What's Going On With C3.ai Stock Wednesday?

C3.Ai Inc AI shares are seeing increased attention Wednesday ahead of earnings after the close. Here’s what you need to know before the report.

What To Know: C3.ai is due to report fiscal first-quarter financial results after the bell. The enterprise AI company is expected to report a loss of 13 cents per share on quarterly revenue of $86.942 million, according to estimates from Benzinga Pro.

C3.ai has exceeded analyst estimates on the top and bottom lines in 11 of the last 13 quarters, per Benzinga Pro data.

Last quarter, the company reported its fifth consecutive quarter of accelerating revenue growth, turning in revenue of $86.6 million versus estimates of $84.395 million, up 20% year-over-year. C3.ai also reported a loss of 11 cents per share, beating analyst estimates for a loss of 30 cents per share.

“Demand for Enterprise AI is intensifying, and our first to market advantage in Enterprise AI positions us well to capitalize on it,” C3.ai chairman and CEO Thomas Siebel said at the time.

C3.ai guided for continued acceleration of revenue growth to 23% in fiscal year 2025. Siebel also noted last quarter that the interest the company was seeing for its generative AI applications was “staggering.”

Multiple analysts adjusted price targets on the stock, ranging from $23 to $40, following the company’s fourth-quarter results. There have not been any analyst updates released in the weeks leading up to earnings.

Piper Sandler analyst Arvind Ramnani said last quarter that he wanted to see some of the robust interest in the company’s AI solutions translate to higher levels of growth. DA Davidson analyst Gil Luria also cautioned that gross margins could face pressure moving forward as the company ramps AI pilots.

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Investors and analysts appear to be focused on top-line growth, margins and the company’s pipeline of potential deals when C3.ai reports after the bell. It’s worth noting that C3.ai shares have significantly underperformed other AI-linked stocks since the start of the year.

C3.ai stock was trending on Reddit’s r/WallStreetBets on Wednesday as traders gear up for earnings. The retail crowd appears to be highlighting high short interest in the name. 25.73% of C3.ai’s float is currently sold short, per data from Benzinga Pro.

AI Price Action: C3.ai shares are down about 17% year-to-date heading into the print. The stock is volatile Wednesday. It was up approximately 1.7% in early trading before pulling back and turning negative. C3.ai shares were down 0.13% at $23.42 at the time of publication Wednesday, according to Benzinga Pro.

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