Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 27 Jun, 25 | AI | Speculative Buy | USD 24.72 | USD 26.2 | USD 27.5 | 12 days | Closed |
11.57%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI CRM Suite, an industry specific customer relationship management solution; and C3 Generative AI that enables to locate, retrieve, present information, disparate data stores, applications, and enterprise information systems. It also offers C3 AI applications, including C3 AI Inventory Optimization that analyzes variability across demand, supply, and production and optimizes inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, government, defense, intelligence, aerospace, retail, transportation, healthcare, and telecommunications market. It has strategic partnerships with Google Cloud, AWS, Microsoft Azure, Baker Hughes, Booz Allen, Raytheon, FIS, and others. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.
Partner Network Surge: Partner-supported bookings in Q4 grew 419% year-over-year, indicating enhanced go-to-market execution
Revenue Growth: Fiscal year revenue increased by 25%, reaching USD 389.1 million
Moderate Subscription Growth: Despite overall revenue growth, subscription revenue grew only 9% in Q4, showing deceleration in a key recurring revenue stream
Persistent Losses: Full-year GAAP net loss per share was USD (2.24); non-GAAP net loss per share was USD (0.41), indicating continued unprofitability
C3 AI’s reliance on strategic alliances and its ongoing inability to achieve profitability despite substantial revenue growth pose significant execution and scalability risks in a highly competitive enterprise AI market
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 24.72 | 22.8 | 26.2 | 27.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Fiscal Q4 and Full-Year Revenue Growth: C3 AI reported strong financial results for its fiscal fourth quarter and full fiscal year ended April 30, 2025. Quarterly revenue reached USD 108.7 million, representing a 26% increase year-over-year. Full-year revenue rose 25% to USD 389.1 million, compared to USD 310.6 million in the prior year. Subscription revenue accounted for 80% of total Q4 revenue and 84% for the fiscal year, showing year-over-year growth of 9% and 18% respectively. The combination of subscription and prioritized engineering services made up 96% and 95% of Q4 and full-year revenue, respectively.
Improved Gross Margins but Continued Losses: The company demonstrated solid profitability metrics on a non-GAAP basis. Q4 non-GAAP gross profit was USD 75.2 million, yielding a 69% margin, while the full-year figure stood at USD 270.6 million with a 70% margin. On a GAAP basis, gross margins were slightly lower at 62% for the quarter and 61% for the year. However, C3 AI remains unprofitable, posting a Q4 GAAP net loss per share of USD (0.60) and full-year loss of USD (2.24). Even on a non-GAAP basis, the company recorded net losses of USD (0.16) for Q4 and USD (0.41) for the year.
Strategic Alliances and Partner Ecosystem Expansion: C3 AI significantly expanded its partner ecosystem during the year, renewing and deepening alliances with major technology companies including Microsoft, AWS, Google Cloud, and McKinsey QuantumBlack. The company closed 193 agreements through partners in FY25, up 68% year-over-year, accounting for 73% of all agreements. Notably, partner-supported bookings increased by 419% in Q4 alone. C3 AI and Microsoft jointly closed 28 agreements in Q4 and collaborated on over 100 joint customer meetings, indicating a strong and effective go-to-market partnership.
Sector Diversification and Federal Market Momentum: The company diversified its industry reach, generating revenue across 19 sectors, with non–Oil & Gas revenues rising 48% year-over-year. Federal business also gained traction, contributing to 20% of total bookings through 51 agreements in FY25. A key federal development was the increase of the U.S. Air Force's PANDA predictive maintenance platform contract ceiling from USD 100 million to USD 450 million, expanding C3 AI’s footprint across aircraft and support systems.
Generative and Agentic AI Product Advancements: C3 AI’s Generative AI business saw revenue growth exceeding 100% year-over-year, closing 66 initial production deployment agreements across 16 industries. Innovations such as omni-modal parsing, dynamic multi-agent planning, and on-the-fly custom visualizations enhanced the product's differentiation in the enterprise AI space. The Shoah Foundation’s adoption of C3 Generative AI, expected to save USD 33 million in costs, illustrates the solution’s impactful real-world utility.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Speculative Buy’ recommendation has been given on C3.ai, Inc (NYSE: AI) at the closing market price of USD 24.72, as on June 26, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Application
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| AI C3 Ai Inc |
0.01 0.05% | 28.38 | - | - | 16.27 | 5.88 | 13.49 | -2.2963 |
| CRM Salesforce.com Inc |
-0.1877 0.07% | 259.69 | 100.89 | 27.47 | 7.42 | 4.34 | 7.44 | 26.81 |
| SAPGF SAP SE |
1.10 0.36% | 308.25 | 76.28 | 22.88 | 5.61 | 3.84 | 5.59 | 26.18 |
| SAP SAP SE ADR |
-2.68 0.87% | 305.93 | 75.80 | 22.37 | 5.62 | 3.75 | 5.51 | 25.79 |
| INTU Intuit Inc |
-2.93 0.39% | 752.44 | 55.56 | 32.68 | 11.28 | 10.07 | 11.62 | 40.11 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Jun 26,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
