C3.Ai is scheduled to report earnings after Wednesday’s close. The stock hit a record high at $183.90/share in 2020 and is currently trading near $31/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a loss of (-$0.17)/share on $$71.59 million in revenue. Meanwhile, the so-called Whisper number is a loss of (-$0.12)/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company is one of the early leaders in the artificial intelligence industry. The company has been losing money in recent years but is expected to become profitable in 2025. Investors are happy to see that management owns 26% of the company which is encouraging because it means their interests are closely aligned with other shareholders.
A Closer Look At The Technicals
Technically, the stock is recovering from a very steep bear market for most of 2021 and 2022. The stock bottomed in December 2022 near $10/share and it is currently trading above $31/share! That’s big move for 2023 but the move has been volatile. The bulls want to see the stock breakout of its current base and rally after reporting earnings. On the other hand, the bears want to see it gap down and fall.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com report.
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