Google, Microsoft and Amazon love this company, which analysts predict will grow up to 111%

How is it possible that a company working with Microsoft and Google is not at the absolute centre of all investors' attention? What's more, its shares have plunged by more than 90%!? We'll explain that in this article 👇

This company has partnered with the biggest tech giants

What do Amazon $AMZN, Microsoft $MSFT and Google $GOOG have in common? Well, besides the fact that they are some of the world's biggest tech leaders?

All three are working with a small, seemingly unassuming artificial intelligencecompany - C3.ai $AI. By the way, they pretty much won with the ticker 😁

C3.ai is a leader in artificial intelligence for businesses. Without exaggeration it helped create this industry. The company develops turnkey and customizable enterprise solutions for hundreds of companies in various industries that can significantly accelerate their adoption of advanced technologies.

But why have the three giants fallen so in love with them? The answer is one word - cloud. Cloud computing (or rather, the more common term "cloud computing") is crucial for businesses that operate online in any form. And of course, these three are dependent on online to an extreme degree. And they also happen to be the world's three largest cloud service providers. Amazon Web Services, Microsoft Azure and Google Cloud. These platforms offer their customers hundreds of tools that can speed up business operations - and the ability to create artificial intelligence models is one of them.

Market share of the top three players in the cloud market. Source

Artificial intelligence is capable of handling common tasks in a fraction of the time of a human. Especially when they involve large volumes of data. So it is logical that businesses are clamoring for the integration of this technology. This is where C3.ai comes in, bringing all sorts of time-saving facilitation to the development of AI models. With C3's tool, the time savings are absolutely drastic. It is said to eliminate up to 99% of coding.

Cloud service providers are realizing the value this brings and are working with C3.ai to accelerate the adoption of AI in their customers' businesses. Both Microsoft Azure and Google Cloud are leveraging C3.ai's technology to improve their cloud services.

In total, C3.ai now has 228 customers in a variety of industries from technology to manufacturing to oil and gas. Interestingly, oil giant Shell, for example, uses C3.ai to monitor more than 13,000 devices to improve safety, reduce emissions and predict failures.

The annual chart is not pretty

Financials

All sounds positive. But what has caused the stock to fall 64% since the start of the year and even take a write-down of over 90% since ATH?

C3.ai isn't profitable yet, losing $71.9 million during the quarter. That's the main reason its stock has suffered a loss, as investors have understandably avoided loss-making companies this year. But the company has a strong balance sheet with more than $900 million in cash, equivalents and short-term investments, which means it has plenty of ammunition to invest in growth and innovation.

C3.ai's market valuation now stands at just $1.37 billion after falling 93% from its all-time high. And lo and behold! But the company has $900 million in cash! That means that investors are valuing the real business at only about $500 million.

So the company's potential is truly gigantic. The problem is that it looks a bit like Palantir $PLTR. Similar industry, similar "unbeatable" product, brilliant stock... the market just can't and won't get it. So in no way am I condemning either. I'm just a little suspicious.

C3.ai price prediction for the next 12 months. Source

Interestingly, the price really seems to be so low that even the most skeptical analysts are predicting at least some growth. But the positive ones are really generous and see the company at 111% of its current value in a year.

How do you like the company? Is there hidden potential here, or has the market rightly punished it?

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Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and a few other analyses. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.