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C3.ai - AI Stock Analysis

Analysis generated February 15, 2025

C3.ai is a leading provider of Enterprise AI software for accelerating digital transformation. Their model-driven architecture leverages advanced machine learning and artificial intelligence to help organizations optimize efficiency, reduce costs, and innovate faster. As pioneers in the AI space, C3.ai's platform is employed across various sectors, including manufacturing, financial services, and energy, to name a few, showcasing the adaptability and value of its solutions.

Fundamental Analysis

Examining the financial health of C3.ai, the revenue for the last quarter was $87M. This represents a modest increase of 0.72% compared to the preceding quarter and a substantial 20.52% growth year over year. The rise in revenue is a positive indicator of the company's sales growth and market expansion.

Net income for the last quarter was $63M. This is an increase of 13.85% compared to the previous quarter and a 2.38% growth year over year. The growth in net income suggests operational efficiency and better cost management strategies.

The EBITDA for the last quarter was $69M, marking a 13.55% increase quarter over quarter and a 2.21% increase year over year. A healthy EBITDA growth supports the company's robust performance and profitability at the operational level.

However, it is important to note that in the last couple of months, several company insiders have sold their stock, potentially signaling bearish sentiment among those most familiar with the company. Insider selling can sometimes indicate that the insiders believe the stock is overvalued or face some headwinds ahead.

Technical Analysis

Today's stock price for C3.ai is $31.56. Compared to a month ago, this represents a slight decrease of 0.54%, which might raise some concerns in the short term. However, on a longer time horizon, there has been a 9.85% increase compared to a year ago, suggesting a positive long-term trend.

The trend in the stock is currently bearish. The SMA10 (Simple Moving Average over 10 days) is 32.97, lower than the previous SMA10 of 33.23. This pattern suggests a potential downward trend in price movement. Additionally, the Relative Strength Index (RSI) is at 72, indicating an overbought condition, which is often viewed as a bearish signal.

Alternative Data Analysis

From an alternative data perspective, C3.ai's job market activity shows a decrease in open positions. According to data from the most popular job boards, C3.ai has 142 open positions, down by 10% in the last couple of months. This reduction might indicate the company’s efforts to cut costs or improve margins, potentially signaling a cautious approach to expansion.

The business outlook among employees at C3.ai is deemed neutral, suggesting neither strong optimism nor pessimism among the workforce.

In terms of customer acquisition, C3.ai has witnessed an increase in estimated website visitors—up by 38% to 430,000 in the last couple of months. An uptick in web traffic is a bullish trend, indicating growing interest and potentially increasing customer base.

Customer engagement on social platforms is steady, with C3.ai maintaining 30,000 followers on their Twitter page without any significant change. Lastly, the AltIndex AI score, which predicts stock price based on various datasets, assigns C3.ai a score of 63, indicating a buy signal.

Conclusion and Recommendation

Overall, C3.ai showcases solid fundamental performance with increasing revenue, net income, and EBITDA, alongside a positive long-term price trend. However, short-term technical indicators and insider selling point towards potential caution. Alternatively, the rise in website visitors suggests positive customer engagement and acquisition momentum. Balancing these insights, the stock holds a favorable outlook, supported by an AltIndex AI score of 63, advising a buy recommendation.

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.