2024-05-23 16:00:00 ET
Summary
- Market sentiments surrounding C3.ai have improved drastically, probably due to the CEO's insights on profit margin improvements and growing adoption of generative AI SaaS offerings.
- Thomas Siebel has tentatively guided break-even operations by 2025, with the management potentially reporting a blowout FQ4'24 earnings call.
- The same optimism has also been observed in the recovery of its stock valuations/ prices, with PLTR's excellent FQ1'24 earnings call lending strength to the generative AI SaaS investment thesis.
- However, C3.ai's high short interest, massive volatility, and consistent shareholder dilution deter our rating upgrade for now.
- In this case, we believe that it is better to be late to its potential upward rally, than to suffer uncertain capital losses.
We previously covered C3.ai ( AI ) in March 2024, discussing its FQ3'24 earnings results in depth, with the stock's inflated levels offering interested investors with a minimal margin of safety, despite the raised FY2024 guidance, growing customer engagement, and long-term generative AI tailwinds....
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C3.ai: CEO Offers Deep Insights On Profitability - Still Not A Buy