C3.ai (AI) CEO Tom Siebel sees AI applications hitting $600 billion as everyone will eventually use enterprise AI. AI stock gapped up on strong earnings earlier this month and is pulling back this week. The general release of its generative AI product suite is on deck.
For the quarter ended January, AI stock reported sales of $66.4 million, down 4% from the $69.8 million posted a year ago but above the company’s guidance of $ 63 million-$65 million for the quarter.
Shares jumped 16% at the open Friday and finished that session roaring 33% higher in the heaviest turnover in three weeks.
The company has deals with Google parent Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), Accenture (ACN), Baker Hughes (BKR) and others.
AI Stock Earnings: Still In The Red
AI also posted a net loss per share of 6 cents, which was slightly better than the 7 cents per share loss a year ago.
CEO Thomas Siebel stated that “overall business sentiment appears to be improving” compared with mid-2022 and he sees the company becoming profitable in fiscal 2024.
The generative AI stock disclosed $789.8 million in cash to take it through “equity market turbulence” and help it “invest in growth through enterprise AI innovation and sales expansion.”
On Monday, Facebook parent Meta Platforms (META) said that it would install generative AI in its popular apps: Instagram, Facebook Messenger and WhatsApp.
AI has also expanded ties with Amazon.com’s Amazon Web Services for several industries, including local government offices. AI stock was up 4% Tuesday after 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 allowing C3.Ai to co-sell its applications with AWS.
According to Kimberly Honciano, Director of Technology Services of the San Mateo County Sheriff’s Office, the agreement “will not only eliminate data silos and improve case efficiency, but also unlock enterprise analytics in a way that wasn’t possible before.”
AI Stock’s Surge On ChatGPT Success
AI stock initially skyrocketed in February.
Users successfully started using OpenAI’s artificial intelligence app, ChatGPT, to generate answers, texts, emails and even books. AI stock stands to benefit from applications like ChatGPT.
Although AI stock has risen, it still trades more than 85% below an all-time high of 183.90, which it reached in December 2020, shortly after its IPO.
C3.ai provides enterprise AI, which comprise applications for businesses but not consumers. But the company stands to 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 helps users write emails, develop codes and finds answers for daily questions.
C3.ai makes AI-enabled software applications that can be configured for different purposes. The software can make networks more reliable, detecting fraud, balancing inventory and demand, solving supply chain issues, increasing energy efficiency, helping with anti-money laundering and customer interfacing.
C3.ai products are also valuable adds to enterprise CRM systems where automation can reduce cost and errors.
AI Stock IPO
AI stock popped 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, surging over 150% in less than two months. The Composite Rating of 79 is rising, yet still falls below the desirable level of 90. The low 52 EPS Rating clearly weighs on the Composite Rating. However, the 96 Relative Strength Rating speaks for itself, highlighting outperformance compared with other stocks in the IBD database.
The stock also boasts a “B” Accumulation/Distribution Rating, even though mutual funds own only 36% of shares, according to IBD MarketSmith.
Investors looking for an entry should wait for a proper base that can set up a sustained rally.
AI Stock News
C3.ai’s Generative AI for Enterprise Search general release, a part of the C3.ai Generative AI Product Suite, is launching at the C3 Transform international users’ group conference on Tuesday. The product will draw on new AI tools and capabilities from leading platforms, including OpenAI, Google and others. The new iteration will be able to host ChatGPT and GPT-3.
Earlier, the company got a $90 million deal from the U.S. Department of Health and Human Services for data collection, analysis and predictive AI tools.
The generative artificial intelligence feature of C3.ai products holds promise for governments and enterprises that are trying to build accurate solutions for complex problems at lower costs.
But that promise calls for a lot of upfront spending. At the same time, the AI market size is gigantic and growing. The value of the global artificial intelligence market is expected to hit $387.45 billion in 2022 and surge to $1.39 trillion by 2029, according to Fortune Business Insights — a huge opportunity.
AI stock has rallied with growing interest in generative artificial intelligence. The stock 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 sound picks. Clearly, AI stock has some work to do before it offers a solid entry.
To find the best stocks check out IBD Stock Lists and IBD Data Tables.
Please follow VRamakrishnan on Twitter for more news on AI stock.
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