U.S. stock indexes were set to open lower on Wednesday as a deal to raise the nation's debt ceiling headed for a pivotal vote by lawmakers, while another round of earnings highlighted the pinch of higher prices being felt by corporate America.
The NASDAQ 100 Pre-Market Indicator is down -68.1 to 14,286.89. The total Pre-Market volume is currently 24,495,982 shares traded.The following are the most active stocks for the pre-market session: C3.ai, Inc. (AI) is -2.45 at $41.50, with 3,351,147 shares traded., following a
Below is Validea's guru fundamental report for NVIDIA CORPORATION (NVDA). Of the 22 guru strategies we follow, NVDA rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and c
Wall Street has delivered a muted performance in May while debt-deal was on. The S&P 500 (up 0.9%), the Dow Jones (down 2.9%), the Nasdaq (up 6.1%) and the Russell 2000 (up 0.2%) have swung in the range of negative 2.9% to up
On May 30, Nvidia NVDA surged about 3% to join the elite club of Wall Street — the one trillion market cap holders — for a brief period on AI euphoria. At close, the chip giant’s market cap was $991.997 billion. Notably, Nvidia’s
U.S. stock index futures dipped on Wednesday as a deal to raise the nation's debt ceiling headed in for a pivotal vote by lawmakers, while another round of earnings highlighted the pinch of higher prices being felt by corporate America.
Even after Nvidia Corp's blistering rally in recent days, the chip developer's valuation has actually fallen, at least by one measure widely used by analysts and investors.
How does Nvidia's (NASDAQ: NVDA) valuation compare to the other companies in the trillion-dollar club? Check out the short video to learn more, consider subscribing, and click the special offer link below.
Making its debut on 12/13/2016, smart beta exchange traded fund Nuveen ESG Large-Cap Growth ETF (NULG) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
Specialized cloud computing provider CoreWeave has raised $200 million in funding from its existing investor Magnetar Capital, highlighting investor interest in backing infrastructure powering the generative AI boom.
U.S. stock index futures dipped on Wednesday as a deal to raise the nation's debt ceiling headed in for a pivotal vote by lawmakers, while shares of Hewlett Packard Enterprise slipped after it missed quarterly revenue targets.
Nvidia (NASDAQ: NVDA) just provided a financial guidance update for the ages. Propelled by surging demand for the hardware required to support generative artificial intelligence (AI) systems like ChatGPT, Nvidia's data center sales are booming.
Both Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) have seen fantastic stock gains this year, with their share prices climbing 166.5% and 96%, respectively. But while Nvidia now trades at all-time highs, AMD stock remains down about 21.5% from its peak and has ye
So far, 2023 has been a remarkable year for U.S. equities markets, with the S&P 500 index staging a 10% rally, defying recession fears. However, behind this seemingly positive performance lies a concerning trend. A select group of technology giants, commonly referred to
Nvidia (NASDAQ: NVDA) stock surged by 24% in Thursday’s trading after the company posted a better-than-expected set of Q1 FY’24 results and provided Q2 revenue guidance that was well ahead of Street estimates. With the surge, Nvidia’s market cap is approac
Parabolic price moves are awe-inspiring, and it's tempting to jump on the bandwagon, but beware, as C3.ai (
NYSE:AI
) stock may have gotten ahead of itself. C3.ai is a promising business in the
artificial intelligence (AI) space, but I am neutral on AI stock because its steep trajectory seems to indicate sky-high market expectations, which no company should ever have to fulfill.
C3.ai is, as the company's name suggests, a provider of AI-empowered software products. Now, I'm certainly not denying that machine learning will be relevant throughout the 2020s. Economists with Goldman Sachs (
NYSE:GS
) estimate that, over the next decade, AI will increase productivity in the U.S. by around 1.5% per year. Besides, the popularity of OpenAI's ChatGPT chatbot shows how pervasive generative AI has become.
Just remember, though, that the financial markets are highly efficient, especially since everyone has immediate access to the relevant data nowadays. Thus, if people already understand the growth runway for machine learning in general -- and if they're prematurely pricing in terrific results for C3.ai in particular -- this sounds like a recipe for disappointment ahead.
C3.ai Stock Goes to the Moon, but Not Necessarily Because of C3.ai
First and foremost, please take a look at the
price chart of AI stock. It rose 33.42% on Tuesday, May 30, and that's just one trading session. The company didn't even release its fourth-quarter Fiscal-Year 2023
earnings results yet; that event is scheduled to take place after the market closes on
Wednesday, May 31. So, why on earth would C3.ai stock skyrocket
before the company's earnings release?
Surely, a major factor is what we might call "
AI fever." Practically every mega-cap technology company's first-quarter 2023 conference call mentioned AI multiple times. Investors have been eager to buy anything and everything with a connection to AI lately, especially if it involves generative AI. It's starting to remind me of initial coin offerings (ICOs) in 2018 and
non-fungible tokens (NFTs) in 2021 (though I'll admit that AI will likely have more real-world utility and enduring value than most
cryptocurrencies and NFTs).
What really pushed C3.ai stock so high, though, is the recent enthusiasm surrounding Nvidia (
NASDAQ:NVDA
). Since NVDA stock zoomed higher after Nvidia released
forecast-beating quarterly earnings results, I suspect that financial traders want to front-run each other and buy AI stock in anticipation of a similar earnings blowout.
C3.ai Already Released Its Quarterly Results (Sort Of)
Speaking of front-running, let's not ignore the fact that C3.ai already released its preliminary earnings results for Q4 FY2023. Hence, not only did AI stock traders already price in an outstanding set of quarterly results, but C3.ai eliminated much of the earnings-event uncertainty by releasing the company's estimated ranges for its revenue, income (or lack thereof), and more.
Just to sum it up for your convenience, C3.ai expects to report quarterly
revenue of $72.1 million to $72.4 million, a non-GAAP loss from operations totaling $23.7 million to $23.9 million, and
free cash flow in the range of $18.0 million to $19.4 million. So, the company admits that it's unprofitable. I'm not saying C3.ai is a zombie company or anything like that, but only that the general optimism surrounding C3.ai is somewhat overstated.
Furthermore, while C3.ai's C3 Generative AI product is now widely available, the company still doesn't have the most popular generative AI product; that title undoubtedly belongs to OpenAI's
ChatGPT. That's a problem because some stockholders probably think that C3.ai is the leader of the generative AI market simply because "AI" is in the company's name and stock ticker symbol.
Is AI Stock a Buy, According to Analysts?
Turning to Wall Street, AI stock comes in as a Hold based on three Buys, three Holds, and four Sell ratings. The average
C3.ai stock price target is $20.50, implying over 53% downside potential.
If you’re wondering which analyst you should follow if you want to buy and sell AI stock, the most accurate analyst covering the stock (on a one-year timeframe) is
Patrick Walravens of JMP Securities, with an average return of 17.32% per rating and a 60% success rate. Click on the image below to learn more.
Conclusion: Should You Consider C3.ai Stock?
As long as machine learning is top-of-mind on Wall Street, C3.ai will remain the focus of attention among short-term stock traders. Don't expect this phase of the hype cycle to last forever, though.
I like C3.ai as a company, but not as much as AI's stock chart would suggest. The best strategy, in my opinion, would likely be to wait for a pullback in the C3.ai share price before considering buying. If the upcoming quarterly earnings event makes me look foolish, and C3.ai stock keeps on rocketing higher, I don't mind at all. That's because sometimes, vertical price moves can persist for a surprisingly long time before gravity finally sets in.
Disclosure
What happened
Shares of Palantir Technologies (NYSE: PLTR) charged sharply higher Tuesday, joining the general enthusiasm for anything related to artificial intelligence (AI). The stock jumped as much as 10% but was up 7.8% when the market closed.
On Monday, news broke that seven ETFs offering leveraged or inverse exposure to individual stocks would close in June. They will be the first single-stock ETFs to close. With the exception of a few products, single-stock ETFs have struggled to meet the high expectations set when the first ones launched in July 2022. As ETFs [...]
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A look at the day ahead in Asian markets from Jamie McGeever. Asian market focus on Wednesday turns to Chinese purchasing
managers index figures, which will give the first insight into factory and service sector activity in the world's second largest economy in May.