Latest news with #C3.ai's
Yahoo
4 days ago
- Business
- Yahoo
Is C3.ai's Federal Business the Key to Unlocking Consistent Growth?
Inc.'s AI federal business is turning out to be one of the major growth engines amid the broader push to diversify its customer base. In fourth-quarter fiscal 2025, witnessed a major momentum in its government partnerships, headlined by a new $450 million ceiling awarded by the U.S. Air Force for the PANDA predictive maintenance platform. This system, already monitoring a wide range of aircraft, now enters a new expansion phase, reinforcing embedded value in critical national defense infrastructure. What makes the federal business so compelling is its multi-agency traction. AI-powered solutions are now integrated across the Air Force, Navy, Marine Corps and Missile Defense Agency. From supply-chain visibility in fuel logistics to predictive analytics for aircraft readiness, agentic AI and generative platforms are delivering real-time operational advantages. Importantly, this federal momentum aligns with the company's broader goal, building a stable, high-margin, recurring revenue base. While the commercial sector remains volatile, federal contracts tend to be long-term and resistant to cyclical downturns, exactly what needs to balance its startup-style volatility elsewhere. With $742.7 million in cash and a stable outlook on profitability, is laying the foundation for long-term resilience. The question is not whether the federal business is a growth lever, it already is. The real focus now is scale. If can deepen these relationships and expand AI solutions across more defense and intelligence domains, the federal sector may become the cornerstone of its growth strategy. AI's shares have gained 18.5% in the past three months compared with the industry's growth of 5%. In the same time frame, other industry players, such as Asana, Inc. ASAN and Braze, Inc. BRZE, have seen their stocks gain 7% and decline 18.2%, respectively. Image Source: Zacks Investment Research Despite the recent gain, AI is priced at a discount relative to its industry. It has a forward 12-month price-to-sales ratio of 7.14, which is well below the industry average. Meanwhile, Asana and Braze's forward 12-month price-to-sales ratios are 4.14 and 4.18, respectively. Image Source: Zacks Investment Research The Zacks Consensus Estimate for fiscal 2026 loss per share has narrowed to 36 cents (compared with a loss of 46 cents a year ago) in the past 30 days. Moreover, the consensus mark for fiscal 2027 loss per share has narrowed to 12 cents from a loss of 42 cents in the same time frame. Meanwhile, Asana and Braze's earnings in fiscal 2026 are likely to witness an increase of 269.2% and 88.2%, respectively. Image Source: Zacks Investment Research The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AI) : Free Stock Analysis Report Asana, Inc. (ASAN) : Free Stock Analysis Report Braze, Inc. (BRZE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
06-06-2025
- Business
- Yahoo
Better AI Stock: C3.ai vs. Palantir
is overcoming some of its biggest near-term challenges. Palantir's growth rates are impressive, but its valuations could be unsustainable. 10 stocks we like better than › (NYSE: AI) and Palantir (NASDAQ: PLTR) represent two different ways to invest in the booming artificial intelligence (AI) market. develops data-ingesting AI modules that can be plugged into an organization's existing infrastructure or run as standalone services. Palantir operates two main platforms -- Gotham for its government clients and Foundry for its commercial clients -- that gather data from disparate sources to spot trends and predict future challenges. went public at $42 via a traditional initial public offering (IPO) in December 2020, but it now trades at about $25. It lost its luster as its growth slowed down, it racked up steep losses, and investors fretted over its customer concentration issues. Palantir went public through a direct listing in September 2020, and its stock started trading at $10. Today, it trades at more than $130. The bulls embraced Palantir as it grew rapidly, its profits soared, and it joined the S&P 500 and Nasdaq-100. So is Palantir still a better AI play than right now? AI modules can be installed as on-premises software or via hybrid cloud deployments and public cloud infrastructure platforms to automate and accelerate custom tasks. It originally only provided subscription-based services, but in late 2022, it rolled out a consumption-based fee option to attract more customers. In its fiscal 2023 (which ended in April 2023), revenue only rose 6% as macroeconomic headwinds drove many of its customers to rein in their spending, it faced tougher competition, and its consumption-based option cannibalized its subscription sales. It also faced the looming expiration at the end of its fiscal 2025 of a joint venture with Baker Hughes that accounted for more than 30% of its revenue. Those challenges, along with a declining gross margin and ongoing losses, spooked investors. However, revenue rose 16% in its fiscal 2024 and grew by 25% in its fiscal 2025. That acceleration was driven by its new generative AI modules; its strategic partnerships with Microsoft, Amazon, and McKinsey; and fresh federal contracts. It expects its revenue to rise by 15% to 25% in fiscal 2026, while analysts on average anticipate 20% growth. also recently renewed its joint venture with Baker Hughes for another three years. That extension should buy it more time to further diversify its customer base. But it's still expected to stay unprofitable for the foreseeable future -- and it isn't a screaming bargain at 8 times this year's expected sales. So while some green shoots are finally appearing, stock probably won't rebound to its IPO price until it meaningfully widens its moat and narrows its losses. Palantir initially only provided its data analytics services to U.S. government agencies and the Defense Department, but it has since leveraged its battle-hardened reputation to lock in more commercial customers. Its revenue rose by 17% in 2023, but that was a deceleration from its 24% growth in 2022. It also broadly missed its original goal of growing its revenue by at least 30% annually through 2025. That slowdown, which was mainly caused by the challenging macro environment and the uneven timing of when it booked revenues from its government contracts, drove away a lot of its initial investors. But in 2023, it turned profitable for the first time as it reined in its spending and stock-based compensation. In 2024, Palantir's revenue rose by 29% and its earnings per share (EPS) more than doubled. That acceleration was driven by the expansion of its U.S. commercial business, which recovered for several reasons: The Federal Reserve brought interest rates back down a bit from the levels it raised them to in its battle with inflation; businesses adopted Palantir's AI tools in growing numbers to creating customized applications; and intensifying geopolitical conflicts drove the U.S. government to grant the company new contracts. This year, management expects its revenue to rise 31% and sees the company staying firmly profitable. From 2024 to 2027, analysts on average expect Palantir's revenue and EPS to grow at compound annual rates of 32% and 50%, respectively. That's an impressive growth trajectory, but its stock looks extremely expensive at 392 times this year's expected earnings and 80 times this year's expected sales. Those valuations suggest it's more of a meme stock than a growth stock. Any bad news (like a slowdown in U.S. government spending or a surprise earnings miss) could abruptly sink it. Both of these stocks are tough to recommend right now. But if I had to choose one over the other, I'd suggest nibbling on instead of Palantir. Palantir runs a tighter and more profitable ship than but it's simply too overvalued to consider buying. is still a speculative play, but it's overcoming some of its biggest issues. If it diversifies its customer base and narrows its losses, it could finally attract a lot more investors. Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and Palantir Technologies. The Motley Fool recommends and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Better AI Stock: vs. Palantir was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
05-06-2025
- Business
- Yahoo
1 Top Artificial Intelligence (AI) to Buy Hand Over Fist Before It Is Too Late
stock rocketed higher following its latest quarterly report. generative AI solutions are gaining traction among both federal government and commercial customers, suggesting future growth. attractive valuation is a solid reason to buy the stock right away. 10 stocks we like better than › Share prices of (NYSE: AI) gained more than 20% in the May 29 trading session following the release of the company's fiscal 2025 fourth-quarter results the afternoon prior. That should not have been surprising, as the enterprise artificial intelligence (AI) software provider has been capitalizing on the fast-growing adoption of this technology by both commercial and government customers. The company was well-placed to deliver stronger-than-expected results for the quarter (which ended on April 30), and that's precisely what happened: Its top and bottom lines were better than analysts' consensus estimates. Let's look at the reasons why stock is on fire right now and check why it may be a good idea for investors to buy it right away. booked $389 million in revenue in its fiscal 2025, an increase of 25% from the previous year. Management forecasts an increase of 20% in the current fiscal year at the midpoint of its guidance range. While that points toward a slower rate of growth, there is a strong possibility that will end up delivering faster growth than that this year. That's because the company's generative AI software solutions have gained impressive traction among customers, which is evident from the contracts that it has been signing of late. announced that the U.S. Air Force has signed an incremental contract worth $350 million. The updated contract -- worth a total of $450 million -- runs through October 2029, with providing an AI-powered predictive maintenance platform for monitoring components in real time across several types of aircraft. It is worth noting that closed 51 agreements with government customers last year and also expanded its existing deals with current customers, which include the Army and the Navy. Meanwhile, the company's strategy of offering its generative AI applications through cloud computing giants such as Microsoft, Amazon, and Alphabet's Google is also paying off. It closed a total of 193 agreements through its partner channel, an increase of 68% from the preceding year. Even better, points out that its 12-month potential sales pipeline through its cloud partner network has increased by 37%, suggesting that it is likely to land more business in the future. Also, its generative AI solutions were in the initial deployment phase at 36 customers at the end of the previous quarter. Given that customers tend to expand their partnerships with the company over time, it won't be surprising to see these clients boost the size of those contracts beyond what the initial deployments called for. In short, the stage seems set for to clock stronger growth in the future, and this is exactly what analysts expect. underperformance on the stock market so far this year means that investors can buy it at an attractive level right now. It is trading at just under 9 times sales, which is quite cheap when we consider that its closest peer, Palantir, trades at 105 times sales. Assuming growth indeed accelerates over the next three fiscal years, and it achieves the $705 million in revenue that analysts project, if it's still trading at its current sales multiple, its market cap would have jumped by 77% to $6.2 billion. So, investors looking to add a top AI stock to their portfolios that's trading at attractive levels and capable of delivering healthy long-term gains should consider buying Its newfound momentum seems sustainable for a long time to come. Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor's total average return is 987% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Palantir Technologies. The Motley Fool recommends and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 1 Top Artificial Intelligence (AI) to Buy Hand Over Fist Before It Is Too Late was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
05-06-2025
- Business
- Yahoo
1 Magnificent Artificial Intelligence (AI) Stock Down 84% You Might Regret Not Buying on the Dip in 2025
offers over 130 ready-made applications that make it easy for businesses to adopt artificial intelligence (AI). annual revenue growth just accelerated for the third straight year, which is a sign of significant momentum. stock is down 84% from its record high, but it's starting to look very attractive considering the size of its addressable market. 10 stocks we like better than › (NYSE: AI) was founded in 2009, long before the artificial intelligence (AI) boom captivated Wall Street. Not every business has the financial resources or technical expertise to develop AI from scratch, so many of them are turning to which supplies a portfolio of ready-made applications. went public in 2020 during a frenzy in the tech sector, which quickly drove its stock to a peak of $161. It was wildly overvalued at that price, and it has since declined by around 84%. But the stock is starting to look attractive based on the company's solid growth and enormous future opportunity, so here's why investors might want to buy the dip. serves businesses in 19 different industries including financial services, retail, manufacturing, healthcare, and oil and gas. It offers 130 turnkey AI applications that can be customized to suit the needs of each of its customers, and it can deliver a finished product within six months of an initial briefing. For banks and financial institutions, the Anti-Money Laundering application can boost successful detections by a whopping 200% compared to traditional methods, and it reduces false-positive alerts by 85%, which means human workers spend less time chasing down bad leads. The company also offers a tool called Smart Lending, which reduces the time it takes for banks to approve loans by integrating AI into the assessment process. In addition to its growing portfolio of applications, offers an agentic AI platform where businesses can create and deploy powerful virtual assistants to automate tasks, analyze data, and even make important decisions. The platform connects to over 200 third-party software and storage applications so businesses can unify their data to extract the most value from their agents. Agentic AI could unlock a global productivity boom, so investors should expect this platform to become increasingly popular. products are available through leading cloud providers like Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud. Businesses can rent the computing capacity offered by those cloud platforms to seamlessly scale their applications, so they don't need to maintain any of their own infrastructure. It makes accessible and affordable for enterprises of varying sizes. Speaking of which, closed 264 new customer agreements during its fiscal year 2025 (ended April 30), which was a 38% increase compared to the prior year. generated a record $389.1 million in revenue during fiscal 2025, which was a 25% increase compared to the previous year. That was the fastest rate of growth since fiscal 2022, and it marked the third consecutive year of acceleration, which highlights the company's momentum. Management's guidance suggests could have another record year in fiscal 2026, with as much as $484.5 million in revenue in the cards, which would represent a further increase of 25% from its fiscal 2025 result. But continues to lose money, so investors should keep a close eye on its bottom line. The company's operating costs increased across the board in fiscal 2025, which led to a net loss of $288.7 million on a generally accepted accounting principles (GAAP) basis. That was a slight uptick from its loss in the prior year. Even on a non-GAAP (adjusted) basis, which excludes one-off and noncash expenses, still lost $52.3 million. The company has a solid balance sheet with $742 million in cash, equivalents, and short-term investments on hand, so it can afford to sustain losses of that size for a few more years. However, management will have to prioritize profitability eventually or else it will need to raise more cash, which could dilute existing shareholders and negatively impact their returns. When stock peaked in 2020, its price-to-sales (P/S) ratio was over 75, which was a completely unsustainable valuation. But the 84% decline in the stock since then, combined with the company's consistent revenue growth, have pushed its P/S ratio down to just 8.3. That's actually a 13% discount to its three-year average of 9.6 (which excludes the exuberant 2020 period): CEO Thomas Siebel thinks enterprise AI could be a $1.3 trillion opportunity by 2032 (based on a report by Bloomberg), and the company's current annual revenue is a drop in the bucket by comparison. In other words, if enterprises continue turning to for their AI needs, the company could generate a mind-boggling amount of growth over the long term even if it captures just a tiny fraction of its addressable market. From that perspective, stock might be a great addition to a diversified portfolio, especially now that it's trading at a reasonable valuation. Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 1 Magnificent Artificial Intelligence (AI) Stock Down 84% You Might Regret Not Buying on the Dip in 2025 was originally published by The Motley Fool
Yahoo
29-05-2025
- Business
- Yahoo
C3.ai (AI) Shares Skyrocket, What You Need To Know
Shares of artificial intelligence (AI) software company (NYSE:AI) jumped 26.3% in the afternoon session after the company reported strong first quarter 2025 results: Revenue and adjusted operating income both beat in the quarter. Looking forward, revenue guidance for next quarter was roughly in line with Wall Street's estimates, but operating income guidance for the period was nicely above expectations. Finally, "C3 AI and Baker Hughes renewed and expanded their strategic partnership through a multi-year agreement", and this is a relief to the market as it is the largest partnership for the software company. Overall, this was a solid quarter. Is now the time to buy Access our full analysis report here, it's free. shares are extremely volatile and have had 38 moves greater than 5% over the last year. But moves this big are rare even for and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 2 days ago when the stock gained 6.3% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. is down 15.9% since the beginning of the year, and at $29.15 per share, it is trading 32.1% below its 52-week high of $42.94 from December 2024. Investors who bought $1,000 worth of shares at the IPO in December 2020 would now be looking at an investment worth $315.23. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
