Investment management company Kerrisdale Capital released an investor letter in March about its short position in C3.ai, Inc. (NYSE:AI). A copy of the same can be downloaded here. You can check the top five holdings of the firm to know its best picks in 2022.
Headquartered in Redwood City, California, C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company. On March 28, 2023, C3.ai, Inc. (NYSE:AI) stock closed at $24.39 per share. One-month return of C3.ai, Inc. (NYSE:AI) was 17.66%, and its shares gained 5.68% of their value over the last 52 weeks. C3.ai, Inc. (NYSE:AI) has a market capitalization of $2.737 billion.
Kerrisdale Capital made the following comment about C3.ai, Inc. (NYSE:AI) in the investor letter:
“We are short shares of C3.ai, Inc. (NYSE:AI), a $4 billion market capitalization enterprise software company that has risen from the ashes of its busted IPO based on the misconception that its self-proclaimed “AI leadership” somehow positions it to benefit from Silicon Valley’s current tech theme du jour: generative AI as represented by media obsession ChatGPT. We believe these speculative flames won’t burn bright much longer, as the realities of C3’s poor customer traction, failing sales partnerships, and financial pressures will catalyze what is likely to be a painful reality check.
This isn’t the first time C3 has sought to ride a hot investment theme. The company was originally founded as C3 Energy to develop analytics solutions for public utilities preparing for the emergence of cap-and-trade and smart grids. C3 pivoted in 2016, renaming the company C3 IoT to capitalize on that buzzy opportunity. But management’s master stroke was rebranding operations as C3.ai in 2019 and going public with the “AI” stock ticker, thus securing its place as the default artificial intelligence stock play for the undiscriminating investor despite the bulk of its business coming from relatively dated analytics models built for a very small number of utility, energy, and government customers. C3 is a minor, cash-burning consulting and services business masquerading as a software company, and its true value is a fraction of its current market capitalization…” (Click here to read the full text)
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C3.ai, Inc. (NYSE:AI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held C3.ai, Inc. (NYSE:AI) at the end of the fourth quarter which was 18 in the previous quarter.
We discussed C3.ai, Inc. (NYSE:AI) in another article and shared the list of best AI stocks for 2023. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
