C3Ai Stock Hits Record Low After Post-Earnings Bear Notes

BofA Global downgraded AI to "underperform" from "neutral"

Assistant Editor
Dec 2, 2021 at 1:37 PM
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Artificial Intelligence (AI) software stock C3Ai Inc (NYSE: AI) is taking a dramatic fall today, down 13% to trade at $29.42 at last check -- a new record low. After the close yesterday, the company reported narrower-than-expected fiscal second-quarter losses per share as well as higher-than-anticipated revenue, but analysts are blasting AI with bear notes. 

BofA Global Research downgraded the stock to "underperform" from "neutral," with a price-target cut to $40 rom $65, citing the "disappointing" results. No fewer than five other analysts slashed their price targets as well, including Piper Sandler to $44 from $78.

Since its initial public offering (IPO) on Dec. 8 of last year, AI hasn't experienced a very positive run, with the stock down 78.6% year-to-date. More recently, the stock is fresh off three-straight monthly losses, and broke below several short-term moving averages, as well as support at the $45 level, in mid November. It's also worth noting that AI has just landed on the Short Sale Restricted (SSR) list. 

Options traders are targeting AI at four times the intraday average, with options volume pacing for the 99th percentile of its annual range. So far, 25,000 calls and 13,000 puts have been traded. New positions are being opened at the December 30 call and December 25 put, which are both seeing a great deal of activity. 

 
 

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