Kerrisdale Capital who Shorted C3.ai (AI) Shares mentioned on 29 March 2023. Assuming the price high on 29 March is at $26, they will be in trouble as for now. Assuming if they cut their losses by buying back C3.ai price from the market, they are truly experience short squeeze. Seller turn buyer fueling more oil for the bull this time round. This may be a reason to shoot up C3.ai on last Friday.
NYSE:AILong
by probabilityta
AI - Breakout Falling Trend [MIDTERM]- AI has broken through the ceiling of a falling trend channel in the medium long term. - AI has given a positive signal from the rectangle formation by a break up through the resistance at 21. - Further rise to 28 or more is signaled. - AI has marginally broken down through support at 23. - An established break predicts a further decline. - Volume has previously been high at price tops and low at price bottoms. - Volume balance is also positive, which strengthens the stock. - Overall assessed as technically neutral for the medium long term. *EP: Enter Price, SL: Support, TP: Take Profit, CL: Cut Loss, TF: Time Frame, RST: Resistance, LT TP: Long Term Target Price Verify it first and believe later. WavePoint ❤️
NYSE:AI
by wavepoint99
headed toward multitimeframe long term resistancethis stock has exploded to the upside, retraced a decent consolidative amount, and taken aim for that high. there is a large uptick in the fair value calculation that makes this a strong bullish move. there are different scenarios. one is that we set a lower high on an overbought 4 hr level. another is that we go straight for the high and taper off, and the other is that we break the highs and head for the long term area high right over $34.
NYSE:AILong
by cerealpatterns