Stock-Split Watch: Is C3.ai Next?
Key Takeaways
The company's software helps developers build AI applications and reduce the time needed to write code.
Article Overview
Quick insights and key information
5 min read
Estimated completion
investment
Article classification
July 24, 2025
06:30 AM
The Motley Fool
Original publisher
From an analytical perspective, The company's software helps developers build AI applications and reduce the time needed to write code
Stock splits are tools that companies can use to artificially manipulate their stock prices or count
On the other hand, While they aren't always easy to predict, they are typically done for a specific reason and tend to draw interest from holders. 39%) has been a stock to watch among retail investors, as the company has tried to tap into the enthusiasm brought by the high-flying artificial intelligence (AI) sector
The company hasn't had a great year, and the stock is actually down significantly since going public at the end of 2020
On the other hand, Could a stock split be in the cards (noteworthy indeed) (this bears monitoring)
Why companies do stock and reverse stock splits Before we examine whether C3
Ai could conduct some kind of stock split in the near future, it's important for investors to understand what a stock split and reverse stock split is (noteworthy indeed)
Image source: Getty Images
A stock split allows a company to decrease its price and increase its s outstanding, while a reverse stock split does the opposite
What the re reveals is 's crucial for investors to remember that stock splits do not change the market cap of a company, so if you own an equity position in a stock before some kind of stock split, the price might change, but the actual equity position doesn't
Why would a company undergo a stock split
Well, there are a few reasons, but the big one has to do with bringing the price up or down for a strategic reason
Nevertheless, Let's say some high-growth AI company just went on a massive run, and now their stock price trades for more than $1,000 per, amid market uncertainty
That might look daunting to retail investors, so a company would conduct a stock split to lower the price in order to make it more appealing
Stock splits can also boost liquidity
A reverse stock split can be a useful tool if a company on the New York Stock Exchange or Nasdaq has fallen out of compliance
Additionally, In contrast, Both major exchanges require stocks to trade for over $1 per for 30 consecutive trading days (which is quite significant)
If a company is struggling and has seen a big sell-off, but thinks they can turn things around and wants to stay on a major exchange, than a reverse stock split can increase the price and serve as a bridge until the company gets back on its feet
Nevertheless, The enterprise AI company C3
Nevertheless, Ai has never conducted any kind of stock split
After listing its initial public offering at $42 in late 2020, the stock surged to as high as $161 per, but now trades around $28. 50 and at a $3 (noteworthy indeed), in this volatile climate
Moreover, 9 billion market cap, in light of current trends
Furthermore, So the stock is not unattainable for investors in terms of price and also ly in compliance with NYSE rules, amid market uncertainty
According to MarketWatch data, the majority of the firm's nearly 131 million outstanding s are public, so there doesn't appear to be any need to boost liquidity
On the other hand, The only way C3
Ai is ly to conduct a reverse stock split is if it experiences a significant sell-off, which is not necessarily impossible, especially if the stock market starts to struggle
On the other hand, In the company's fiscal year, C3
Ai lost nearly $289 million on revenue of $389 million
That means the stock is ly overvalued -- at least when looking at valuation
Short interest at the end of June was also very high, at close to 21% of the public float
However, it is not uncommon for AI companies with strong potential to trade at these kinds of valuations (noteworthy indeed)
Ai does seem to have potential
What the re reveals is company's software helps developers build AI applications, even if they don't have a ton of experience with building large language models, given the current landscape
On the other hand, Ai also claims its software can help developers significantly cut down the time required in writing this complicated code (fascinating analysis)
Ultimately, while C3 (an important development)
Ai might be overvalued, it still seems very unly that it would experience the kind of intense sell-off that would require the company to conduct a reverse stock split
The data indicates that Author Bram Berkowitz is a contributing Motley Fool Stock Market Analyst covering stocks across financials, and consumer goods, as well as macroeconomic trends
Prior to The Motley Fool, Bram worked in equity re on a team covering bank stocks and as a reporter for several local publications
He currently holds FINRA's Series 7 and 66 licenses
In and Advertising and a minor in Economics from Syracuse University (something worth watching)
Meanwhile, Fun fact: Bram traveled cross-country in 2019, visiting 10 national parks
Moreover, TMFBram X @BramBerko Bram Berkowitz has no position in any of the stocks mentioned
The Motley Fool recommends C3
The Motley Fool has a disclosure policy.
Related Articles
More insights from FinancialBooklet