Weakness can often lead to big opportunities.
Look at AI stock, C3 Ai (AI) for example.
The stock plummeted from about $34 to $20.50. All after short sellers at Kerrisdale alleged that “C3’s financial statement does not reflect underlying business fundamentals and instead is used ‘as a tool to fool market participants by painting a false portrait of a company’s profit and loss,’” as noted by MarketWatch.
However, according to C3 AI, the allegations carry no weight.
In fact, according to CEO Tom Seibel the report was nothing more than “stock price manipulation,” as noted by Bloomberg. The letter contained “not a word of truth. It was a very creative, very successful attempt at what appears to be successful stock price manipulation.”
Fortunately, the response seems to have put an end to the C3 AI falling knife. Last checked, the AI stock was up 8% on a volume spike to 54.7 million shares, as compared to daily average volume of 23.5 million.
Helping, over the last few weeks, D.A. Davidson analyst Gil Luria just initiated coverage of AI with a buy rating, with a $30 price target. “We believe that C3.ai is a truly scarce asset in a critical software arena and that the emergence of generative AI as a ‘killer app’ for Artificial Intelligence provides C3.ai with the opportunity to monetize its considerable investment and track record in the field of Artificial Intelligence,” as quoted by Barron’s.
From a current price of $22.76, we’d like to see AI challenge resistance around $34 again. From there, with patience, it could double with the AI story booming.
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