- C3.ai (NYSE:AI) shares fell in pre-market trading following a short-sell call by Spruce Point Capital.
- The report entitled "Real Intelligence: Sell C3.ai" outlines why the short-selling firm believes shares face "up to 40% to 50% downside risk" to $12.85-$15.40 per share.
- The firm sees risk from concentration as Baker Hughes Co (NASDAQ:BKR) is C3.ai's largest customer and accounts for over 30% of sales.
- Spruce Point also stated that it has found "a pattern of exaggeration and irreconcilable statements" from C3.ai regarding its "customers, technology development cost, total addressable market size, the pace of market growth, market share, alliances, and sales cycle to close deals."
- Spruce Point also contends that investor expectations for revenues at C3.ai are "too high given significant salesforce turnover" and a recent restructuring.
- C3 AI is an Enterprise AI application software company. C3 AI delivers a family of fully integrated products, including the C3 AI Suite, an end-to-end platform for developing, deploying, and operating enterprise AI applications and C3 AI Applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally.
- Price Action: AI shares traded lower by 3.58% at $24.79 on the last check Wednesday.
