Artificial intelligence (AI) hotshot C3.ai (NYSE:AI) will announce fiscal second-quarter earnings after the close on Wednesday, Dec. 6. The security is up 170% so far in 2023, but has recently run into resistance at the $32 region. The 20-day moving average has served as a floor for shares since early November, however, containing several of their pullbacks. At last check, AI is down 2.2% at $30.22.
The stock has a tumultuous history of post-earnings reactions. C3.ai stock finished five of its past eight next-day sessions lower, including 12.2% and 13.2% drops after its last two reports, but also saw a 33.6% pop in March. The shares averaged a move of 13.2% in the past two years, regardless of direction, but the options pits are pricing in a much larger-than-usual swing of 20.1% this time.
A positive post-earnings reaction this week could trigger a short squeeze. Short interest is already down 7.5% in the last two reporting periods, and the 35.11 million shares sold short make up a whopping 34.9% of the stock's available float. It would take shorts one week to buy back their bets, at AI's average pace of daily trading.
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
See The Five Stocks Here
Wondering where to start (or end) with AI stocks? These 10 simple stocks can help investors build long-term wealth as artificial intelligence continues to grow into the future.
Get This Free Report
