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

C3.ai (AI) is due to report on March 2nd, but its outlook and hints at the March 7th release of its latest product will be crucial.

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

X

AI stock is down over 8% on Wednesday ahead of gains, despite climbing over 1.5% in strong volume on Tuesday. The mixed performance over the past six sessions has an interesting point: there was less volume on down days than on days when the stock was up.

Earlier this week, AI stock expanded on ties to Amazon.com‘S (AMZN) Amazon Web Services for various industries, including local government agencies. AI stock rose 4% Tuesday after the news.

C3 AI applications such as C3 AI Law Enforcement can be offered through AWS services such as Amazon Comprehend. The two companies also reportedly have an agreement that allows C3.Ai to co-sell its applications with AWS.

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 case efficiency, but also enable enterprise analytics in ways not previously possible.”

Increase in ChatGPT Success by AI Stock

AI stock skyrocketed earlier this month.

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

Although AI stock is up, it is well below its all-time high of 183.90, set in December 2020.

C3.ai provides enterprise AI that includes applications for businesses but not for consumers. But the company can 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, surpassing popular apps like Tik-Tok and Instagram. OpenAI’ 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 various purposes. The software can make networks more reliable, detect fraud, balance inventory and demand, solve supply chain problems, increase energy efficiency, help with anti-money laundering and customer interface.

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

AI stock shows revenue growth

The company has a decent record of revenue growth.

In the third quarter, revenue rose 7% to $62.4 million, but the company still lost 11 cents a share. Recent IPOs carry greater risk because, unlike older companies, they have not had any sales success. Although AI stock has posted good sales growth for eight quarters since its IPO, holding this stock is riskier.

AI stock surfaced 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 in the thi

s month and increased by over 150% in less than two months. It has a composite rating of 76, which is below the desirable level of 90. The low EPS rating of 52 weighs heavily on the composite rating. However, the Relative Strength Rating of 96 speaks for itself and underscores the outperformance relative to other stocks in the IBD database.

The stock also has a best-in-class accumulation/distribution rating of “B+,” although mutual funds are reported to own just 36% of the shares IBD MarketSmith.

Investors looking for entry should wait for a suitable base that can trigger a sustained rally.

AI Stock News

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

The company previously received a $90 million deal from the US Department of Health and Human Services for data collection, analysis and predictive AI tools.

The generative artificial intelligence function of C3.ai products holds great promise for governments and corporations trying to develop accurate solutions to complex problems at lower costs.

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

AI stock has rallied as interest in generative artificial intelligence grows. The stock should be watched as more companies outsource their automation needs for complex processes.

According to CAN SLIM’s investment strategy, stocks with strong sales and earnings growth records that offer clear buying points from the bottom up are good choices. Clearly, AI stock still has work to do before it offers a solid entry point.

To find the best stocks, stop by IBD inventory lists And IBD data tables.

Please follow VRamakrishnan on Twitter for more AI stock news.

You may also like

The Best AI Stocks to Buy & Watch Right Now

View breakout stocks and technical analysis

Get FREE IBD Newsletters: Market Preparation | Technical Report | How to invest

View daily market updates on IBD Live