2024-06-28 11:12:14 ET
Summary
- I'm neutral on C3.ai, Inc. because, despite its impressive cash reserves and debt-free status, the company is overvalued.
- Although C3.ai projects solid growth, its non-GAAP gross margins are compressing, and the company's losses remain substantial.
- At 7x sales, how much more multiple expansion can investors expect? I can't recommend this stock.
Investment Thesis
C3.ai, Inc.'s ( AI ) investment thesis has enough for both sides of the argument. Needless to say, a compelling story comes into play. But also, the fact that C3.ai has no debt and nearly 20% of its market cap is made up of cash, can't be brushed away....
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C3.ai: Riding The AI Wave, With Fading Margins? Not I