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C3.ai, Inc. (AI): A Bear Case Theory

We came across a bearish thesis on C3.ai, Inc. (AI) on Substack by Stefan Waldhauser. In this article, we will summarize the bears’ thesis on AI. C3.ai, Inc. (AI)'s share was trading at $24.16 as of May 16th.

C3.ai continues to face deep operational and financial challenges despite an improvement in revenue growth to 24% over the trailing twelve months. The company's persistent inability to generate positive cash flow and its low Rule of 40 score of 14% point to a business model that remains fundamentally inefficient. Its net loss, hovering near 80% of revenue, highlights ongoing...