Hello everyone,
The letter from the Kerrisdale Capital made C3.AI plummet by 40% on possible allegations that C3.AI used agressive accounting tactics to boost it's quarterly results and improve margins on paper.
Even if that is true, revenue is still revenue and each and every company uses all the possible legal ways to improve it's finances. Still, this does not immediately mean that C3 should be 40% cheaper than 3 days before.
The company was way overbought and needed some cool-down, but -40% is brutal for such allegations. The $20 has been a fantastic support a few times in the past and I think that this time is no different. I am expecting heavy buying and the first TP would be $25 and then $30. After hitting $30, it all depends on the allegations being cleared as well as the overall market sentiment, so nothing can be certain past that point.
If there is a heavy break below $18, $15 is next and then $10. Still, I don't think that C3 is over just yet and this is all a show to drop the company.
Good luck to all!
The letter from the Kerrisdale Capital made C3.AI plummet by 40% on possible allegations that C3.AI used agressive accounting tactics to boost it's quarterly results and improve margins on paper.
Even if that is true, revenue is still revenue and each and every company uses all the possible legal ways to improve it's finances. Still, this does not immediately mean that C3 should be 40% cheaper than 3 days before.
The company was way overbought and needed some cool-down, but -40% is brutal for such allegations. The $20 has been a fantastic support a few times in the past and I think that this time is no different. I am expecting heavy buying and the first TP would be $25 and then $30. After hitting $30, it all depends on the allegations being cleared as well as the overall market sentiment, so nothing can be certain past that point.
If there is a heavy break below $18, $15 is next and then $10. Still, I don't think that C3 is over just yet and this is all a show to drop the company.
Good luck to all!