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C3.ai, Inc. (AI) Stock Analysis

Recovery setup

SellVALUE-TRAP 1/5High Confidence

Technology · Software - Infrastructure

Sell if holding. Engine safety override at $8.85: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.1/10. Specifically: High short interest: 33%; Below-average business quality; Below long-term trend.

C3.ai, Inc. operates as an enterprise artificial intelligence application software company. The company offers C3 agentic AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI CRM... Read more

$8.85+9.9% A.UpsideScore 3.1/10#80 of 80 Software - Infrastructure
Stop $8.24Target $9.74(resistance)A.R:R -1.1:1
Analyst target$8.82-0.4%11 analysts
$9.74our TP
$8.85price
$8.82mean
$6
$17

Sell if holding. Engine safety override at $8.85: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.1/10. Specifically: High short interest: 33%; Below-average business quality; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 58. Score 3.1/10, high confidence.

Passes 5/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 27d clear, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.

Thesis

Rewards
No bull case signals
Risks
Target reached (-13.4% upside)
Quality below floor (3.3 < 4.0)

Key Metrics

P/E (TTM)
P/E (Fwd)-10.5
Mkt Cap$1.3B
EV/EBITDA-1.6
Profit Mgn-141.4%
ROE-55.0%
Rev Growth-46.1%
Beta2.07
DividendNone
Rating analysts24

Quality Signals

Piotroski F3/9

Options Flow

P/C0.57bullish
IV88%elevated
Max Pain$17+92.1% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

6 floor-breakers

Revenue shrinking — -46.1% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
0.0
Declining revenue: -46%
Low model confidence on this dimension (33%).

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
0.1
Growth Rank
0.3
Value Rank
4.7

Volatile — 6.1% daily ATR makes tight stops impractical. Position-size conservatively.static

Volatility
0.0
Implied Vol
0.0
Debt Equity
0.0
Short Interest
0.2
Days To Cover
0.8
Beta
3.1
Max Pain Risk
7.0
Put Call
9.5
High short interest justified: 33%High IV: 88%

Unprofitable operations — net margin -141.4%. Quality floor flags this regardless of sector context.static

Roe
0.0
Roa
0.0
Piotroski F
3.3
Fcf Quality
3.8
Gross Margin
4.7
Moat
5.0
Current Ratio
6.4
FCF-positive but moderate margins (FCF margin 4%, FCF yield 0.9%)No competitive moatWeak Piotroski F-Score: 3/9

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Surprise Avg
0.0
Earnings History
3.3
Erm
5.0
Earnings Timing
5.0
Earnings concerns: 2B/2M

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

52w Position
0.0
Bollinger
5.1
Support Resistance
5.3
GatesMomentum 4.4<4.5A.R:R -1.1=NEGATIVEDeath cross (50MA < 200MA)Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 27d clearSEMI CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
58 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $7.90Resistance $9.94

Price Targets

$8
$10
A.Upside+10.1%
A.R:R-1.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-13.4% upside)
! Quality below floor (3.3 < 4.0)
! Momentum score 4.4/10 — below 4.5 minimum

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-05-27 (27d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is AI stock a buy right now?

Sell if holding. Engine safety override at $8.85: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.1/10. Specifically: High short interest: 33%; Below-average business quality; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 58. Prior stop was $8.24. Score 3.1/10, high confidence.

What is the AI stock price target?

Take-profit target: $9.74 (+9.9% upside). Prior stop was $8.24. Stop-loss: $8.24.

What are the risks of investing in AI?

Target reached (-13.4% upside); Quality below floor (3.3 < 4.0).

Is AI overvalued or undervalued?

C3.ai, Inc. trades at a P/E of N/A (forward -10.5). TrendMatrix value score: 4.8/10. Verdict: Sell.

What do analysts say about AI?

24 analysts cover AI with a consensus score of 2.5/5. Average price target: $9.

What does C3.ai, Inc. do?C3.ai, Inc. operates as an enterprise artificial intelligence application software company. The company offers C3...

C3.ai, Inc. operates as an enterprise artificial intelligence application software company. The company offers C3 agentic AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI CRM Suite, a customer relationship management solution; C3 Generative AI that enables to locate, retrieve, present information, disparate data stores, applications, and enterprise information systems; C3 AI Health Suite to accelerate healthcare innovation; and C3 AI Financial Services Suite. Its C3 AI Applications include C3 AI Asset Performance suite, which consists of C3 AI Reliability, C3 AI Process Optimization, and C3 AI Energy Management applications. The company's C3 AI Supply Chain Suite comprises C3 AI Supply Network Risk, C3 AI Inventory Optimization, C3 AI Demand Forecasting, C3 AI Production Schedule Optimization, and C3 AI Sourcing Optimization solutions; C3 AI Sustainability Suite includes C3 AI ESG and C3 AI Energy Management applications to decrease greenhouse gas emissions; and C3 AI Defense & Intelligence Suite. It provides C3 AI State and Local Government Suite that includes various applications, such as C3 Law Enforcement for state, county, and municipal law enforcement agencies; C3 AI Residential Property Appraisal and C3 AI Commercial Property Appraisal for county property assessors and appraisers; and C3 Generative AI for Government Programs and C3 Generative AI for Constituent Services for federal, state, and local governments. It has strategic partnerships with Microsoft Azure, AWS, Google Cloud, McKinsey & Company, Baker Hughes, Booz Allen, and others. The company has a strategic alliance with SMX Group, LLC for the development of mission critical AI in the secure environments. 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.

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