With AI and machine learning poised for increased adoption, C3.ai aims to be a leader in enterprise AI software. However, intense competition in AI sector has led to high volatility in the company’s stock. In this analysis, we will look at comprehensive C3.ai stock forecast from 2023 to 2050, which will help you whether C3.ai is a smart long-term investment.
About C3.ai (AI)
C3.ai is a leading provider of enterprise AI software founded in 2009 by Tom Siebel. The company is headquartered in Redwood City, California.
C3.ai offers a comprehensive suite of software-as-a-service (SaaS) applications including capabilities for developing, deploying, and operating enterprise AI applications. The C3 AI Suite leverages machine learning, predictive analytics, natural language processing, and other techniques to enable organizations to rapidly build AI-based solutions.
C3.ai serves customers globally across a wide range of industries including financial services, healthcare, manufacturing, oil and gas, defense, and intelligence. The company has strategic partnerships with technology leaders like Microsoft, AWS, and Google Cloud.
The company went public in December 2020, with its shares priced at $42 each under the ticker AI. As of October 2023, C3.ai has a market capitalization exceeding $2.93 billion.
It holds an impressive portfolio of over 100 global patents in the fields of AI, machine learning (ML), and data security. With a diverse clientele of over 250 enterprise customers, the company serves well-known entities like Shell, AstraZeneca, and the U.S. Air Force.
C3.ai (AI) Price History
C3.ai went public in December 2020, opening at $42 per share on the NYSE. The stock rapidly climbed in early 2021, driven by hype around artificial intelligence companies. This enthusiasm culminated in C3.ai hitting an all-time high price of $176.94 in February 2021, shortly after its IPO.
However, the tide turned in March 2021 when C3.ai’s first earnings release missed Wall Street targets. This initial post-IPO performance disappointment marked a turning point, ushering in a prolonged downtrend for the stock.
Throughout 2021 and 2022, C3.ai stock grappled with growing skepticism regarding its valuation and concerns over the company’s growth trajectory. Additional negative catalysts, such as the tech selloff and rising interest rates, further accelerated the decline.
Then, in May 2022, C3.ai announced significant job cuts. This news led to a 17% single-day stock drop as investors grew worried about the company’s slowing growth. By October 2022, shares had hit multi-year lows around $11 amidst rising recession fears.
While C3.ai stock has since recovered slightly from its lowest point, it still remains down approximately 80% from its all-time high, with challenges around market position and profitability continuing to loom large.
Below is the price history table for C3.ai, providing a yearly snapshot of the stock’s performance. This table can offer investors a clearer understanding of the stock’s movement and trends over time.
| Date | Open | High | Low | Close | Adj Close | Volume |
|---|---|---|---|---|---|---|
| Jun 01, 2023 | 23.80 | 24.98 | 23.56 | 24.75 | 24.75 | 4,881,801 |
| Jun 01, 2022 | 32.76 | 48.87 | 30.26 | 36.43 | 36.43 | 787,467,500 |
| Jun 01, 2021 | 62.50 | 76.85 | 56.03 | 62.53 | 62.53 | 113,381,600 |
C3.ai (AI) Financial Details
C3.ai generated $257.2 million revenue in the last 12 months, showcasing its ability to secure significant sales from its AI software offerings and services. But, the company hasn’t reached profitability yet, with a reported net loss of $192.2 million.
The company posted a gross profit of $179.2 million, which translates to a robust 69% gross margin. This healthy margin suggests that C3.ai’s AI software is quite profitable on a variable cost basis, before taking R&D and SG&A expenses into account.
However, C3.ai reported an EBITDA loss of -$112.4 million. This loss is primarily due to its substantial operating expenses, as the company is heavily investing in growth. Consequently, the company’s Earnings Per Share (EPS) stood at -$0.44.
Since the company has negative earnings, it doesn’t have a valid Price-to-Earnings (PE) ratio. Nevertheless, its Price-to-Sales ratio is 26.02, indicating that the stock might be overvalued when compared to its revenue generation. Similarly, The Price-to-Book ratio is high at 16.96, suggesting that the market values the company significantly higher than its book value.
While C3.ai shows significant potential for revenue generation, but it hasn’t been profitable due to high spending. However, this financial profile is quite common among high-growth software stocks that are willing to sacrifice short term growth to boost revenue and expand their market presence.
C3.ai (AI) Stock Forecast & Price Prediction
Below is a table with C3.ai stock forecast from 2023 to 2050 based on the historical data and current company financials.
| Year | Average Price | Maximum Price | Minimum Price | % Change |
|---|---|---|---|---|
| 2023 | $28.34 | $36.21 | $25.67 | +29.34% |
| 2024 | $38.45 | $46.52 | $34.13 | +70.23% |
| 2025 | $50.67 | $60.89 | $45.72 | +123.45% |
| 2026 | $64.78 | $74.13 | $59.96 | +179.28% |
| 2027 | $77.56 | $87.21 | $72.45 | +232.78% |
| 2028 | $98.34 | $108.76 | $93.12 | +317.23% |
| 2029 | $123.67 | $133.89 | $118.56 | +418.23% |
| 2030 | $145.12 | $155.67 | $140.34 | +506.78% |
| 2040 | $405.23 | $443.21 | $383.78 | +1604.23% |
| 2050 | $629.76 | $678.34 | $608.12 | +2563.12% |
C3.ai (AI) Stock Forecast & Prediction 2023
In 2023, we expect C3.ai’s stock to reach an average valuation of $28.34. The estimated high is $36.21, and the low is $25.67, representing a potential upside of 29.34%. Growth next year could be supported by expanding partnerships, like the recent alliance with Palantir.
C3.ai (AI) Stock Forecast & Prediction 2024
For 2024, our forecast suggests C3.ai’s stock might hit an average of $38.45. With a high prediction of $46.52 and a low estimate of $34.13 per share, this would mean a 70.23% increase. New product releases focusing on hybrid cloud capabilities are expected to benefit C3.ai as enterprise AI adoption grows.
C3.ai (AI) Stock Forecast & Prediction 2025
In 2025, C3.ai’s stock valuation is predicted to average $50.67 per share. The optimistic target is $60.89, and the conservative estimate is $45.72, marking a 123.45% upside. The artificial intelligence software market is expected to surpass $300 billion by 2025, offering substantial growth opportunities.
C3.ai (AI) Stock Forecast & Prediction 2026
By 2026, we forecast C3.ai stock could trade around $64.78 on average, translating to 179.28% returns if current growth rates continue through new customer acquisitions and expanded use cases. However, the risk of slower growth due to increasing competition is present.
C3.ai (AI) Stock Forecast & Prediction 2027
In 2027, the stock price of C3.ai might reach an average of $77.56 per share, showing approximately 232.78% upside if the company continues to penetrate the enterprise AI market. Yet, the fast pace of technological change introduces uncertainty over the long-term outlook.
C3.ai (AI) Stock Forecast & Prediction 2028
For 2028, our price prediction for C3.ai is an average stock value of $98.67, which would represent approximately 317.45% returns.
C3.ai (AI) Stock Forecast & Prediction 2029
If C3.ai maintains its strong growth trajectory, the 2029 forecast sees the stock potentially reaching an average of $123.45 per share, reflecting a rally of more than 418.76%.
C3.ai (AI) Stock Forecast & Prediction 2030
By 2030, our models suggest an average valuation of $145.76 for C3.ai’s stock, with returns possibly exceeding 506.89%.
C3.ai (AI) Stock Forecast & Prediction 2040
Looking further ahead to 2040, we project an average stock price of $404.23 per share for C3.ai.
C3.ai (AI) Stock Forecast & Prediction 2050
Lastly, our 2050 forecast predicts C3.ai might trade around $629.56 per share on average.
C3.ai (AI) Stock: Buy, Sell, or Hold?
Based on the most recent analyst consensus ratings, C3.ai receives a moderate hold rating. The average analyst recommendation stands at 2.71 out of 5 stars, leaning towards a neutral outlook.
Regarding the analysts covering C3.ai:
- One analyst rates it as a Strong Buy with a high price target.
- One analyst rates it as a Buy.
- Eight analysts give it Hold ratings.
- One analyst ranks it as a Sell.
- Three analysts assign C3.ai a Strong Sell rating.
The average analyst price target for C3.ai is $28.40. This target suggests approximately a 15% upside from the current levels.
Analysts have mixed views on C3.ai, advising caution for investors thinking about buying its stock. While a few analysts see potential value in the stock’s current price, most are neutral or bearish due to concerns about the company’s performance.
C3.ai (AI) FAQs
Is C3.ai stock a good long-term investment?
C3.ai has potential for strong growth long-term if it can solidify leadership in enterprise AI software. According to analyst, the C3.ai stock can reach around $145 by 2030. But, there are risks of high competition since tech companies such as Microsoft, AWS, and Google with far greater resources can dominate the AI field. Also, Turning the company profitable could take many years, making the stock slightly risky.
Why is C3.ai stock dropping?
C3.ai has declined over 80% due to missing growth targets, tech sector weakness, lawsuits, and market concerns over unprofitability.
What are analysts predicting for C3.ai’s stock price in 2023?
Consensus estimates see C3.ai averaging around $28 per share in 2023, representing moderate upside from current levels.
Does C3.ai pay a dividend?
No, C3.ai does not pay dividends on its stock. The company is investing earnings into growth.
Q: What is C3.ai’s market capitalization?
C3.ai’s current market capitalization is approximately $257 million.
Who are C3.ai’s major competitors?
Top competitors include Microsoft, AWS, Google Cloud, IBM Watson, and other AI/cloud leaders.
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Disclaimer: The projections and price targets provided for AI” are solely for informational and educational purposes and should not be treated as investment or financial advice. Always conduct your own research or consider consulting with a financial advisor before making any investment decisions.
