C3.ai Stock Is Still Too Pricey Despite Its Sharp Correction

InvestorPlace2021-09-22

AI stock is trading at more than 21 times forward sales with unimpressive growth rates. Shares of enterprise AI platformC3.ai(NYSE:AI)have cooled off considerably from their highs in February. Most ...

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Calvinq
·2021-09-22
Like pls. AI ?
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ZeonLeong
·2021-09-22
like tq
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ALi_BaBa
·2021-09-22
Great
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ACCY
·2021-09-22
Wow… when to go in then?
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- ALi_BaBa:
  Like
  2021-09-22
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ssw04104
·2021-09-22
是
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- ssw04104:
  胡
  2021-09-22
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XIN90
·2021-09-22
:(
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YenChing
·2021-09-22
I
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- Bliang:
  A
  2021-09-22
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Most ...</p>\n\n<a href=\"https://investorplace.com/2021/09/ai-stock-is-still-pricey-despite-its-sharp-correction/\">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://investorplace.com/2021/09/ai-stock-is-still-pricey-despite-its-sharp-correction/","article_id":"1124142626","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1124142626","pubTimestamp":1632316572,"sourceInfo":{"source_id":"lsy1606302653667","name":"InvestorPlace"},"weMediaInfo":null,"summary":"AI stock is trading at more than 21 times forward sales with unimpressive growth rates.\n\nShares of e","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"AI":"C3.ai, Inc."},"translate_title":"C3.AI股票尽管大幅回调，但仍然太贵","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AI":0.9},"content_text":"AI stock is trading at more than 21 times forward sales with unimpressive growth rates.\n\nShares of enterprise AI platformC3.ai(NYSE:AI)have cooled off considerably from their highs in February. 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Though some buy-the-dip opportunities can arise in the future, at this point, the stock is still overpriced.\nOperating Performance Behind AI Stock\nC3.ai recently posted its first-quarter results where its bottom-line losses widened from the prior-year period.Its revenues rose to $52.4 million, representing a healthy 29% increase on a year-over-year basis. Additionally, subscription revenues of $46.1 million increased by a substantial 29% from the same period last year. At the same time, it posted a massive net loss of $37.5 million compared to a minuscule profit of $150,000 from the prior year period.\nLooking ahead, it expects second-quarter revenues to come in at $56 million to $58 million, which is in line with analyst estimates. Similarly, its full-year revenue forecast of$243 million to $247 millionis also in line with consensus estimates.\nOn paper, the top-line results may seem impressive but considering its past performance, and it’s a step backward. Revenues increased 88%, 48%, and 71% in 2018, 2019 and 2020, respectively. However, in fiscal 2021 the company’s revenues rose just 17%. The management has blamed the pandemic-fueled slowdown, which disrupted the energy and industrial markets, accounting for most of its sales.\nThe company expects its operating losses to widen from $60.3 million to over$107 millionin fiscal 2022 as it looks to ramp up its investments. CFO Dave Barter laid out the company’s intention to “invest thoughtfully in headcount in programs to accelerate our revenue growth.”\nThe Bear Case Is More Compelling\nSo far, the bear case for C3.ai has won out. For starters, the company has a colossal valuation of over $5.2 billion and trades at over 21x forward sales. Forward revenue estimates are at just 28%, which is considered quite normal in the enterprise software business. 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