What's Going On With C3.Ai Stock Today?

C3.Ai Inc AI shares are trading lower Tuesday. There are a number of things that could be driving the stock down, but it appears to be reacting negatively to a tweet from investment management firm Kerrisdale Capital. 

What Happened: Kerrisdale Capital said it sent a letter to the company's auditor documenting what it believes are "serious accounting issues."

"$AI’s fictional accounting has no place in the public markets," the investment management firm said via tweet.

The letter covers "conspicuous growth" and "highly concerning disclosures" related to Baker Hughes. Kerrisdale Capital also claims that C3.Ai is inflating gross profit margins and misclassifying revenue numbers.

What Else: As previously reported by Benzinga, C3.Ai appears to be overbought given its relative strength index (RSI) of 74.6. Stocks are usually considered overbought when RSI climbs above 70. C3.Ai shares were trading near 52-week highs in Tuesday's premarket session.

C3.Ai is also heavily shorted with 25.86% of the float currently sold short, per Benzinga Pro data.

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AI Price Action: C3.Ai has a 52-week high of $34.68 and a 52-week low of $10.16.

The stock was down 15.4% at $28.65 at time of publication, according to Benzinga Pro.

Photo: Gerd Altmann from Pixabay.