C3.ai Prepares to Report Q1 Earnings

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.