3 Reasons to Sell C3.ai Stock Before It's Too Late
With shares up by a whopping 182% year to date, C3.ai (NYSE: AI) has been one of the big beneficiaries of the stock market's artificial intelligence (AI) craze. The company's catchy name (which was conveniently selected in 2019) seems to have put it in the right place at the right time. But all that glitters is not gold. Let's discuss three reasons investors might want to avoid this high-flying stock.
C3.ai did not always focus on artificial intelligence. The company has a track record of changing its business (and name) at times that are suspiciously coincidental with investment hype cycles. Since its founding in 2009, what is now known as C3.ai has renamed itself several times: from C3 to C3.Energy to C3.IoT -- reflecting business strategy changes from renewables to the Internet of Things and now to AI.
It is unclear what motivated these many business pivots. But in the best-case scenario, it could imply a lack of managerial focus. At worst, it suggests the company attaches itself to trends to distract investors from its lackluster operational performance. And while public financial data isn't available for C3.ai's previous iterations (it was privately held at the time), the company's current results leave much to be desired.
Source Fool.com
