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The ongoing platform shift will be “as consequential as the internet,” analysts write in an initiation note.
“C3 has built a unique AI platform enabling it to be the first “enterprise AI application software provider,” accounting for ~70% of revenue. It was first to enter this market in 2009 (as C3 Energy, then C3 IoT, now C3.ai) to prefigure the basic contours of this new AI Age. The disruptive technological breakthrough from OpenAI/MSFT further supports C3.ai platform adoption,” analysts said.
Despite being very positive about C3’s business and sector trends, analysts are sidelined following a ~200% YTD rally in AI shares.
“High management turnover (three CFOs since 2020), auditor changes (three auditors in eight years), consumption model transition, and high stock comp and transition to GPT are also risks to the valuation,” analysts also said.
