PLTR - C3.ai Fiscal Q4 Earnings Preview: Growth Is Slowing (Again)
2024-05-28 11:04:41 ET
Summary
- C3.ai, Inc. is experiencing decelerating growth and I believe it lacks a unique value proposition in a competitive AI market.
- The company's transition to a consumption-based model may lead to further unpredictability in revenue.
- C3.ai's revenue growth is slowing down compared to other AI companies, and its valuation metrics suggest the valuation is rich.
Investment Thesis
Even with the high-demand in the enterprise AI sector, C3.ai, Inc. ( AI ) appears to be seeing decelerating growth, offering what I believe to be no assurance that it can reaccelerate from business transformational challenges that have plagued them. When the company was founded , the company's goal was to address carbon emissions before rebranding multiple times, including a shift from C3 IoT to C3.ai. They attempted to align their operations with various market trends without a consistent focus, in my observation. I think that such pivoting from environmental focus to a broader AI narrative suggests a potential lack of a definitive core business direction that may highlight a lack of focus on a clear value proposition....
C3.ai Fiscal Q4 Earnings Preview: Growth Is Slowing (Again)