Artificial intelligence (AI) name C3.ai Inc (NYSE:AI) will announce fiscal first-quarter earnings after the close tomorrow, Sept. 4. C3.ai stock sports an 18.4% year-to-date deficit despite the excitement surrounding AI advancements. Further back, the equity lost 25% over the last 12 months, and is now trading well below its Feb. 29 annual high of $38.30. At last check, AI is 0.1% higher at $23.37.
The stock has a mixed history of post-earnings closes, though it gained 24.5% and 19.4% in February and May, respectively. The shares averaged a move of 17.6% in the past two years, regardless of direction, but the options pits are pricing in a slightly higher swing of 21.4% this time around.
Options traders are bullish ahead of the event. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 3.43 stands higher than 95% of readings in its annual range. This indicates long calls have been getting picked up at a faster-than-usual clip in the past 10 weeks.
It's also worth noting that short interest is down 6.6% in the last two reporting periods, yet the 25.37 million shares sold short make up a 22.8% of the stock's available float. It would take shorts more than a 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
Like this article? Share it with a colleague.
Link copied to clipboard.