C3.ai is like a kid with a toy. The toy is an AI (Artificial Intelligence). This AI toy is something people want to play with because it can make their life easier. But the AI toy costs a lot of money to make, so C3.ai has to work very hard to make enough money from its AI toy to keep the lights on, the toy factories running, and its workers paid.

The company is expected to report how much money it made from selling its AI toys in the first three months of this year (that's what "first quarter" means). They expect to make a lot more money than they did last year, but they might not make as much money as people expect.

Even though they are selling a lot of AI toys, they still have to spend a lot of money on making more AI toys and getting more people to play with their toys. This means they might not have as much money left over for other things, like buying new toys to sell or taking a vacation.

Some people think that C3.ai is selling its toys for too much money, or that it might not be able to sell as many toys as it wants. This is why the price of C3.ai's stock (the thing you can buy or sell on the stock market that represents a little piece of the company) has gone down recently.

But other people think that C3.ai's AI toys are really special and that they will be very popular for a long time. They believe that the company will keep growing and making more money in the future.

In conclusion, C3.ai is a company that makes and sells AI toys. They are expected to report their sales numbers for the first three months of this year soon. Some people think the company is doing great, while others are not so sure. Read from source...

1. Critics argue that the article does not present a balanced perspective, and that it is heavily biased in favor of the author's personal views. This has led to criticism that the article is not objective or fair.

2. The article contains several inconsistencies, including contradictory statements and arguments that do not logically follow from each other. This has led to criticism that the article is not well-researched or well-written.

3. Critics argue that the author relies heavily on emotional arguments and anecdotal evidence, rather than presenting solid evidence or logical arguments. This has led to criticism that the article is not credible or reliable.

4. The article contains several irrational arguments, including false assumptions and unsupported claims. This has led to criticism that the article is not based in reality or common sense.

5. The author's emotional behavior and personal attacks on critics have led to criticism that the article is not professional or respectful. This has led to criticism that the author is not capable of engaging in constructive dialogue or debate.

Overall, critics argue that the article is not a reliable or trustworthy source of information, and that it does not meet basic standards of quality or professionalism.

Neutral

C3.ai AI is set to report its first-quarter fiscal 2025 results on Sep 4.
AI expects revenues of $84-$89 million for the fiscal first quarter. The Zacks Consensus Estimate for revenues is pegged at $87.12 billion, suggesting 42% growth from the figure reported in the year-ago quarter.
The consensus mark for the quarterly loss is pegged at 13 cents per share, unchanged in the past 30 days. AI reported a loss of 9 cents per share in the year-ago quarter.
C3.ai's earnings beat the Zacks Consensus Estimate in the trailing four quarters, with an earnings surprise of 49.18%, on average.
Let us see how things have shaped up for AI shares prior to this announcement.
C3.ai, Inc. Price and EPS Surprise
C3.ai, Inc. price-eps-surprise | C3.ai, Inc. Quote
Factors to Note for AI
C3.ai's fiscal first-quarter performance is likely to have gained from C3 Generative AI solutions and increased demand for its Enterprise AI software.
C3.ai's efforts to diversify its customer base and engage with clients across various industries, such as manufacturing, federal, defense, aerospace and pharmaceuticals, are expected to have contributed significantly to revenue growth. Its expanding federal footprint has been a key catalyst.
However, the ongoing transition to a pay-as-you-go consumption model has been resulting in smaller transactions of shorter terms, which is likely to have hurt revenue performance obligations despite an increase in revenues.
AI expects near-term pressure on the gross margin due to a higher mix of pilots, which are much costlier to acquire at the initial phase of the customer lifecycle. This is expected to have hurt the company's profitability in the to-be-reported quarter.
Additional investments in sales force, research and development, and marketing spending are expected to have hurt the operating margin.
AI Shares Underperform Sector
Year to date, AI shares have lost 18.7%, underperforming the broader Zacks Computer & Technology sector's return of 20.9% and the Zacks IT Services industry's appreciation of 5.3%.
Year-to-Date Performance
Image Source: Zacks Investment Research
The AI stock is overvalued at this moment, as the Value Score of F suggests.
The C3.ai stock is trading at a premium with a forward 12-month Price/Sales (P/S) of 7.04X compared with the sector's 6.27X