Second, its finances make it unclear if company can ever become successful. C3.ai reported $224 million in sales for the first nine months of fiscal 2024, up 15% from 2023. Its fiscal Q3 concluded Jan. 31.
Its $363 million operational expenses (excluding its $127 million cost of revenue) were disappointing. Therefore, its first three quarters of fiscal 2024 net loss was $207 million.
Worse, C3.ai looks unable to develop out of this issue. It expects midyear sales of $306 million to $310 million in fiscal 2024, a 15% increase. Thus, the stock has struggled. It more than doubled last year before a sharp drop. The stock has gained 10% in the past year, trailing the S&P 500.
Additionally, its price-to-sales ratio is 11. Due to its financial troubles, C3.ai's multiple may make it costly. In conclusion, AI investors have many options. C3.ai's finances suggest investors should sell it and invest in a faster-growing AI business with consistent profitability.
Don't let greed ruin your great investing returns. Super Micro Computer Justin Pope: I favor Super Micro Computer (NASDAQ: SMCI) long-term. However, Super Micro Computer has climbed too fast this year. Securities are more than 1,000% above their 52-week low, a return the market would take decades to achieve.
Selling some of your multibagger position today may be sensible. Not that Supermicro isn't appealing. Artificial intelligence investments in the tech sector are driving demand for its modular server solutions. Management expects revenue to climb over 200% year-over-year in the following quarter as the company's growth accelerates to triple-digits.
However, equities are volatile and the market is hot. Over the past year, the Nasdaq Composite index rose 38%. A pullback might deflate share values, and investors may lock in profits from huge winners. Any stock as high as Super Micro Computer? Hard to find one.
I don't recommend selling everything and fleeing. Greed can hurt investors. Take profits if you have large gains. You can always reinvest when the market cools.
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