Is C3.ai Stock a Buy After Its Huge Sell-off?
You've no doubt heard the old investing adage to "buy on the dip." So when it's a big dip, should you buy an especially big amount of a given stock? Sometimes the answer is yes, but other times it's a hard no.
C3.ai (NYSE: AI) has been a spectacular winner this year, more than tripling year to date as of earlier this month. However, shares of the enterprise AI software provider collapsed last week, plunging more than 30%. Is C3.ai stock a buy after its huge sell-off?
That steep decline came after short-seller Kerrisdale Capital sent a letter to C3.ai's auditor, Deloitte & Touche. Kerrisdale accused C3.ai of "serious accounting issues." In particular, the short-seller alleged that C3.ai used "highly aggressive accounting to inflate its income statement metrics" to meet analysts' estimates and hide "significant deterioration in its underlying operations."
Source Fool.com
