(C) Reuters. Is C3.ai a Good Tech Stock to Add to Your Portfolio?
C3.ai (AI) attracted significant investor attention during its IPO last December in-part because the company was founded by renowned tech entrepreneur Tom Siebel. However, the tech industry’s slump, coupled with the company’s poor financials, caused the stock to lose momentum this year. So, will AI be able to recover? Read more to find out.C3.ai, Inc. (AI) is the brainchild of billionaire tech tycoon Tom Siebel, who is known for his previous business venture Siebel Systems. Following the acquisition of Siebel Systems by Oracle Corporation (NYSE:ORCL) in 2006, Tom Siebel founded AI as an artificial intelligence software-as-a-service (SaaS) company in 2009. AI went public on December 9 last year, raising $651 million by floating 15.50 million shares priced at $42. Shares of AI soared 173.8% on the first day of trading, making it one of the most successful tech IPOs in 2020.
The stock hit its all-time high of $179 on December 22.
However, AI has been losing momentum since. It has declined 39% since its IPO and 59.2% year-to-date. This price retreat can be attributed primarily to investors’ rotation to stocks that are well positioned to benefit from the fast-paced economic recovery.
Is C3.ai a Good Tech Stock to Add to Your Portfolio?
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