C3.ai Intrinsic Stock Value – 2023: Is C3.ai’s AI Hype a Smart Investment, or Has it Added Unnecessary Risk to Future Returns?
March 20, 2023
Trending News ☀️
The recent success of C3.ai ($NYSE:AI) has been remarkable; its stock has nearly doubled in the year up to 2023 and the AI hype surrounding it has been palpable. But potential investors should be aware that C3.ai is still undergoing changes and developments in its AI capabilities and applications. As such, there is a potential risk that the AI hype may create unrealistic expectations and lead to future returns that fail to live up to the hype. Investors should also take into account C3.ai’s own risks, such as its reliance on third-party services and products, which can create delays and increase costs. Furthermore, C3.ai’s relatively small size means that it is more vulnerable to economic and technological changes.
All of these factors could weigh heavily on C3.ai’s future returns if they are not managed properly. In conclusion, while C3.ai has seen tremendous growth in the past year, investors should weigh the potential risks associated with investing in C3.ai before committing to any positions. While the AI hype surrounding C3.ai may be impressive, it may also pose unnecessary risk to future returns if not managed properly.
Stock Price
News coverage on C3.AI‘s artificial intelligence (AI) hype has been largely positive so far, with many investors seeing it as a smart investment that could bring in high future returns. However, on Wednesday the C3.AI stock opened at $20.6 and closed at $20.8, slightly down 1.2% from its previous closing price of $21.1. Investors are now asking, with the stock’s recent drop, is investing in C3.AI still a wise choice for 2023 and beyond? Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for C3.ai. More…
| Total Revenues | Net Income | Net Margin |
| 266.7 | -262.3 | -98.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for C3.ai. More…
| Operations | Investing | Financing |
| -155.91 | 278.06 | -15.97 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for C3.ai. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.1k | 147.84 | 8.46 |
Key Ratios Snapshot
Some of the financial key ratios for C3.ai are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 40.3% | – | -102.6% |
| FCF Margin | ROE | ROA |
| -81.8% | -18.0% | -15.6% |
Analysis – C3.ai Intrinsic Stock Value
We at GoodWhale have conducted extensive analysis of C3.AI and its wellbeing. Our proprietary Valuation Line has led us to the conclusion that C3.AI’s fair share price is around $46.0. Currently, the stock is being traded at $20.8, resulting in a 54.8% discount from its true value. This is why we believe that the purchase of C3.AI shares right now may be a great opportunity for investors! More…
Peers
The company was founded in 2009 by Tom Siebel, a veteran of the software industry. C3.ai‘s primary competitors are Microsoft Corp, Salesforce Inc, and Palantir Technologies Inc.
– Microsoft Corp ($NASDAQ:MSFT)
Microsoft Corporation is an American multinational technology company with a market cap of $1.73 trillion as of 2022. It specializes in developing and manufacturing consumer electronics, computer software, and personal computers. The company’s Return on Equity (ROE) is 31.9%. Microsoft has been one of the world’s largest companies by market cap since the early 1990s.
– Salesforce Inc ($NYSE:CRM)
Salesforce is a cloud-based customer relationship management platform. The company’s market cap is $162.59 billion as of 2022, and its return on equity is 0.08%. Salesforce was founded in 1999 and is headquartered in San Francisco, California. The company provides customer relationship management (CRM) software to businesses of all sizes.
– Palantir Technologies Inc ($NYSE:PLTR)
Palantir Technologies Inc is a data mining and analytics company that provides software to help organizations make better decisions. The company has a market cap of 18.14B as of 2022 and a return on equity of -13.19%. Palantir’s software is used by a variety of organizations, including the US government, law enforcement, and private companies. The company has come under scrutiny for its role in helping the US government track and target terrorists.
Summary
C3.AI is a leading artificial intelligence (AI) company that has been generating a lot of hype recently in the investment world. While the company’s technology is highly promising, investors must consider the potential risks involved before committing to an investment. Analyzing the technology, its expected returns, and the potential risks associated with investing in AI can help investors make an informed decision.
However, some analysts caution that AI investments can be risky, due to their relative newness and lack of understanding of potential outcomes. Investors should consider whether the potential returns outweigh the potential risks when making their decision to invest in C3.AI.
