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.
Ai make a move. 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. He holds a B.
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.