Why C3.AI Stock Collapsed This Week
Shares of C3.AI (NYSE: AI) crashed as much as 39% this week, according to data from S&P Global Market Intelligence. The enterprise artificial intelligence (AI) software provider was presented with a short report from Kerrisdale Capital asking its auditor to investigate major accounting irregularities with the publicly traded company. The short-seller believes C3.AI is masking a declining business by faking revenue from large shareholder and customer Baker Hughes.
The stock is still up over 100% year to date as its ticker, AI, has encapsulated the current AI bonanza in public markets. But don't think this means you should mount up and buy the dip on one of the market's favorite AI stocks of 2023.
The Kerrisdale report presents a pretty damning case with C3.AI's financial statements. Without getting too bogged down in the details, the company alleges C3.AI is likely committing fraud for a few reasons:
Source Fool.com
