Everyone Is Talking About This Stock. Is It a Good Long-Term Option?
From Pets.com to Gamestop, there's never been a shortage of pop-and-drop stocks to teach traders a harsh lesson about the perils of investing in late-stage trends. Yet, hope springs eternal, and there's apparently a never-ending supply of new traders who haven't studied history or just can't stop themselves from buying the latest shiny object.
This isn't to suggest that C3.ai (NYSE: AI) in 2023 will suffer the same fate as Pets.com in 2000, but dismissing the parallels between the generative AI hype and the dot-com bubble would be a huge mistake. As a dyed-in-the-wool contrarian, I often have to suppress my instinct to lean bearish on whatever the crowd is talking about -- yet, in the case of C3.ai stock, the sense of dot-com déjà vu is impossible to ignore.
I can't prove this, but I suspect that many retail traders simply bought C3.ai stock this year because the company's stock ticker symbol is AI. Presumably, they didn't dig deep enough to uncover the open secret that the company was named C3 IoT when the Internet of Things was supposed to be the market's next rainmaker and didn't rebrand as C3.ai until June of 2019.
Source Fool.com
