C3.Ai Inc. AI After surging 33.42% on Tuesday, it plunged Wednesday. The company plans to report fourth-quarter results after the market closes.
Analysts expect the company to post revenue of $71.32 million and EPS of -17 cents for the quarter ending March 31.
On May 16, Piper Sandler analyst Arvind Ramnani reiterated his neutral rating on C3.Ai, maintaining a price target of $23, above C3.Ai’s trading day price. .
The company released its third-quarter earnings report on March 2, and the stock soared 33.65% the next day, but by March 15, the stock had retreated back towards the $20s, with all gains reversed.
For the quarter, C3.Ai reported an earnings loss of 6 cents per share, beating street expectations of a loss of 22 cents. The company also hit a record high in revenue at $66.7 million, versus consensus expectations of $64.25 million.
From a technical standpoint, C3.Ai looks complicated heading into the event, trading in an inside bar pattern, but with a gap below. Of course, holding a stock position beyond profit can be akin to gambling. Because stocks can rise after profits are missed and stocks can fall after profits are reported.
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C3.Ai Chart: C3.Ai turned upwards on May 3rd and has risen about 136% since that date. The stock’s most recent high was formed at $43.95 on Tuesday and its most recent low was recorded at $26.27 on May 24th.
- On Wednesday, C3.Ai was working to print an inside bar pattern, and all of the price movements for the day occurred within Tuesday’s trading range. The pattern is trending bullish as the stock was trading high beforehand.
- There is a gap below that between $33.50 and $35.20. Gaps on the chart are filled about 90% of the time, suggesting that C3.Ai will likely retrace to fill the vacated range in the future. A reversal from the bottom of the gap is likely if the stock falls after earnings.
- If C3.Ai responds positively to its earnings call, bullish traders will see the stock surge past Tuesday’s highs, hopefully during normal trading hours, with no further gaps forming. I hope
- C3.Ai finds resistance at $43 and $48.29 on the highs and support at $36.52 and $32 on the lows.
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