C3 Ai Short Position
C3.ai, a leading artificial intelligence (AI) company, saw its shares fall by 15% on Wednesday after short seller Kerrisdale Capital alleged accounting issues. This also impacted other AI-related companies, with security firm Guardforce AI dropping more than 18%, data analytics firm BigBear.ai losing 16%, and conversation intelligence company SoundHound AI declining 9%. Kerrisdale had disclosed its short position in C3.ai last month, accusing the company of “poor customer traction, failing sales partnerships, and financial pressures.” The company has up tot this point denied the allegations.
Canaccord Genuity(Rank#20) analyst Kingsley Crane stated that “there is no evidence of any real wrongdoing or fraud in the short-seller report, but it raises some concerns and investors could benefit from more clarity.” Crane also added that this issue should not affect other AI stocks in the near term as they are traded on excitement, not as a systemic risk.
C3.ai’s stock has more than doubled in value this year thanks to a surge of investor interest in AI-related companies after the viral success of OpenAI’s ChatGPT. The rally has been halted in recent days due to growing concerns over the use of AI and countries moving to regulate its applications. On Tuesday, US President Joe Biden said it remained to be seen whether AI is dangerous, but underscored that technology companies had a responsibility to ensure their products were safe before making them public.
This incident has highlighted the risks of investing in high-growth companies, particularly those in the tech sector. While AI has the potential to revolutionize many industries, including finance, healthcare, and transportation, it is still a nascent field with many unknowns. Investors should exercise caution and perform due diligence when investing in such companies, particularly those with high valuations and little operating history.
AI Stock Forecast & Analysis
C3.ai Inc, a software company that specializes in developing and providing AI-based software solutions, has been rated as a “Buy” by the 10 analysts who cover the stock. The average analyst target price for C3.ai Inc is USD 18.36 over the next 12 months. This suggests a potential downside of 26.45% from the last closing price of USD 24.95.
According to Stock Target Advisor, their stock analysis of C3 Ai Inc is Slightly Bullish, which is based on 6 positive signals and 3 negative signals. This indicates that there is still optimism surrounding the company despite recent setbacks.
The company’s stock price has been on a downward trend over the past month, losing 12.39% of its value.
Despite the recent decline, C3.ai’s stock price has increased by 2.93% over the last year, indicating that the company has performed well in the long term. The company’s stock price has also changed by 2.30% over the past week, suggesting that investors are starting to regain confidence in the company.