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Is C3.ai a buy now? Here’s What Earnings, AI Stock Chart Show| Investor’s Business Daily

C3.ai (AI) reported revenue of $66.4 million, which was down from $69.8 million a year ago but above the company’s expectation of $63 million-$65 million for the quarter. Shares were up 16% on the Friday open.


The company has deals with parent company Google Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), accent (ACN), Baker Hughes (BKR) and others.

The AI ​​stock had a loss per share of 6 cents, which was slightly better than the loss of 7 cents per share a year ago.

CEO Thomas Siebel stated that “overall business sentiment appears to be improving” compared to mid-2022 and he sees the company turn profitable in fiscal year 2024.

Generative AI stock disclosed $789.8 million in cash to guide it through “stock market turbulence” and help “invest in growth through AI innovation and enterprise sales expansion.”

On Monday, Facebook older Meta platforms (META) said it would install generative AI in its popular apps: Instagram, Facebook Messenger and WhatsApp.

AI has also expanded ties to Amazon.com’s Amazon Web Services for various industries, including local government offices. AI shares rose 4% on Tuesday following the news.

C3 AI applications, such as C3 AI Law Enforcement, can be offered through AWS services such as Amazon Comprehend. According to reports, the two companies also have an agreement that will allow C3.Ai to sell its applications along with AWS.

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According to Kimberly Honciano, Director of Technology Services for the San Mateo County Sheriff’s Office, the agreement “will not only eliminate data silos and improve business efficiency, but also unlock business analytics in a way that was not possible before.”

AI Stock’s Rise on ChatGPT’s Success

AI stocks skyrocketed in February.

Users successfully started using OpenAI’s artificial intelligence app, ChatGPT, to generate replies, texts, emails, and even books. AI stocks benefit from applications like ChatGPT.

While the AI ​​share has risen, it is well below its all-time high of 183.90, which it reached in December 2020, shortly after going public.

C3.ai offers enterprise AI, which includes applications for businesses, but not for consumers. But the company will benefit from consumer apps like ChatGPT because the code can be integrated into the C3.ai platform.

The ChatGPT app reached 100 million monthly active users in two months, beating popular apps like Tik-Tok and Instagram. OpenAI’s project with Microsoft (MSFT), ChatGPT uses natural language to help users write emails, develop code, and find answers to everyday questions.

C3.ai creates AI-enabled software applications that can be configured for different purposes. The software can make networks more reliable by detecting fraud, balancing inventory and demand, solving supply chain problems, increasing energy efficiency, helping to combat money laundering and customer interaction.

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C3.ai products are also valuable additions to business CRM systems where automation can reduce costs and errors.

IPO of AI stocks

AI shares popped up on the first day of public listing in December 2020, opening at 42 per share.

The stock rose from 11.19 at the end of 2022 to 30.92 earlier this month, up more than 150% in less than two months. It has a Composite Rating of 76, which falls below the desirable level of 90. The low 52 EPS Rating clearly weighs on the Composite Rating. However, the 96 Relative Strength Rating is self-explanatory and highlights outperformance when compared to other stocks in the IBD database.

The stock also has a “B” Accumulation/Distribution Rating, even though mutual funds only own 36% of the stock, according to IBD MarketSmith.

Investors looking for an entry will have to wait for a good foundation that can mount a sustained rally.

AI stock news

The general release of C3.ai’s Generative AI for Enterprise Search, part of the C3.ai Generative AI Product Suite, will be launched at the C3 Transform International User Group Conference on March 7. The product will leverage new AI tools and capabilities from leading platforms including OpenAI, Google and others. The new iteration can host ChatGPT and GPT-3.

Previously, the company was awarded a $90 million deal from the US Department of Health and Human Services for data collection, analytics and predictive AI tools.

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The generative artificial intelligence feature of C3.ai products holds promise for governments and enterprises seeking to build accurate solutions to complex problems at a lower cost.

But that promise requires a lot of upfront spending. At the same time, the size of the AI ​​market is gigantic and growing. The value of the global artificial intelligence market is expected to reach $387.45 billion by 2022 and reach $1.39 trillion by 2029 – a huge opportunity.

AI stocks have risen with a growing interest in generative artificial intelligence. The inventory is one to watch as more companies outsource their automation needs for complex processes.

According to the CAN SLIM investment strategy, stocks with strong records of sales and earnings growth that offer clear buy points from bases are good choices. Clearly, AI stocks still have some work to do before offering a solid entry.

To find the best stocks, go to IBD Stock Lists And IBD data tables.

Please follow VRamakrishnan on Twitter for more AI stock news.

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