C3.ai in Merger Talks with Automation Anywhere
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16h ago
0mins
Source: Fool
- Stock Movement: C3.ai's stock rose 2.1% by 9:50 a.m. ET on Wednesday, reflecting market optimism regarding rumored merger talks with Automation Anywhere, although the deal remains unconfirmed and could affect investor sentiment.
- Market Valuation: Automation Anywhere was privately valued at $6.8 billion in 2019, while C3.ai's current valuation stands at only $1.8 billion, indicating a significant valuation gap that suggests a potential buyout rather than a true merger if the deal proceeds.
- Financial Performance: C3.ai reported losses of $381 million over the past year, with analysts forecasting no improvement in its financial outlook for the foreseeable future, indicating that even a successful merger may not alleviate ongoing financial pressures.
- Cash Flow Situation: With $675 million in cash reserves and an annual cash burn of $93 million, C3.ai is projected to last seven years before running out of funds, but continued losses without a buyout could exacerbate its financial challenges.
Analyst Views on AI
Wall Street analysts forecast AI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AI is 30.45 USD with a low forecast of 18.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
4 Buy
6 Hold
3 Sell
Hold
Current: 12.600
Low
18.00
Averages
30.45
High
50.00
Current: 12.600
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.
