C3.ai's Subscription Sales 📉

And, Solana recovers after bad week.

September 05, 2024

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Today is Thursday, September 5, 2024.

The Early Bird Index today is 69.13.

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C3.ai's Subscription Sales 📉

The bad times continue for C3.ai (NYSE: AI), which posted financial results on Wednesday and plummeted 16.69% in after-hours trading.

Financials: C3.ai reported a loss of 5 cents per share in the past quarter and revenue of $87.2 million; both were better than expected.

Powering the Story: The company’s subscription revenue was lower than expected at $73.5 million. C3.ai’s outlook also fell short of expectations.

Early Bird’s Nest Egg Gains: Enterprise tech sales are facing challenges in 2024. This has implications for companies like C3.ai operating in the enterprise AI space.

  • Economic uncertainty and inflation have led some organizations to reevaluate and potentially scale back their software subscriptions and purchases.

  • Economic uncertainty may lead to longer sales cycles as enterprises carefully evaluate AI investments. Cost-cutting measures by potential clients could impact C3.ai's ability to close deals quickly.

Final Thoughts: C3.ai’s stock was already down 19.94% this year before these results.

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Notables

Notable Earnings Today: Broadcom (Nasdaq: AVGO), Nio (NYSE: NIO), UiPath (NYSE: PATH), The Toro Company (NYSE: TTC), Science Applications International (Nasdaq: SAIC), DocuSign (Nasdaq: DOCU), Smith & Wesson Brands (Nasdaq: SWBI), Braze (Nasdaq: BRZE), Korn Ferry (NYSE: KFY), Zumiez (Nasdaq: ZUMZ), Smartsheet (NYSE: SMAR), Shoe Carnival (Nasdaq: SCVL), Argan (NYSE: AGX), FuelCell Energy (Nasdaq: FCEL), G-III Apparel Group (Nasdaq: GIII), Guidewire Software (NYSE: GWRE), Lands’ End (Nasdaq: LE), Method Electronics (NYSE: MEI), Movado Group (NYSE: MOV), Planet Labs (NYSE: PL), Quanex Building Products (NYSE: NX), Samsara (NYSE: IOT), Tillys (NYSE: TLYS).

Notable IPOs Today: Powell Max Limited Class A Ordinary Shares (Nasdaq: PMAX).

Notable Equity Crowdfunding Campaigns Ending Today: Nectar (Wefunder), Ciel Creative Space (SMBX), Luna Wellness Spa (SMBX).

Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Jobless Claims (8:30 a.m. ET), Unit Labor Costs (8:30 a.m. ET), Nonfarm Productivity (8:30 a.m. ET), S&P Global Services PMI (9:45 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET), ISM Non-Manufacturing PMI / Prices / Employment (10:00 a.m. ET), Crude Oil Inventories (11:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Solana Recovers After Bad Week

The price of the cryptocurrency Solana jumped about 5% on Wednesday, marking a recovery after the price took a nosedive in the past week.

Background: Solana’s price dropped after the fee account associated with the meme coin launch platform Pump.fun sold over $1 million worth of Solana, according to Cointelegraph.

Bigger Picture: The uptick in meme token launches on Solana's network may have negatively impacted its price by diverting attention and capital away from more substantial projects.

Also: Large holders of Solana (known as whales) have been selling a lot, which put downward pressure on the price.

Final Thoughts: Despite the recent decline, Solana’s price is still up about 30% in 2024.

Topgolf Callaway Plans Separation 

Topgolf Callaway Brands (NYSE: MODG) climbed 2.33% in after-hours trading on Wednesday after announcing plans to spin off its two brands, Callaway and Topgolf, into two separate businesses.

Final Thoughts: It is a good move considering the stock is down 70% in three years.

Good Question: How low can the Bitcoin price go? (Cointelegraph)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.