Why C3.AI Stock Collapsed This Week

Motley Fool2023-04-08

What happenedShares of C3.AI crashed as much as 32% this week. The enterprise artificial intelligence (AI) software provider was presented with a short report from Kerrisdale Capital asking its ...

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Comments

HLPA
2023-04-09
HLPA
C3.ai has been a scam all along. I was burnt buying the stock at near $80 some time back only to see the stock drop to a single digit before the AI hooha started.
- JDhope89:
  👌
- HLPA:
  [Like]
- icycrystal:
  trade with caution
- AdyHi:
  👍🏼
- Nongren:
  a
xiaobaii
2023-04-08
xiaobaii
like & comment please
Grumpy Cat
2023-04-08
Grumpy Cat
I often wonder that if the stock market is so fragile that when one person says something to cause a company to collapse if it's really worth while investing in the first place.
- xiaobaii:
  like & comment please

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The enterprise artificial intelligence (AI) software provider was presented with a short report from Kerrisdale Capital asking its ...</p>\n\n<a href=\"https://www.fool.com/investing/2023/04/07/why-c3ai-stock-collapsed-this-week/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AI","symbol_name":"C3.ai, Inc.","start_time":0,"source_url":"https://www.fool.com/investing/2023/04/07/why-c3ai-stock-collapsed-this-week/","article_id":"2325592033","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2325592033","pubTimestamp":1680933567,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"A prominent short-seller believes the company is misleading investors with its financial statements.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"AI":"C3.ai, Inc."},"translate_title":"为什么C3.AI股票本周暴跌","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AI":1},"content_text":"What happenedShares of C3.AI  crashed as much as 32% this week. The enterprise artificial intelligence (AI) software provider was presented with a short report from Kerrisdale Capital asking its auditor to investigate major accounting irregularities with the publicly traded company. The short-seller believes C3.AI is masking a declining business by faking revenue from large shareholder and customer Baker Hughes.The stock is still up over 100% year to date as its ticker, AI, has encapsulated the current AI bonanza in public markets. But don't think this means you should mount up and buy the dip on one of the market's favorite AI stocks of 2023.So whatThe Kerrisdale report presents a pretty damning case with C3.AI's financial statements. Without getting too bogged down in the details, the company alleges C3.AI is likely committing fraud for a few reasons:Its accounts receivable line item from related party Baker Hughes has ballooned over the past year, which is atypical for a software provider and indicates it is faking revenue to please Wall Street.Management is inflating the company's gross margins by putting expenses that should go into \"cost of revenue\" into the operating expense line item.The company has cycled through four chief financial officers (CFOs) in four years and now has a 39-year-old CFO with no CFO experience.So even though C3.AI is reporting \"revenue\" and high gross margins, its free-cash-flow chart looks incredibly ugly:AI Free Cash Flow data by YCharts.Good software companies turn earnings into cash flow. This is not happening at C3.AI. Kerrisdale believes C3.AI's auditors need to investigate these confusing accounting choices and potentially book the company for securities fraud. 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So even if you believed the AI story management was feeding you, it is probably best to sell your shares of this enterprise AI upstart that is up over 100% so far this year.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9946578299,"gmtCreate":1681008386912,"gmtModify":1681008390115,"author":{"id":"3569274903458035","authorId":"3569274903458035","name":"HLPA","avatar":"https://static.tigerbbs.com/07e7b987a9127c5a47dbc3ae02db548b","vip":1,"hat":"https://static.tigerbbs.com/646756f1284a5a6480ed02cc4fa7d1d2","crmLevel":8,"crmLevelSwitch":1,"authorIdStr":"3569274903458035","idStr":"3569274903458035"},"htmlText":"C3.ai has been a scam all along. I was burnt buying the stock at near $80 some time back only to see the stock drop to a single digit before the AI hooha started.","listText":"C3.ai has been a scam all along. I was burnt buying the stock at near $80 some time back only to see the stock drop to a single digit before the AI hooha started.","text":"C3.ai has been a scam all along. I was burnt buying the stock at near $80 some time back only to see the stock drop to a single digit before the AI hooha started.","images":[],"top":1,"highlighted":2,"essential":1,"paper":1,"likeSize":25,"commentSize":18,"repostSize":1,"link":"https://ttm.financial/post/9946578299","repostId":2325592033,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":106264461,"gmtCreate":1681098874815,"gmtModify":1681098878106,"authorId":3546938459174579,"author":{"id":3546938459174579,"idStr":"3546938459174579","authorId":3546938459174579,"name":"JDhope89","avatar":"https://community-static.tradeup.com/news/fa4bfa0d95b3f4b709a4c9b2fcfdd304","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9946578299,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">👌</span>","text":"<span class=\"s1\">👌</span>","html":"<span class=\"s1\">👌</span>"},{"id":106262479,"gmtCreate":1681090916880,"gmtModify":1681090923414,"authorId":3569274903458035,"author":{"id":3569274903458035,"idStr":"3569274903458035","authorId":3569274903458035,"name":"HLPA","avatar":"https://static.tigerbbs.com/07e7b987a9127c5a47dbc3ae02db548b","vip":1,"currentWearingBadge":{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Have published 3 or more picked posts, and have published at least one picked post and participated in comments within 30 days","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.12.02","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2007},"crmLevel":8,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9946578299,"type":1,"supId":106259864,"prevId":0,"content":"[Like]","text":"[Like]","html":"[Like]"},{"id":106259864,"gmtCreate":1681060406884,"gmtModify":1681060413594,"authorId":4132300740238052,"author":{"id":4132300740238052,"idStr":"4132300740238052","authorId":4132300740238052,"name":"icycrystal","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9946578299,"type":1,"supId":0,"prevId":0,"content":"trade with caution","text":"trade with caution","html":"trade with caution"},{"id":106259107,"gmtCreate":1681054580445,"gmtModify":1681054586772,"authorId":3581761764491921,"author":{"id":3581761764491921,"idStr":"3581761764491921","authorId":3581761764491921,"name":"AdyHi","avatar":"https://static.tigerbbs.com/53dd7181e0894fbd82ccc3cb9e61d7f7","vip":1,"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9946578299,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">👍🏼</span>","text":"<span class=\"s1\">👍🏼</span>","html":"<span class=\"s1\">👍🏼</span>"},{"id":106258551,"gmtCreate":1681049908914,"gmtModify":1681049912526,"authorId":3582433174006298,"author":{"id":3582433174006298,"idStr":"3582433174006298","authorId":3582433174006298,"name":"Nongren","avatar":"https://static.tigerbbs.com/ae67943fc05548af1bd04d64112e1668","vip":1,"crmLevel":8,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9946578299,"type":1,"supId":0,"prevId":0,"content":"a","text":"a","html":"a"}],"langContent":"EN"},{"id":9946615492,"gmtCreate":1680939302716,"gmtModify":1680939306498,"author":{"id":"3571345352614779","authorId":"3571345352614779","name":"xiaobaii","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"3571345352614779","idStr":"3571345352614779"},"htmlText":"like &amp; comment please","listText":"like &amp; comment please","text":"like & comment please","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9946615492","repostId":2325592033,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9946611099,"gmtCreate":1680937318512,"gmtModify":1680937323612,"author":{"id":"4128529562415932","authorId":"4128529562415932","name":"Grumpy Cat","avatar":"https://community-static.tradeup.com/news/1a6e0322f5b01c133535886ac9ddb5ef","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"4128529562415932","idStr":"4128529562415932"},"htmlText":"I often wonder that if the stock market is so fragile that when one person says something to cause a company to collapse if it's really worth while&nbsp;investing in the first place.","listText":"I often wonder that if the stock market is so fragile that when one person says something to cause a company to collapse if it's really worth while&nbsp;investing in the first place.","text":"I often wonder that if the stock market is so fragile that when one person says something to cause a company to collapse if it's really worth while investing in the first place.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9946611099","repostId":2325592033,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":106247843,"gmtCreate":1680939314636,"gmtModify":1680939317868,"authorId":3571345352614779,"author":{"id":3571345352614779,"idStr":"3571345352614779","authorId":3571345352614779,"name":"xiaobaii","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9946611099,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">like &amp; 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