C3.ai Inc (NYSE:AI) shares are trading flat Thursday morning as investors digest a mixed but promising second-quarter earnings report released late Wednesday. Here’s what investors need to know.
- AI is demonstrating bullish strength. Review the technical setup here.
What To Know: The company reported a quarterly loss of 25 cents per share, narrower than the 33-cent loss anticipated by Wall Street. Revenue also topped estimates, coming in at $75.15 million against a forecast of $74.86 million, with subscription revenue accounting for 93% of the total.
However, the financial beat took a backseat to the narrative of stabilization under new leadership. CEO Stephen Ehikian candidly addressed the company's recent “unacceptable” execution, attributing previous missed targets to a disruptive sales reorganization and the health crisis of former CEO Thomas Siebel, who suffered significant vision impairment from an autoimmune disease.
Ehikian emphasized that while a “turnaround plan” is underway, the demand environment for enterprise AI remains strong. “There’s work to be done,” Ehikian stated, noting that the company is now refocused on consistent execution.
Looking ahead, C3.ai issued third-quarter revenue guidance between $72 million and $80 million, against the analyst consensus of $75.63 million.
Benzinga Edge Rankings: Benzinga Edge rankings further reflect the stock’s complex technical profile, assigning a Growth score of 22.49 and a Momentum score of 5.80, while flagging negative Price Trends across short, medium, and long-term horizons.
AI Price Action: C3.ai shares were flat at $15.01 at the time of publication on Thursday, according to Benzinga Pro data.
Currently, C3.ai is trading approximately 7.3% below its 50-day moving average and 26.4% below its 200-day moving average. This positioning suggests that the stock is experiencing a bearish trend in the longer term, as it remains significantly below both key moving averages, indicating potential resistance levels ahead.
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How To Buy AI Stock
By now you're likely curious about how to participate in the market for C3.ai – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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