Shares of enterprise software provider C3.ai Inc (NYSE:AI) are trading lower Tuesday morning, giving back some gains after a Reuters report late Monday stated the company is exploring a potential sale. Here’s what investors need to know.
- AI is taking a hit from negative sentiment. Check out the latest moves here.
What To Know: According to sources cited by Reuters, the sales process is in its early stages, and other options like raising funds from private investors are also on the table. The news follows founder Thomas Siebel's recent decision to step down as CEO due to health concerns.
The potential sale follows a turbulent year for the company. C3.ai’s stock has fallen around 55% year-to-date.
Siebel was replaced as CEO by Stephen Ehikian on Sep. 1. That leadership change coincided with the company withdrawing its full-year financial outlook.
The withdrawal followed a disappointing first quarter, where C3.ai missed analyst estimates on both revenue and profit. The company reported an adjusted loss of 37 cents per share, far worse than the 20-cent loss expected.
At the time, Siebel called the first-quarter financial performance “completely unacceptable.” Management also guided second-quarter revenue below consensus estimates.
Benzinga Edge Rankings: Reflecting the stock’s poor performance, Benzinga Edge rankings show a negative price trend across short, medium and long-term outlooks.
AI Price Action: C3.ai shares were down 5.10% at $15.26 at the time of publication on Tuesday. The stock is trading near its 52-week low of $14.70, according to Benzinga Pro data.
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How To Buy AI Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in C3.ai’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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