Should You Buy C3.ai Stock Before May 28?

Company Overview - C3.ai was founded in 2009 and is a leader in artificial intelligence, offering over 130 applications to help businesses adopt AI technology [1][5] - The company serves 19 different industries, including oil and gas, transportation, telecommunications, healthcare, and manufacturing [5] Financial Performance - C3.ai generated $98.7 million in total revenue during the fiscal 2025 third quarter, marking a 26% increase year-over-year [9] - Management forecasts $113.6 million in revenue for the fiscal 2025 fourth quarter, representing a 31% year-over-year growth [12] - The company has experienced a shift from a subscription revenue model to a consumption-based pricing model, which has led to faster customer onboarding and revenue growth [10][11] Market Potential - The addressable market for enterprise AI could exceed $1.3 trillion by 2032, presenting significant growth opportunities for C3.ai and its competitors [2][13] - C3.ai's current price-to-sales ratio (P/S) is 8.3, which is a 14% discount to its three-year average of 9.6, indicating an attractive valuation [14][15] Customer Applications - Shell, a major client, has over 100 AI applications in production, utilizing C3.ai's technology to improve efficiency and reduce carbon emissions [6] - C3.ai's applications can be accessed through major cloud platforms like AWS, Microsoft Azure, and Google Cloud, allowing businesses to scale without maintaining their own infrastructure [7][8] Financial Health - The company reported a net loss of $209 million based on GAAP through the first three quarters of fiscal 2025, but only $30.4 million on a non-GAAP basis [17] - C3.ai has approximately $724 million in cash and marketable securities, providing a buffer for continued investment in growth [19]