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What the numbers say: C3.ai's share prices suffered with other tech stocks throughout 2021 and 2022, down 88% this week from its all-time high in 2020. Fresh interest in AI-powered applications helped lift its profile in 2023, though its quarterly net income has remained at -$72M for the past three reporting periods. Relevance: C3.ai's stock price dropped 15.47% for the day Wednesday as the AI application software company responded to allegations made by short-seller Kerrisdale Capital Management in a letter to C3.ai's auditor, Deloitte. Kerrisdale accused C3.ai of using accounting methods "concealing significant deterioration in its underlying operations." In C3.ai's response, the company asserted the "accounting disclosures and financial statement referenced in the letter have been reviewed by our independent audit firm" and were found to be "complete and correct." Brands that should care: OpenAI and Alphabet stoked public interest in AI-centered businesses with their recent chatbot releases. AI-linked stocks, including C3.ai, benefited from this public fascination in an otherwise difficult climate for tech. |
