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C3.ai - AI Stock Analysis

Analysis generated May 26, 2025

C3.ai, Inc. (NYSE: AI) is a leading provider of enterprise artificial intelligence (AI) software. The company offers AI and machine learning solutions to a wide range of industries, including energy, financial services, manufacturing, telecommunications, and more. Founded by Tom Siebel, C3.ai is committed to revolutionizing how organizations harness data to improve operational efficiency, reduce costs, and drive innovation.

Fundamental Analysis

The most recent financial data for C3.ai reveals a mixed bag of results. The revenue for the last quarter was $99 million, representing a 4.71% increase compared to the previous quarter and a 26.00% increase compared to the same quarter last year. These figures suggest a positive growth trajectory in terms of revenue.

However, the net income for the last quarter was -$80 million, which shows a 21.57% decline from the previous quarter and a 10.42% decrease compared to the same quarter last year. This continued negative net income is concerning and indicates that the company is struggling to manage costs effectively.

The EBITDA for the last quarter was -$84 million, also showing a decline of 16.80% compared to the previous quarter and a 6.51% decrease year over year. This decline further highlights the company’s challenges in terms of profitability.

In addition to these financial metrics, recent insider selling activity could be interpreted as a bearish signal, suggesting that even those closest to the company may have reservations about its short-term potential.

Technical Analysis

Today's stock price stands at $22.72, which reflects a 0.58% increase compared to a month ago. While this short-term uptick is promising, a year-over-year comparison shows a decline of 5.49%, indicating potential long-term issues. The current trend appears to be bearish.

The Simple Moving Average (SMA10) is currently at $23.01, lower than the previous SMA10 of $23.16. This decline suggests a possible downward trend in the stock price. Additionally, the Relative Strength Index (RSI) is at 90, signaling a potentially overbought market condition and possibly pointing toward a short-term price downturn.

Alternative Data Analysis

Examining alternative data, including job postings and employee sentiment, provides further insights. C3.ai currently has 87 open positions, a 32% reduction in the last couple of months. This reduction may signal cost-cutting measures rather than growth.

Employee sentiment towards the business outlook is neutral, indicating that while there are no glaring concerns, there is also no strong sense of optimism among employees.

Web traffic data shows an estimate of 190,000 visitors to the company's webpage, down by 56% in recent months, suggesting a possible loss of customer interest or acquisition. Social media engagement remains stagnant with 30,000 Twitter followers, showing no growth over the last couple of months.

Lastly, according to AltIndex’s AI score, C3.ai holds a score of 50, which suggests a "hold" signal based on an aggregated analysis of fundamental, technical, and alternative data.

Conclusion and Recommendation

In conclusion, while C3.ai shows positive revenue growth, significant concerns arise from declining net income and EBITDA. The recent bearish trend in stock price and insider selling activity further add to the caution. Alternative data, including job postings, web traffic, and social media engagement, allude to potential underlying issues affecting the company's growth and customer acquisition efforts.

Given the mixed signals from fundamental, technical, and alternative data analyses, the most prudent recommendation at this juncture is to hold the stock. Investors should closely monitor financial performance in upcoming quarters, especially focusing on profitability and customer engagement metrics, to reassess the investment thesis.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.