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C3.ai shares climb after launch of 'Ex Machina' predictive analytics application

Will Daniel   

C3.ai shares climb after launch of 'Ex Machina' predictive analytics application
Stock Market2 min read
  • C3.ai announced the launch of a no-code predictive analytics application on Wednesday.
  • Shares climbed as much as 11% on the news, pushing the company's market cap over $15 billion.
  • The AI company's shares have now jumped over 370% since its December IPO mid-range price.

C3.ai shares climbed as much as 11% on Wednesday, continuing the company's historic post-IPO run.

The jump came after the company announced the launch of 'Ex Machina,' a no-code predictive analytics application.

C3.ai's 'Ex Machina' is the only end-to-end, predictive analytics application that enables companies to build and manage AI models without writing code.

The platform enables users to "rapidly and flexibly access petabytes of data with prebuilt connectors" and "seamlessly publish predictive insights to enterprise systems."

It's an effective way for customers to "scale cloud resources to meet needs in a modern, cloud-native application," C3.ai said in a press release.

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"C3 Ex Machina offers a tried, tested, and proven path to rapid enterprise AI application development and deployment. It empowers anyone with subject matter expertise to significantly improve their organization's ability to make timely and contextual data-driven decisions," Ed Abbo, President and CTO of C3.ai, said in the release.

According to the firm, companies like the utility Con Edison are already using the AI product and have seen strong results. Data analysts at Con Edison use 'Ex Machina' to identify malfunctioning meters in near-real-time.

Chris Brownlee, Department Manager at Con Edison, wrote in the press release, "C3 AI Ex Machina has dramatically simplified and accelerated our ability to build and deploy machine learning models to address use cases that proactively identify risks and provide safer, more reliable service to our customers."

The announcement comes as shares of C3.ai have gone on quite the run since its IPO last December, rising more than 370% from the mid-range IPO price of $32.50.

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C3.ai currently boasts four "buy" ratings, two "sell" ratings, and one "neutral" ratings from analysts who hold a median price target of $150 per share for the company.

And while most analysts are bullish on C3.ai's prospects, some are wary after such a monumental rise in the share price.

JPMorgan analysts said they "see a negative risk-reward at these levels," back on January 4th when the stock traded at just $120 per share. That could be because of C3.ai's outsized valuation. The company trades at an incredible 63x sales.

Still, with a client list that includes big names like 3m, Shell, and Raytheon, C3.ai is well-positioned going forward. Piper Sandler analysts said the company had "impressive financial metrics and the ability to sustain growth above 30%."

C3.ai traded at $156.06 as of 2:49 PM EST, giving the company a $14.96 billion market cap.

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