Sign InC3.ai Stock Undergoes Short-Term Bullish Trend Amid Financial Concerns
Summary
On June 26, 2023, C3.ai, Inc.'s stock closed at $31.96 with a 4.28% fall, despite trading above its 50-day and 200-day moving averages, and the stock is undergoing a short-term bullish trend according to technical analysis, but investors should be cautious due to disappointing financial performance and modest revenue growth guidance.
Technical Analysis
C3.ai, Inc. (NYSE: AI) stock closed at $31.96 on June 26, 2023, falling 4.28%. The day's trading range was between $31.69 and $35.48. AI's 14-day relative strength index (RSI) of 44 indicates a neutral market momentum. The stock is trading above its 50-day moving average of $28.05 and its 200-day moving average of $19.40, indicating a positive market trend. Additionally, the moving average convergence divergence (MACD) of 5.53 in the last 3 months shows a bullish signal.
Fundamental Analysis
AI has a market capitalization of $3.69 billion with 115.61 million shares outstanding. The stock's earnings per share (EPS) is -$2.10, and it trades at a price-to-earnings (PE) ratio of -15.22. The average trading volume is 30.28 million shares per day.
The discounted cash flow (DCF) for AI is calculated at $34.55, which is higher than the current stock price. Analysts have set a target high of $31, a target low of $13, a target consensus of $22.01, and a median target of $19.54.
Recent news articles suggest that investors should be cautious about AI's modest guidance for revenue growth of 15% this year. The company's CEO made a shocking statement that surprised stock market investors. Also, it was reported that AI stocks are set to snap their five-session losing streak after an analyst provided an optimistic take on the enterprise-software company's potential. Recent AI-driven technologies helped AI stock surge, but investors should still be cautious as its financial performance has been disappointing.
Stock Price Prediction
Based on technical indicators, AI stock appears to be undergoing a short-term bullish trend. The next trading day on June 27, 2023, the stock price could experience moderate gains from its last close of $31.96. However, considering the 50-day moving average of $28.05 and recent news articles, AI's stock price could face resistance to move significantly higher over the upcoming week.
Final Evaluation
Considering the bullish technical indicators, AI's stock price could have short-term gains. Nonetheless, its disappointing financial performance, modest revenue growth guidance, and analysts' median target of $19.54 indicate that the stock is overvalued at its current price. Therefore, C3.ai, Inc. (NYSE: AI) stock is a Hold for investors with a cautious view on the company's long-term performance.
