Here's Why This Hot Artificial Intelligence IPO Stock Isn't Worth Buying
C3.ai (NYSE: AI) was one of the hottest tech IPOs of 2020. The enterprise artificial intelligence company priced its IPO at $42 a share on Dec. 8, but the stock opened at $100 the following day and subsequently surged to about $140.
C3.ai raised $651 million in its IPO, and it now has a market cap of about $13.4 billion, or 85 times its fiscal 2020 revenue. That frothy valuation indicates investors are still thrilled about C3.ai's growth prospects -- but the bulls are ignoring some obvious weaknesses, and pricing too much growth into this high-flying stock.
C3.ai's founder and CEO is Thomas Siebel, who previously co-founded Siebel Systems, the enterprise software company Oracle (NYSE: ORCL) acquired for $5.85 billion in 2006.
Source Fool.com
