C3 AI shares: Does the artificial intelligence company have a future?
C3 AI shares. C3 AI is a leading provider of artificial intelligence software (Enterprise AI) specializing in applying artificial intelligence in the business domain. The company’s C3 AI platform enables customers to create and deploy various AI applications, including energy production, financial services, healthcare, manufacturing processes, and many other areas of business operations. C3 AI solutions help organizations improve efficiency, reduce costs, enhance customer service, and adapt more quickly to changing market conditions.
The C3 AI platform maintains connections with pre-built, configurable, high-value artificial intelligence applications to support reliability, fraud and money laundering detection, sensor network monitoring, supply chain optimization, energy management, and more. The company was founded in 2009 by Tom Siebel, former founder and CEO of Oracle, to uphold the integrity of artificial intelligence programs.
Company’s products and services:
- C3 AI Platform,
- C3 AI Applications,
- C3 Generative AI Product Suite,
- C3 AI Ex Machina.
Company revenues, based on core activities:
Company’s finances
The financial condition of the company is such that investing in it is strictly not advisable. However, we are analyzing a relatively young company here, only 14 years old. Furthermore, it only started its intensive operations in 2020 after raising funds for its development through an IPO.
The positive aspect is that the company has serious and seemingly long-term customers and generates consistently growing revenues. The average annual revenue growth over a 4-year period reaches as high as 30.64%. We see such large numbers because this is just the beginning of revenue growth, indicating the potential success of the business as it begins to expand.
The high Gross margin confirms the company’s claim that it is a market leader. That’s great for us, as we always seek market leaders for investment. In April 2023, at the end of the financial year, the Gross margin was 67.64%. However, this is where all of the company’s competitive advantage ends.
The Gross profit is completely insufficient to cover important expenses – both General and Commercial costs. These expenses, taken together, exceed the Gross profit by a factor of 2.61. This is a sign of a company on the brink of bankruptcy. However, let’s not rush with such an assessment.
The company has no financial debts, which is very good. Its operations are financed through the issuance of new shares. We highly appreciate the fact that the company does not need to pay additional interest and be beholden to credit institutions. On the contrary, the company has invested significantly in securities, and the proceeds from their sales also support its financial activities.
And another important factor is that the Bankruptcy risk indicator Z is 3.90. This means that the company is more than ‘safe’.
We do not yet forecast the indicators of future company earnings. However, we are monitoring how the company is managing to increase its revenue. We can already see that during the first financial quarter of this year, revenue increased by almost 11%. However, the cost of sales also increased significantly, and the quarterly losses decreased only slightly.
In other words, we are waiting for the moment when the GrossIncome will start covering the costs, and we are observing. And what’s interesting, the investment value is not the worst among the companies we analyzed and purchased. We are waiting for the indicator to improve:
C3 AI shares
C3 AI stocks are traded on the NYSE stock exchange. The ticker symbol is AI.
Certainly, the company does not pay dividends. We wouldn’t analyze this company if it paid dividends. Therefore, it does not have a Dividend Payment Policy. However, it does have a policy for Share Buybacks in the market. According to the latest report, the program has not been utilized yet.
Since reaching the peak during the IPO period, the stock price has already plummeted by -86.5%. And still (at the time of writing), we cannot determine whether the company’s shares are trading at a discount in the market or if it’s all over, the market has „thrown in the towel” on these shares.
The stock price standard deviation is as high as 570%. This is a highly risky stock and definitely not suitable for investment. The beta is even 2.43. It’s a good stock for traders.
Price chart
Conclusion
According to the dynamics of the stock price, it is evident that the Artificial Intelligence boom has considerably cooled off, and now a tremendous amount of work lies ahead. This poses a challenge for C3 AI company. They now need to prove that investments in the Artificial Intelligence industry are not only interesting but also profitable, and in the long run, they will bring substantial profits to the shareholders. We are eagerly waiting to see this and carefully observing. Active trading on these stocks is also an option.
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