2023-04-05 11:18:02 ET
There has been lots of excitement surrounding artificial intelligence (AI) this year. And one stock that can stand to benefit a lot is C3.ai (NYSE: AI) , which -- as its ticker symbol suggests -- is big on AI and provides services relating to it. If you're thinking of investing in the stock, there are three things you'll definitely love about C3.ai -- and one thing you probably won't.
A big risk with companies in their early growth stages is that they're often burning through cash, which can lead to stock offerings and dilution. And cash burn is a problem that C3.ai has been dealing with: Over the trailing 12 months, operating cash burn has been just under $156 million.
But the company is in a good financial position and able to absorb that type of cash burn for multiple years. As of the end of January, cash and short-term investments totaled more than $772 million. And management is optimistic that by the end of fiscal 2024 (its year ends in April, so we're talking about the spring of 2024), its operations will be cash-flow positive.
For further details see:
3 Things C3.ai Investors Should Love About the Stock (and 1 Thing They Shouldn't)