What's Going On With C3.Ai Stock Friday

C3.Ai, Inc AI stock dropped after Deutsche Bank reiterated a Sell rating after its investor meeting. The Bank said the AI winner could be in trouble after its latest investor day.

DA Davidson analyst Gil Luria reiterated a Neutral rating on C3.Ai, Inc with a price target of $30.00.

The analyst attended C3.ai's Investor Day virtually, focusing on the company's new Generative AI product and technological differentiation. Luria returned with some incremental data points and found the product deep dive helpful. 

He still views tailwinds from Generative AI appropriately reflected in the stock.

The event's highlight was the presentation on C3.ai's ability to deliver a differentiated enterprise search product through a combination of a retrieval model and LLMs to provide deterministic responses without hallucination or leakage of proprietary information. 

C3.ai emphasized the quick deployment and rapid time to value that its Generative AI solutions provide customers by enabling non-technical users to utilize C3.ai applications and increase consumption overall, given the improved application interface.

The upcoming July release will likely introduce three new fine-tuned LLMs specialized in Q&A, summarization, and comparison tasks. The platform will also feature generative data visualization capabilities, where users can provide a dataset and automatically generate relevant charts. Importantly, self-service deployment will likely become available in October. 

In future releases, C3.ai plans to introduce a fine-tuned LLM for the C3 Type system and three industry-specific fine-tuned LLMs focused on defense, banking, and consumer packaged goods/retail sectors. 

C3.ai continues to invest in R&D, expanding its workforce in Guadalajara to support these developments while maintaining its goal of achieving Non-GAAP Operating and FCF profitability in the fourth quarter of FY24.

C3.ai detailed recent successes in its growing partnerships, with over 60% of the pipeline now co-developed with partners.

Price Action: AI shares traded lower by 10.60% at $33.47 on the last check Friday.