C3.ai (NYSE: AI) is leading the Enterprise AI industry, providing software to accelerate digital transformation. Global enterprises use its C3 AI platform in different industries to provide comprehensive services. They can create more efficient and cost-effective AI applications than the alternatives.
C3.ai Recent Stock Performance
C3.ai stock was on an upward trend during the Tuesday trading session, surging over 10.8% during morning trading. The upward trend is part of what is colloquially known as the Santa Claus rally. It is when markets experience an upward trend during the holidays. It is often attributed to optimism and year-end tax considerations for investors and funds.
Another contributing factor is the December 2023 Fed meeting. The Fed committee signaled that they may cut rates in the next three quarters, aligning with market expectations. It could pave the way for a soft landing for the economy. The Fed hopes inflation is brought to heal without any major impact that might upend consumer demand. For tech-related firms, which often operate on net losses for years, lower rates could help them access cash flow. Consequently, it could positively impacting their stock valuation.
Commenting on the recent earnings report, CEO Thomas M. Siebel said,
“In the trailing four quarters, we have seen top-line year-over-year revenue growth increase from -4% in Q3 FY23, to 0% in Q4 FY23, to 11% in Q1 FY24, to 17% in Q2 FY24.”
Oppenheimer Adds C3.ai to Prestigious List
Another reason why AI stock surged 10.8% on Tuesday may be its addition to Oppenheimer’s list. The list included recommended stocks for ownership in 2024. The brokerage and investment bank’s research department added several AI stocks to its recommended list. Oppenheimer believes data collection and model training would help drive revenue growth for the AI sector in H2 2024. That could benefit C3.ai and others working on AI. Others included in Oppenheimer’s list were giants like Microsoft and Cloudflare.
Should you Consider AI in 2024?
Oppenheimer’s remarks mirror those of C3.ai CEO Thomas Siebel, who is optimistic about C3.ai’s products despite lackluster quarterly results. According to the CEO, there is “unprecedented interest and traction in our generative AI offerings.”
AI stock is up by 184.09% YTD. The stock is worth $31.74, below its all-time high of $46.23%, achieved in June 2023. Moreover, in the recent second-quarter fiscal report, the company saw a 17% rise in revenue.
Despite the revenue growth, the company is still hemorrhaging cash. Its revenue and operating losses outlook remain unchanged. C3.ai projects revenue of $295 million-$320 million and adjusted loss of $115 million-$135 million. However, the company reported an 81% increase in customer engagement.
Based on Oppenheimer’s recent recommendation, investors should consider adding the stock to their portfolio.
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.
One thought on “Will C3.ai, Inc. (NYSE: $AI) See New Highs in 2024?”
Comments are closed.