2 Red-Hot AI Stocks That Have Already Peaked, According to Wall Street
Are you thinking about jumping on the bandwagon in artificial intelligence (AI) stocks? You may want to take a closer look at valuations before doing so, as some stocks are trading at significantly high premiums right now. Two stocks that Wall Street analysts think are due for steep declines are C3.ai (NYSE: AI) and Upstart Holdings (NASDAQ: UPST).
AI stock C3.ai has skyrocketed 250% this year, even though its results haven't been groundbreaking or its guidance all that impressive. The company's operations remain unprofitable and revenue last quarter was flat, showing minimal growth from the previous year.
Even though analysts have been raising their price targets for the tech stock, the consensus analyst price target is just $24.36, which implies a downside risk of nearly 40% from where C3.ai's stock trades right now. The stock is trading at a multiple of 15x revenue and over 4x its book value.
Source Fool.com
