Core Viewpoint - A class action lawsuit has been filed against C3.ai, alleging that the company and its executives misled investors regarding its financial health and growth prospects, violating the Securities Exchange Act of 1934 [1][2]. Group 1: Lawsuit Details - The lawsuit, titled Liggett v. C3.ai, Inc., claims that C3.ai provided overly optimistic revenue projections while downplaying risks associated with CEO Thomas M. Siebel's health issues [2][3]. - The class period for the lawsuit is from February 26, 2025, to August 8, 2025, with a lead plaintiff deadline set for October 21, 2025 [2][4]. - Following a disappointing financial announcement on August 8, 2025, C3.ai's stock price dropped by more than 25% after the company lowered its revenue guidance for the fiscal year [3]. Group 2: Company Performance and Leadership Impact - C3.ai attributed its poor financial results to "reorganization with new leadership" and the health problems of CEO Thomas M. Siebel [3]. - The lawsuit emphasizes that C3.ai's public statements regarding growth and profitability were deemed "unrealistic" and overly reliant on Siebel's health and performance [2][5]. Group 3: Investor Actions - Investors who suffered significant losses during the class period are encouraged to submit their claims and may seek to serve as lead plaintiffs [2][4]. - The firm leading the investigation is focused on whether C3.ai's public statements adequately disclosed the impact of Siebel's health on the company's financial targets [5].

Core Insights - C3.ai, Inc. (AI) started fiscal 2026 with profitability concerns as non-GAAP gross margin decreased to 52%, down 1,800 basis points from 70% in the previous year, primarily due to higher initial production deployment costs and reduced revenues from demonstration licenses [1][9] - The shift towards initial production deployments (IPDs) indicates both growth potential and margin risks, with management expecting moderate gross margins in the near term as support capacity is built [2] - Subscription revenues remained strong, contributing $60.3 million, or 86% of total revenues, while liquidity is robust with $711.9 million in cash, although negative free cash flow of $34.3 million highlights ongoing investment intensity [3] Financial Performance - C3.ai's gross margin contraction reflects the challenges of scaling new deployments, impacting the path to achieving non-GAAP profitability and free cash flow [1][3] - The company’s reliance on upfront-cost-heavy IPDs contrasts with peers like Palantir and Snowflake, which are demonstrating profitable scaling with strong margins [7] - C3.ai's stock has declined 23.6% over the past three months, compared to a 6.1% decline in the industry [8] Peer Comparison - Palantir Technologies Inc. reported an adjusted gross margin of 82% in Q2 2025, enabling a 46% adjusted operating margin and robust free cash flow of $569 million [5] - Snowflake Inc. achieved a non-GAAP product gross margin of 76.4% in Q2 fiscal 2026, with a modest operating margin of 11% but strong gross margin fundamentals [6] - C3.ai's current stage of maturity, characterized by negative free cash flow and moderated gross margins, places it at a disadvantage compared to peers with proven operating models [7] Valuation and Estimates - C3.ai trades at a forward price-to-sales ratio of 7.86X, significantly lower than the industry average of 17.20X [11] - The Zacks Consensus Estimate for C3.ai's fiscal 2026 earnings per share (EPS) indicates a year-over-year decline of 224.4%, while fiscal 2027 EPS is expected to rise by 23.7% [12]

Core Viewpoint - C3.ai, Inc. is facing a class action lawsuit due to allegations of misleading statements regarding its growth and the impact of its CEO's health on the company's performance, leading to a significant drop in stock price following disappointing financial results [1][2]. Summary by Relevant Sections Allegations - The complaint claims that C3.ai's management provided overly positive statements while concealing material adverse facts about the company's growth, particularly the CEO's health affecting deal closures and overall performance [1]. - The company announced disappointing preliminary financial results for Q1 of fiscal 2026 and reduced its revenue guidance for the full fiscal year 2026, attributing these issues to "the reorganization with new leadership" and the CEO's health problems [1]. Stock Price Impact - Following the announcement on August 8, 2025, C3.ai's stock price fell from $22.13 per share to $16.47 per share by August 11, 2025, marking a decline of approximately 25.58% in just one day [1]. Class Action Details - Shareholders who purchased shares during the class period from February 26, 2025, to August 8, 2025, are encouraged to register for the class action, with a deadline for lead plaintiff appointment set for October 21, 2025 [2]. - Participants will be enrolled in a portfolio monitoring system to receive updates throughout the case lifecycle [2].

Core Viewpoint - A class action lawsuit has been filed against C3.ai, Inc. on behalf of investors who purchased shares during a specified period, indicating potential legal challenges for the company [1]. Summary by Relevant Sections - **Company Overview** - C3.ai, Inc. is facing a class action lawsuit initiated by Berger Montague PC, a national plaintiffs' law firm [1]. - **Class Period** - The lawsuit pertains to investors who acquired C3.ai securities from February 26, 2025, to August 8, 2025 [1]. - **Investor Deadline** - Investors interested in being appointed as lead plaintiff representatives must act by October 21, 2025 [1].

Group 1: C3.ai Overview - C3.ai has faced significant challenges, including a 19% year-over-year revenue decline to $70.3 million in Q1 fiscal 2026, marking its first revenue miss since going public [7] - The company reported a non-GAAP operating loss of $57.8 million, worsening from a $16.6 million loss in the same quarter the previous year [9] - C3.ai's non-GAAP gross margin decreased by nearly 18 percentage points year-over-year to 52%, primarily due to higher costs and weaker economies of scale [10] Group 2: Analyst Sentiment on C3.ai - Analysts have set a price target of $10 per share for C3.ai, indicating a 43% downside from its current price of $17.80 [4] - The company has withdrawn its full-year fiscal 2026 guidance, suggesting limited revenue visibility [11] - Despite a $2.4 billion market cap, some analysts view the valuation as unjustified given the company's growth issues [12] Group 3: Super Micro Computer Overview - Super Micro Computer reported a 47% year-over-year revenue increase to $22 billion in fiscal 2025, but its Q4 revenue of $5.76 billion fell short of estimates [13] - The company's non-GAAP margin was 9.6%, significantly below its long-term target of 14% to 17% [13] - Operating expenses rose 29% year-over-year to $239 million in Q4, and inventories increased to $4.7 billion [15] Group 4: Analyst Sentiment on Super Micro Computer - Analysts maintain a bearish stance on Super Micro Computer, with a target price of $15, suggesting a 67% downside from its current price of approximately $44.60 [4] - The company trades at roughly 16.9 times forward earnings, which some analysts believe is not justified given the current profitability challenges [17] - Management's expectations for new products to improve profit margins remain uncertain due to a lack of experience in forecasting their financial impact [16]

Core Viewpoint - C3.ai, Inc. is facing a class action securities lawsuit due to alleged securities fraud that negatively impacted investors between February 26, 2025, and August 8, 2025 [1][2] Group 1: Lawsuit Details - The lawsuit claims that C3.ai's management provided misleading positive statements while concealing adverse facts about the company's growth, particularly regarding the health of its CEO and its impact on deal closures [2] - On August 8, 2025, C3.ai announced disappointing preliminary financial results for Q1 of fiscal 2026 and reduced its revenue guidance for the full fiscal year 2026, attributing these issues to "the reorganization with new leadership" and the CEO's health [2] - Following the announcement, C3.ai's stock price dropped from $22.13 per share on August 8, 2025, to $16.47 per share on August 11, 2025, marking a decline of approximately 25.58% in just one day [2] Group 2: Next Steps for Investors - Investors who suffered losses in C3.ai during the relevant period have until October 21, 2025, to request to be appointed as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the United States [4]

Group 1 - The law firm Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against C3.ai, titled Liggett v. C3.ai [1]

Group 1 - A class action securities lawsuit has been filed against C3.ai, Inc. [1] - The lawsuit is being notified by Levi & Korsinsky, LLP to investors in C3.ai [1] - C3.ai is listed on the New York Stock Exchange under the ticker symbol AI [1]

Core Viewpoint - C3.ai, Inc. is facing a class action lawsuit due to allegations of misleading statements regarding its growth and the impact of its CEO's health on the company's performance [3][4]. Company Summary - The class period for the lawsuit is from February 26, 2025, to August 8, 2025 [3]. - Allegations include that C3 AI's management provided overly positive statements while concealing material adverse facts about the company's growth potential and the CEO's health issues [3]. - On August 8, 2025, C3 AI announced disappointing preliminary financial results for Q1 of fiscal 2026 and reduced its revenue guidance for the full fiscal year 2026, attributing this to "the reorganization with new leadership" and the CEO's health [3]. - Following this announcement, C3 AI's stock price dropped from $22.13 per share to $16.47 per share, a decline of approximately 25.58% in just one day [3]. Next Steps for Shareholders - Shareholders who purchased shares during the specified class period are encouraged to register for the class action by October 21, 2025 [4]. - Registration allows shareholders to receive updates on the case and does not involve any cost or obligation [4]. Legal Firm Information - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and fraud [5].

Core Insights - The article compares C3.ai and Microsoft Corporation in the context of the AI market, highlighting the strengths and weaknesses of each company in terms of growth potential, stability, and scalability [1][2]. Group 1: C3.ai Overview - C3.ai has established a unique position in the enterprise AI market with its Agentic AI platform and over 130 applications tailored for various industries, demonstrating real operational value through major customers like Nucor and the U.S. Army [3]. - Approximately 90% of recent deals for C3.ai are partner-led, primarily through major platforms like Microsoft Azure, AWS, and Google Cloud, allowing access to large distribution channels without extensive direct sales efforts [4]. - The Strategic Integrator Program enables partners to build solutions on C3.ai's platform, potentially expanding adoption at lower costs [5]. - C3.ai holds over $700 million in cash and equivalents, providing a financial cushion to address sales execution issues and invest in growth [6]. Group 2: C3.ai Challenges - C3.ai's revenues fell nearly 19% year over year in the latest quarter, marking its first miss since going public, attributed to weak sales execution and organizational disruption [7]. - The gross margin decreased to 52% due to more costly initial production deployments, with a non-GAAP operating loss of nearly $58 million and over $30 million in free cash flow burned [8]. - A significant portion of C3.ai's production deployments has not transitioned into recurring revenue streams, raising concerns about deal conversion and reliance on partner-led sales [9]. Group 3: Microsoft Overview - Microsoft has shown strong momentum in cloud and AI, with Azure generating over $75 billion in annual revenues, a 34% increase year over year, supported by extensive infrastructure investments [10]. - Microsoft reported $281 billion in revenues and $128 billion in operating income, both rising at double-digit rates, with cloud revenues reaching $168 billion, up 23% [16]. - The Copilot suite has gained rapid adoption, with Microsoft 365 Copilot reaching over 100 million monthly active users, indicating strong customer engagement [13]. - Microsoft Fabric, its analytics platform, grew 55% year over year, positioning the company as a critical provider of data infrastructure for AI applications [14]. Group 4: Microsoft Competitive Advantage - Microsoft's partnerships with OpenAI and Atom Computing enhance its technological position within the AI ecosystem [15]. - The company has a free cash flow of $25.6 billion in a single quarter, allowing for reinvestment in infrastructure and innovation while returning capital to shareholders [17]. - Microsoft has gained 16.3% in stock value over the past year, contrasting with C3.ai's decline of 27.1%, reflecting diverging investor confidence [11][18]. Group 5: Valuation and Projections - C3.ai is trading at a forward price-to-sales ratio of 7.39X, below its three-year median of 8.32X, while Microsoft's ratio is at 11.44X, above its three-year median of 10.72X [20]. - The Zacks Consensus Estimate for C3.ai's fiscal 2026 loss per share has widened to $1.33, while Microsoft's earnings per share estimates have increased for the same period [23][25]. Group 6: Investment Outlook - Microsoft presents a stronger investment case with a comprehensive AI ecosystem, consistent profitability, and strong customer adoption, making it a more reliable choice for investors [27]. - C3.ai, while having promising technology, faces execution hurdles and widening losses, suggesting a cautious approach for investors until stability is demonstrated [27].