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C3.ai - AI Stock Analysis

Analysis generated May 4, 2025

C3.ai is a leading enterprise AI software provider, offering an array of AI solutions that help organizations transform their business operations. By leveraging advanced AI models and machine learning algorithms, C3.ai aims to unlock the full potential of big data. The company's platforms include C3 AI Suite, which is a comprehensive suite designed to support the full AI lifecycle, and industry-specific applications targeting areas like energy management, fraud detection, and predictive maintenance.

Fundamental Analysis

Revenue: C3.ai reported a revenue of $99 million for the last quarter, a 4.71% increase compared to the previous quarter. This sequential growth is a positive indicator of the company's short-term performance. Additionally, the revenue shows a significant year-over-year increase of 26.00%, underpinning the company's long-term growth trajectory.

Net Income: The last quarter's net income stood at $80 million, reflecting a concerning 21.57% decrease from the previous quarter. When compared to the same quarter last year, there is also a 10.42% decline. These negative trends indicate potential operational challenges or increased expenses that could hurt profitability moving forward.

EBITDA: For the last quarter, EBITDA was reported at $84 million, which is a decrease of 16.80% from the previous quarter and a 6.51% drop year-over-year. These numbers mirror the decline seen in net income, suggesting that the company's core operations are facing headwinds.

Insider Activity: In recent months, several company insiders have sold their stock. This insider selling is a potentially bearish signal, as it might suggest a lack of confidence in C3.ai's future performance from those who know the company best.

Technical Analysis

Stock Price: C3.ai's current stock price of $22.48 shows a robust 18.38% increase from a month ago, indicating a strong short-term bullish trend. However, the stock price has decreased by 6.49% compared to a year ago, which raises concerns about longer-term performance.

SMA10: The Simple Moving Average over 10 days (SMA10) is $22.41, slightly up from the previous value of $22.37. This minor uptick corroborates the current bullish trend in price movement.

RSI: The Relative Strength Index (RSI) stands at 74, indicating that the stock is in overbought territory. Historically, an RSI above 70 often signals a potential bearish reversal as the stock may be overvalued and due for a correction.

Alternative Data Analysis

Job Postings & Employee Sentiment: According to the most popular job boards, C3.ai currently has 104 open positions, down by 33% over the last couple of months. This reduction in job openings may indicate efforts to cut costs or improve margins, potentially a red flag for a company in growth mode. Employee sentiment remains neutral, neither strongly bullish nor bearish.

Customer Acquisition: C3.ai's webpage has garnered an estimated 310,000 visitors, up by 7% in recent months. This uptick in web traffic is a bullish indicator, suggesting increased customer interest and potentially higher future customer acquisition rates.

Customer Engagement: C3.ai has 30,000 followers on Twitter, with no change over the last couple of months. This stagnation in follower growth could indicate a plateau in public interest, possibly reflecting broader market sentiments.

AI Score: According to AltIndex's AI-driven analysis, C3.ai has an AI score of 60, suggesting a hold signal. This score integrates fundamental, technical, and alternative data, advocating neither a strong buy nor a sell recommendation.

Conclusion and Recommendation

C3.ai presents a mixed bag of indicators. While revenue growth remains strong and the technical analysis signals a bullish trend in the short term, the underlying fundamentals, particularly net income and EBITDA declines, are a cause for concern. Insider selling and reductions in job openings further add to the cautious outlook. The AltIndex AI score of 60 reinforces a conservative approach. Hence, it is recommended to hold the stock, keeping a close watch on future earnings reports and market conditions for any signs of turnaround or deterioration.

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.