C3.ai, Inc. (NASDAQ:AI) stock is trending ahead of the company’s second-quarter earnings report, which is expected after the market closes.
- AI is demonstrating bullish strength. Check the fundamentals here.
What To Know: Analysts estimate that C3.ai will report an adjusted loss of 33 cents per share for the second quarter. Revenue is expected to come in at $74.86 million, according to estimates from Benzinga Pro.
Last quarter, the enterprise AI company based in Redwood City, California, reported a loss of 37 cents per share and revenue of $70.26 million, representing a significant drop from the $108.7 million it reported in the prior quarter. Revenue was the lowest it’s been since early 2023, and the company owned it.
Former CEO Thomas Siebel said the company’s performance last quarter was “completely unacceptable.” He attributed the fall in revenue to a disruptive combination of sales and services teams and personal unanticipated health issues that prevented him from participating in sales. He admitted his participation had a greater impact than he previously thought.
“The good news is we have completely restructured the sales and services organization, including new and highly experienced leadership across the board to ensure a return to accelerating growth and increased customer success at C3 AI,” Siebel said at the time.
Siebel was replaced by Stephen Ehikian in September. The company also recently added a new board member, a new chief commercial officer and started an initiative to license the C3 Agentic AI Platform, which builds and commercializes Enterprise AI applications. The company said it closed 12 agreements across the federal sector, which accounts for 28% of total bookings.
Multiple analysts maintained Hold and Underweight ratings, cutting price targets following the print last quarter. Analysts and investors will be watching for signs of a turnaround when the company reports fresh results after the market close.
AI Analysis: C3.ai is trading approximately 13.1% below its 50-day moving average and about 30.9% below its 200-day moving average. These figures suggest that the stock is in a bearish trend over both the short and long term, as it struggles to gain upward momentum.
The stock has seen a 52-week range between $12.59 and $45.08, highlighting its volatility and the potential for significant price swings. The current price of $14.48 is closer to the lower end of this range, which may serve as a psychological support level for investors looking to enter or add to positions.
Intraday, the stock opened at $14.34, reached a high of $14.75, and found support at a low of $14.17. The ability to hold above the $14.17 level may provide a short-term support base, while the high of $14.75 could act as an immediate resistance point that traders will be watching closely.
AI Price Action: C3.ai shares were up 1.64% at $14.62 at the time of publication on Wednesday, according to Benzinga Pro.
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