Down More Than 50% Since its IPO, Is AI Stock Worth Your Investment?

The future of technology is advancing faster than many of us realize. Companies have begun to create technology that was only thought possible in science-fiction. One company in particular, which recently went public, has given investors the chance to invest in…

Artificial Intelligence. But is now the time?

C3.ai (AI) is an artificial intelligence software company that provides software-as-a-service (SaaS) applications. The company has two families of software solutions: C3 AI Suite and C3 AI applications.

Its C3 AI Suite is an end-to-end platform-as-a-service allowing customers to design, develop, provide, and operate enterprise AI applications. Its C3 AI applications are a portfolio of turnkey cross-industry and industry-specific enterprise AI applications. This portfolio serves the needs of a list of vertical market segments including oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications.

The global artificial intelligence market is expected to expand rapidly, according to Facts and Factors market research report, at a compound annual growth rate (CAGR) of 35.6% from 2021 to 2026, reaching a total value of $299.6b.

In spite of that, AI has disappointed its shareholders since its listing in December 2020. The company’s share price has dipped more than 50% in this period, underperforming the NASDAQ 100, which delivered a year-to-date return of 16.68%.

Today, I will dive into AI’s financials and recent announcements to see if it is a worth investment.

AI’s top-line is surging, but the company is not profitable, as it burns too much cash

Since the beginning of the year, AI dipped significantly, losing more than 60% of its market capitalization and underperforming its benchmark the ARK Autonomous Technology & Robotics ETF (ARKQ) that gained 13% year-to-date.

AI’s top line growth has grown over the past years at a rapid pace and is expected to accelerate in the coming years. The artificial intelligence company’s net sales are expected to increase 16.6% in 2021 to $183m and AI’s top-line growth rate should accelerate to 34.4% in 2022 to $246m.

In spite of this rapid advance, the company is not yet…

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