Should You Buy AI Stock Now? C3.ai’s Earnings And Charts Provide Insights

AI enthusiasts have creatively employed the ChatGPT app for generating various types of content, like texts, math answers, and even books. Thanks to this growing popularity of AI use, C3.ai (AI) experienced a surge in value earlier this month. However, its current price is still far below its December 2020 peak of 183.90.

C3.ai specializes in providing enterprise-level AI applications, catering exclusively to businesses. Nevertheless, the company could profit from consumer-oriented solutions like ChatGPT. This is because ChatGPT’s programming can seamlessly integrate with the C3.ai platform.

Sales Growth is Evident in AI stock

C3.ai produces adaptable AI-powered software applications designed for various use cases. Their software can enhance network dependability, identify fraudulent activities, optimize inventory and demand, and address supply chain challenges. It can also boost energy efficiency, improve customer engagement, and aid with anti-money laundering. Additionally, C3.ai products are valuable additions to enterprise CRM systems where automation can lower expenses and minimize mistakes.

The company has achieved a respectable record of sales growth, with a 7% increase equivalent to $62.4 million in the third quarter. However, despite this progress, the company lost 11% per share.

Frankly, newer companies undergoing initial public offerings entail higher risk, unlike their more established counterparts with established sales track records. Hence, while AI stock has experienced a notable eight quarters of sales growth since going public, it remains riskier.

Trend and Technical Analysis

In December 2020, AI stock debuted on the public market at an opening price of $42 per share, resulting in a sharp spike. The stock surged over 150% in less than two months, from 11.19 in Q4 2022 to 30.92 earlier this month. Although the stock’s Composite Rating of 78 falls marginally below the coveted 80 mark, its 96 Relative Strength Rating speaks for itself. This means a superior performance compared to other stocks in the IBD database. However, the low 54 EPS Rating negatively impacts the Composite Rating.

Fundamentals

At the upcoming C3 Transform international users’ group conference on March 7, C3.ai will launch its Generative AI for Enterprise Search, a component of the C3.ai Generative AI Product Suite. The new version leverages advanced AI tools and features from top platforms like Google and OpenAI and can support GPT-3 and ChatGPT.

Meanwhile, the global AI market is expanding tremendously and is expected to surge to $1.39 trillion by 2029, presenting a significant opportunity for growth.

Featured image from Nasdaq.com