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: 8.960
Low
18.00
Averages
30.45
High
50.00
Current: 8.960
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.
C3.ai Sales Plummet 46%, Layoffs Announced
- Disappointing Sales Performance: C3.ai reported a staggering 46% decline in sales for the latest quarter, dropping to $53.3 million, indicating a significant lack of competitiveness in the AI market and leading to a sharp decline in investor confidence.
- Layoff Implementation: The company announced a 26% workforce reduction to improve its cost structure, reflecting the urgency of addressing ongoing losses and signaling management's concerns about future profitability.
- Founder Departure Impact: Founder Thomas Siebel stepped down due to health issues, and while new CEO Stephen Ehikian remains optimistic about the company's prospects, the lack of substantial performance backing increases market uncertainty.
- Stock Price Decline: C3.ai's shares have fallen 33% this year, with a market cap of $1.3 billion; despite the high enthusiasm for AI, the company has failed to translate this into financial growth, prompting investors to approach the stock with caution.
See More
Key Market Updates for Investors
- CPI Data Release: February's Consumer Price Index (CPI) data will be released on Wednesday morning, providing investors with the latest insights into the economic trends that could influence market sentiment and investment decisions.
- Earnings Season Begins: Companies like Campbell's (CPB) and Petco (WOOF) are set to report quarterly earnings, and investors will closely monitor these results to assess company performance and potential market impacts.
- Fed Vice Chair Speech: Federal Reserve Vice Chair Michelle Bowman will deliver remarks, and market participants will pay attention to her views on monetary policy to gauge future interest rate directions and their economic implications.
- Market Analysis Show: Investors can tune into the Market Domination Overtime program for more expert insights and analysis on the latest market actions, aiding them in making more informed investment decisions.
See More
C3.ai Under Investigation for Securities Fraud
- Poor Financial Performance: C3.ai's financial results for Q3 FY2026 significantly missed consensus estimates, undermining investor confidence and potentially leading to legal actions against the company.
- Restructuring Plan Announced: The company revealed a 26% reduction in its global workforce, estimating pre-tax restructuring charges of $10 million to $12 million in Q4 FY2026, which will further strain its financial health.
- Stock Price Plummets: Following the restructuring and disappointing financial news, C3.ai's stock price fell by $1.91, or 18.53%, closing at $8.40 per share on February 26, 2026, indicating market concerns about the company's future.
- Legal Investigation Launched: Pomerantz LLP is investigating whether C3.ai and its executives engaged in securities fraud or other unlawful business practices, which could expose the company to additional legal risks and financial liabilities.
See More
C3.ai and SoundHound AI Market Dynamics
- Massive Market Potential: The global market for decision-making AI agents is projected to grow from $8 billion in 2026 to $215 billion by 2035, representing a more than 25-fold increase, highlighting significant investment opportunities in this sector.
- C3.ai Sales Slowdown: Despite launching a new agentic AI product, C3.ai's fiscal 2026 revenue guidance of $246.7 million to $250.7 million is significantly lower than the approximately $389 million reported in fiscal 2025, indicating challenges as the company undergoes restructuring.
- SoundHound AI Rapid Growth: SoundHound AI experienced a 99% revenue increase in 2025, reaching approximately $169 million, with forecasts suggesting 2026 revenues could range from $225 million to $260 million, demonstrating strong demand and expansion capabilities in the AI market.
- Increased Corporate Partnerships: SoundHound AI secured a record number of enterprise deals in Q4, including partnerships with a global smart TV manufacturer and a Japanese insurance company, reflecting broad recognition and demand for its technology across various applications.
See More
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- Agentic AI Product Launch: C3.ai has introduced its agentic AI product designed to enhance workflow efficiency by setting objectives, constraints, and instructions; however, the immediate business impact appears limited despite high market expectations.
- Revenue Outlook Decline: The company forecasts fiscal 2026 revenue between $246.7 million and $250.7 million, significantly lower than the approximately $389 million in fiscal 2025, prompting a restructuring plan that underscores the challenges ahead.
- Market Potential: Although C3.ai is currently unprofitable, market research predicts that the agentic AI market will expand from $8 billion in 2026 to $215 billion by 2035, indicating substantial future growth opportunities.
- Strong Competitor Performance: In contrast to C3.ai, SoundHound AI has closed a record number of enterprise deals in Q4, with projected revenue for 2026 expected to reach between $225 million and $260 million, reflecting robust demand and growth potential in the AI sector.
See More
C3.ai Stock Plummets Amid Layoffs and Poor Earnings
- Dismal Financial Performance: C3.ai's latest earnings report reveals a staggering 46% year-over-year decline in sales to $53.3 million, indicating that the anticipated growth in AI has not materialized, severely undermining investor confidence.
- Leadership Change Impact: New CEO Stephen Ehikian, who took over in September, remains optimistic about the company's prospects; however, his inability to reverse the declining performance has further exacerbated market uncertainty.
- Layoff Implementation: The company announced a 26% workforce reduction to address its high cost structure, reflecting urgent measures taken under financial pressure and highlighting the challenges in its operations.
- Stock Price Continues to Fall: C3.ai's stock has dropped 33% this year, with a market cap of $1.3 billion, suggesting that while the market remains cautious, the investment risk remains high until there is a significant improvement in financials.
See More
C3.ai Sales Plummet 46%, Layoffs Announced
- Disappointing Sales Performance: C3.ai reported a staggering 46% decline in sales for the latest quarter, dropping to $53.3 million, indicating a significant lack of competitiveness in the AI market and leading to a sharp decline in investor confidence.
- Layoff Implementation: The company announced a 26% workforce reduction to improve its cost structure, reflecting the urgency of addressing ongoing losses and signaling management's concerns about future profitability.
- Founder Departure Impact: Founder Thomas Siebel stepped down due to health issues, and while new CEO Stephen Ehikian remains optimistic about the company's prospects, the lack of substantial performance backing increases market uncertainty.
- Stock Price Decline: C3.ai's shares have fallen 33% this year, with a market cap of $1.3 billion; despite the high enthusiasm for AI, the company has failed to translate this into financial growth, prompting investors to approach the stock with caution.
See More
Key Market Updates for Investors
- CPI Data Release: February's Consumer Price Index (CPI) data will be released on Wednesday morning, providing investors with the latest insights into the economic trends that could influence market sentiment and investment decisions.
- Earnings Season Begins: Companies like Campbell's (CPB) and Petco (WOOF) are set to report quarterly earnings, and investors will closely monitor these results to assess company performance and potential market impacts.
- Fed Vice Chair Speech: Federal Reserve Vice Chair Michelle Bowman will deliver remarks, and market participants will pay attention to her views on monetary policy to gauge future interest rate directions and their economic implications.
- Market Analysis Show: Investors can tune into the Market Domination Overtime program for more expert insights and analysis on the latest market actions, aiding them in making more informed investment decisions.
See More
C3.ai Under Investigation for Securities Fraud
- Poor Financial Performance: C3.ai's financial results for Q3 FY2026 significantly missed consensus estimates, undermining investor confidence and potentially leading to legal actions against the company.
- Restructuring Plan Announced: The company revealed a 26% reduction in its global workforce, estimating pre-tax restructuring charges of $10 million to $12 million in Q4 FY2026, which will further strain its financial health.
- Stock Price Plummets: Following the restructuring and disappointing financial news, C3.ai's stock price fell by $1.91, or 18.53%, closing at $8.40 per share on February 26, 2026, indicating market concerns about the company's future.
- Legal Investigation Launched: Pomerantz LLP is investigating whether C3.ai and its executives engaged in securities fraud or other unlawful business practices, which could expose the company to additional legal risks and financial liabilities.
See More
C3.ai and SoundHound AI Market Dynamics
- Massive Market Potential: The global market for decision-making AI agents is projected to grow from $8 billion in 2026 to $215 billion by 2035, representing a more than 25-fold increase, highlighting significant investment opportunities in this sector.
- C3.ai Sales Slowdown: Despite launching a new agentic AI product, C3.ai's fiscal 2026 revenue guidance of $246.7 million to $250.7 million is significantly lower than the approximately $389 million reported in fiscal 2025, indicating challenges as the company undergoes restructuring.
- SoundHound AI Rapid Growth: SoundHound AI experienced a 99% revenue increase in 2025, reaching approximately $169 million, with forecasts suggesting 2026 revenues could range from $225 million to $260 million, demonstrating strong demand and expansion capabilities in the AI market.
- Increased Corporate Partnerships: SoundHound AI secured a record number of enterprise deals in Q4, including partnerships with a global smart TV manufacturer and a Japanese insurance company, reflecting broad recognition and demand for its technology across various applications.
See More
C3.ai Launches Agentic AI Product Amidst Challenging Outlook
- Agentic AI Product Launch: C3.ai has introduced its agentic AI product designed to enhance workflow efficiency by setting objectives, constraints, and instructions; however, the immediate business impact appears limited despite high market expectations.
- Revenue Outlook Decline: The company forecasts fiscal 2026 revenue between $246.7 million and $250.7 million, significantly lower than the approximately $389 million in fiscal 2025, prompting a restructuring plan that underscores the challenges ahead.
- Market Potential: Although C3.ai is currently unprofitable, market research predicts that the agentic AI market will expand from $8 billion in 2026 to $215 billion by 2035, indicating substantial future growth opportunities.
- Strong Competitor Performance: In contrast to C3.ai, SoundHound AI has closed a record number of enterprise deals in Q4, with projected revenue for 2026 expected to reach between $225 million and $260 million, reflecting robust demand and growth potential in the AI sector.
See More
C3.ai Stock Plummets Amid Layoffs and Poor Earnings
- Dismal Financial Performance: C3.ai's latest earnings report reveals a staggering 46% year-over-year decline in sales to $53.3 million, indicating that the anticipated growth in AI has not materialized, severely undermining investor confidence.
- Leadership Change Impact: New CEO Stephen Ehikian, who took over in September, remains optimistic about the company's prospects; however, his inability to reverse the declining performance has further exacerbated market uncertainty.
- Layoff Implementation: The company announced a 26% workforce reduction to address its high cost structure, reflecting urgent measures taken under financial pressure and highlighting the challenges in its operations.
- Stock Price Continues to Fall: C3.ai's stock has dropped 33% this year, with a market cap of $1.3 billion, suggesting that while the market remains cautious, the investment risk remains high until there is a significant improvement in financials.
See More
