Could C3.ai Stock Help You Become A Millionaire?
C3.ai (: AI) has been a volatile and divisive stock ever since its public debut in Dec. 2020. The enterprise artificial intelligence (AI) software company priced its IPO at $42, and its stock more than quadrupled to an all-time high of $177.47 that same month. Investors were initially drawn in by its rapid revenue growth and catchy ticker symbol.
At its peak, C3.ai’s enterprise value hit $16.7 billion, or 91 times the revenue it would actually generate in fiscal 2021 (which ended on April 30, 2021). That bubbly valuation became unsustainable as its growth cooled off, it racked up more losses, and rising interest rates broadly drove investors away from speculative tech stocks.
C3.ai’s stock sunk to $11 by the end of 2022, yet it has quadrupled to about $44 since the beginning of 2023. Nearly all of that growth was driven by the recent buying frenzy in AI-related stocks.
The bulls claim C3.ai will profit from the expansion of the AI market, while the bears dismiss its comeback as unsustainable market hype. Should you listen to the bulls and believe C3.ai will make you a millionaire by generating some big multibagger gains over the next few years? Or is this just another meme stock that deserves to trade a much lower valuation?
