C3.ai Tumbles On Kerrisdale Capital's Letter To Auditor
C3.ai falls after Kerrisdale Capital, which holds a short position in the company's stock, sends a letter to the software maker's auditor.
i (AI), the stock of the software maker, fell on Tuesday, after Kerrisdale Capital announced that it had sent a letter regarding "serious disclosure and accounting issues" to Deloitte & Touche. Kerrisdale Capital revealed a short position last week in AI stock.
The AI stock fell 10% in morning trading on the stock exchange today, to 30.48.
Shares of C3.ai had risen by more than 200% between 2023 and 2024, amid the buzz about OpenAI, ChatGPT, and generative AI technologies. C3.ai stock is just one of the many AI stocks that you should be watching.
Kerrisdale Capital stated in a blog: "C3’s fiscal year concludes on April 30. We have asked Deloitte review our letter as it prepares to conduct the company's audit at year's end."
The letter continued: "In this letter, we discuss unbilled receivables at levels that we have never seen before in software companies." The financial disclosures were opaque, confusing, and extremely concerning, especially in relation to Baker Hughes (BKR), the company's large and related customer.
AI Stock to IPO in Late 2020
Investor's Business Daily asked C3.ai to respond to the Kerrisdale Capital Letter. C3.ai did not respond.
Initial public offering of the software company in early December 2020 raised 651 million dollars.
C3.ai also helps companies develop artificial intelligence applications. C3.ai targets energy, financial services, and defense markets.
IBD Stock Checkup
AI's stock dropped below the buy zone with Tuesday's losses. It has an entry point of 31,02.