World's Smartest Banker Says "Could Be Hell To Pay" If Wall Street's Craze Goes Wrong
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 30 2024
0mins
Should l Buy AI?
Source: Benzinga
Hell To Pay:
- iShares 20+ Year Treasury Bond ETF TLT chart analysis indicates rising long-term yields, which is negative for the stock market.
- Recent GDP data slightly softer, delaying rate hike prospects.
- Private credit growth raises concerns due to potential risks in case of a recession.
- Earnings reports from companies like Salesforce and Best Buy impacting the market.
- PCE data release expected tomorrow, influencing inflation outlook.
South Africa:
- Early election results suggest ANC may lose majority, impacting the South African stock market and currency.
- Potential decline in the market could present a buying opportunity.
Magnificent Seven Money Flows:
- Positive money flows in NVIDIA Corp and Apple Inc.
- Negative money flows in Amazon, Microsoft, Alphabet, Meta Platforms, and Tesla.
- Negative money flows in SPDR S&P 500 ETF Trust and Invesco QQQ Trust Series 1.
Momo Crowd And Smart Money In Stocks:
- Momo crowd buying stocks, while smart money remains inactive.
- Smart money typically sells into momo crowd strength and buys during weakness.
Gold, Oil, Bitcoin, and Investment Strategy:
- Gold selling by momo crowd, oil also being sold.
- Bitcoin seeing buying activity.
- Importance of setting protection bands for investments based on risk preferences.
- Considerations for adjusting hedge levels and cash allocation.
- Recommendations regarding traditional 60/40 portfolio allocations.
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Analyst Views on AI
Wall Street analysts forecast AI stock price to rise
13 Analyst Rating
4 Buy
6 Hold
3 Sell
Hold
Current: 10.380
Low
18.00
Averages
30.45
High
50.00
Current: 10.380
Low
18.00
Averages
30.45
High
50.00
About AI
C3.ai, Inc. is an enterprise artificial intelligence (AI) application software company. The Company has built a solution that enables its customers to rapidly develop, deploy, and operate enterprise AI applications. It offers families of software solutions, which it collectively refers to as its C3 AI software: The C3 AI Platform, C3 AI Applications, and C3 Generative AI. The C3 AI Platform, its core technology, is a comprehensive, end-to-end application development and runtime environment that is designed to allow its customers to rapidly design, develop, and deploy Enterprise AI applications of any type. Its C3 AI Applications, built using the C3 AI Platform, is a portfolio of pre-built, extensible, industry-specific, and application-specific software-as-a-service offerings (SaaS) Enterprise AI applications that can be rapidly installed and deployed. Its C3 Generative AI combines the utility of large language models, generative AI, reinforcement learning, natural language processing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Apple Court Victory: Apple secured a courtroom win as a jury rejected claims from Optis Wireless that it infringed on 4G wireless patents, a result that will help protect Apple's intellectual property and strengthen its market position.
- AI Industry Developments: Elon Musk criticized AI startup Anthropic for alleged bias while announcing a $30 billion funding round that pushed its valuation to $380 billion, highlighting the intense competition and rapid evolution within the AI sector.
See More
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- Federal Support Potential: C3 AI demonstrates significant growth potential tied to federal momentum, yet investors require proof of the company's discipline and execution before stock prices can rebound meaningfully.
- Market Price Analysis: As of February 6, 2026, C3 AI's market prices exhibit volatility, reflecting a cautious market sentiment regarding its future performance, indicating that investor confidence in its long-term value needs strengthening.
- Partnership Development: C3 AI has established strategic relationships with several major partners, which are expected to enhance its technology application and market penetration; however, the success hinges on the company's ability to execute these partnerships effectively.
- Investor Confidence Rebuilding: In the current market environment, C3 AI must demonstrate stronger execution and financial discipline to rebuild investor confidence, thereby driving sustained increases in its stock price.
See More
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- Strategic Collaboration: C3.ai has announced a strategic partnership with Vonage, a subsidiary of Ericsson, to launch the C3 AI Field Services module aimed at enhancing field operations through advanced AI capabilities, even as broader market performance remains weak, drawing investor interest to C3.ai's stock.
- Efficiency Enhancement Goals: The new module integrates C3.ai's AI technology with Vonage's communication APIs to address challenges faced by field service workers, such as equipment complexity and fragmented information, by providing real-time insights and guidance to improve operational efficiency and enhance safety compliance.
- Market Positioning Strengthened: This collaboration highlights C3.ai's leadership in the rapidly growing field services market, aiming to drive digital transformation by combining AI with communication technology, thereby enhancing the company's competitive edge in the industry.
- Technical Analysis Warning: C3.ai's stock is currently in a pronounced downtrend, trading significantly below all key moving averages, with an RSI of 42.64 indicating dominant selling pressure; if it breaks below the $9.99 52-week low, further downside may be expected.
See More
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- Strategic Collaboration: Vonage and C3 AI have launched the C3 AI Field Services module, integrating Vonage's communication APIs with C3 AI's enterprise AI capabilities to enhance performance and reliability in mobile enterprise field operations, thereby optimizing workforce efficiency.
- Technological Innovation: The new module utilizes multiple AI agents and machine learning models to quickly handle complex tasks and generate natural language summaries, enabling technicians to resolve issues more efficiently under real-time guidance, significantly improving first-time fix rates and safety compliance.
- Network API Empowerment: Vonage's advanced APIs ensure high performance and secure connectivity for the field services module, allowing technicians to securely log in via the Vonage Verify API and utilize voice and video APIs for real-time remote assistance, enhancing work efficiency and reducing equipment downtime.
- Future Work Vision: C3 AI's CTO Nikhil Krishnan stated that the future of mission-critical operations will be defined by intelligence embedded at the point of execution; this collaboration not only accelerates field technicians' response times but also provides scalable, consistent service for enterprises, driving innovation in the industry.
See More
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- Market Environment Challenges: C3.ai's share price was $13.13 on January 28, facing macroeconomic pressures and investor skepticism about the sustainability of the AI sector, which heightens its vulnerability as a 'meme stock' and could lead to significant downside.
- Leadership Instability: The transition of founder Tom Siebel to chairman has created a management vacuum, prompting departures of key executives and sales staff, which weakens operational control and increases the risk of financial irregularities.
- Potential Financial Restatement: C3.ai may form a special committee to investigate mismanagement, and if financials are restated, it could trigger a 20-50% decline in stock price, alongside potential layoffs and cuts to non-critical AI applications.
- Upcoming Earnings Pressure: The upcoming Q2 fiscal announcement is expected to disappoint, potentially reducing or suspending guidance, which could exacerbate negative sentiment around C3.ai and further impact its stock performance.
See More
Software Sector Faces Worst Drawdown in a Decade
- Severe Market Drawdown: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) has fallen for seven consecutive sessions, resulting in a 16% drop, marking the worst performance since the COVID panic in 2020, indicating immense pressure on the software sector.
- Widespread Negative Returns: Year to date, 100 out of 110 constituents in the software sector have posted negative returns, with over 20 stocks down more than 30%, reflecting growing concerns about the sustainability of software business models.
- Deteriorating Technical Indicators: A striking 97 of the IGV ETF's constituents are trading below their 200-day moving average, highlighting a broad breakdown in technical momentum, while the 14-day RSI has plummeted to 16, the lowest since September 2001, indicating extreme market pessimism.
- Pressure from Business Model Shifts: Macro strategists have noted that the rise of AI tools is replacing expensive SaaS platforms, leading to pricing pressures, slower renewals, and declining customer retention, prompting investors to rethink growth and value in the AI era.
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